The Government has challenged claims that the new Legislative Instrument (LI) on cement pricing is anti-business and will hurt manufacturing firms in Ghana.

The Government has also explained that the LI will rather encourage full disclosure and transparency in setting prices for cement.

The Chairman of the Cement Manufacturing Development Committee and Director General of the Ghana Standards Authority (GSA) Professor Alex Doodo disclosed this on PM EXPRESS BUSINESS Edition with host George Wiafe.

“Investors will come to Ghana because the various sectors that they want to operate are better regulated and there is full disclosure on pricing to aid competition”, he argued.

Professor Doodo insisted that asking cement producers to fully disclose their pricing mechanism cannot be described as price control.

Background

The Minister of Trade and Industry K. T Hammond recently lay before Parliament the LI.

Mr. Hammond argued that the move was influenced by sudden increase in prices of cement products.

Citing the petroleum sector as an example, Mr. Hammond said “we should see the same for cement products in the country”.

He pointed out that the GSA (Manufacture of Cement Regulation 2023), proposes the establishment of Cement Manufacturing Development Committee to guide the implementation of the policy.

Preliminary Provisions in Legislative Instruments

Mr. Hammond is said to have made some amendments to the initial LI that was laid before parliament.

This was to address some concerns that the LI made provisions for directors of cement companies to face jail term if they fail to comply with the law.

Some of the key requirements of the regulation are:

b. Enforcement of applicable standards and guidelines in setting of Cement Manufacturing firms

c. The Establishment and enforcement measures to govern the operations of cement manufactures.

d. seek full disclosure on pricing , but  the regulation of the entire industry.

 e. Cement Manufacturers are expected at the beginning of every month submit a report on the ex-factory price of the cement to the committee.

f. The report should take into consideration, the cost of transportation and distribution, Profit Margin, and other related cost.

GSA on regulating the sector

Prof.  Doodo said other countries have implemented similar policies which have enhanced transparency.