Economist Dr Ishmael Yamson has criticised government's legislative instrument aimed at controlling cement prices in the country.

The former Unilever Ghana CEO said it is a regressive development that will negatively impact the country’s investment drive.

“This country was under price control for 24 years from 1961 to 1985. What did it do? Did it change anything in this country? Indeed, it made matters worse.

“They say it's all about price control or price disclosure. But if you look at the LI, it says regulate. So what is the difference between regulation and control? No difference, take the dictionary, it is the same thing. In any case, when they say price disclosure, what element in the pricing don't they understand?” he said on Joy News’ PM Express Business Edition.

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Trade Minister Kobina Tahir Hammond early this month laid before parliament the LI on Manufacturing of Cement Regulation 2023.

The instrument, according to him will demand a disclosure of the mechanisms used to set the prices of cement.

The Director General of the Ghana Standards Authority, Professor Alex Doodo has explained that the L. I will resolve the challenges identified in setting the price.

Dr Yamson has questioned the L.I. and what it seeks to do saying it is public knowledge that approximately 78% of what goes into cement manufacturing is clinker and gypsum, which are all imported.

“So if the whole Ministry of Trade is telling Ghanaians that they don't know the price of clinker and gypsum, then let's go and shut them down.

“Clinker is not imported every day; you may probably discharge a whole shipload once every three months or so, and Customs are there with the import document. They know the price at which the clinker was imported. The Ministry of Trade can get that information whenever they want. They don't need the manufacturer to give them that when it is public information,” he stated.

Dr. Yamson stated, “There's no secret about it. It's a lie, let them come and challenge me that they can't find the price of clinker imported into Ghana. I've heard some of them say some cabal is fixing prices…go to the market, you see all the cement selling at almost the same price.”

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He noted this is not the first time a government has behaved in such a manner, citing an example during the John Kufuor administration when they faced similar accusations of manipulating cement prices.

“The predominant thing that drives cement prices is the exchange rate. You fix the exchange rate and the cement price will respond to that. Is the Bank of Ghana prepared to give cement manufacturers a fixed dollar rate for six months or a year?” he asked.

According to him, the signalling effect of what is happening in the sector will drive investors and potential investors away from the country.

“You asked me to come to your country to invest because you have a free market economy, but now you are changing the dynamics with price regulation? I am worried by that because you don’t change the rules of the game midway,” he stated.

He noted that the only aspect the Ministry of Trade may not know about cement manufacturing is the conversion process used by the over 14 manufacturers in the country.

He said that only differs depending on the technology and efficiencies, which the Ministry can investigate if it wants to know.

“It is a terrible thing, and if anything bad has happened to this country, it is this LI to control cement prices,” he said.