The CEO of the Chamber of Cement Manufacturers has cautioned that a proposed Legislative Instrument (LI) aimed at controlling cement prices if approved, could significantly reduce production in Ghana.
Dr. George Dawson-Amoah expressed concerns that forcing producers to sell at non-profitable prices would distort the market and potentially lead to shortages.
In an interview with JoyNews, Dr Dawson-Amoah highlighted the capital-intensive nature of the cement sector, suggesting that unprofitable pricing could deter future investments.
If you’re going to force me to sell at a price that is not profitable, investment will be curtailed,” he remarked, noting the impact on workers and operational costs.
Dr. Dawson-Amoah criticized the government for what he perceived as prioritizing political expediency over economic rationale in an election year. He questioned the timing of the proposal, suggesting that economic readiness for such regulatory measures was lacking.
The Chamber has been at odds with the sector ministry over the LI, arguing that it fails to address the underlying causes of cement price increases and could undermine industry fairness and transparency. Despite these concerns, the Trade Minister has already laid the LI in Parliament, awaiting approval.
Meanwhile, Prof. Alex Dodoo, the Director General of the Ghana Standards Authority, defended the need for regulation in the cement sector.
“We have an industry that was never regulated. You begin to regulate it, and players who have been calling the shots to Ghanaians begin to present a different face,” he countered, rejecting claims that the directive is politically motivated.
SOURCE: DAILY MAIL GH
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