Minister for Trade, KT Hammond has stated that the intention behind the introduction of Legislative Instrument (LI) 2480 is not to control prices of the commodity but to offer enhanced transparency in the cement industry.
Speaking at a meeting convened by the Ghana Chamber of Construction Industry (GhCCI), Hammond stressed the need for manufacturers to publish detailed ex-factory itemised bills of materials to ensure fair pricing and adherence to quality standards.
Despite acknowledging the impact of currency fluctuations on production costs, he expressed concerns over the lack of transparency from manufacturers.
“There is a significant public outcry over the rising prices of cement. Our goal is not to cap prices but to understand and ensure fairness in how these prices are determined,” Hammond said.
This move comes amid heightened scrutiny and regulatory efforts to ensure cement quality and fairness. The cement manufacturers have said they are not against publishing their ex-factory prices and have expressed a willingness to do so, albeit with some concerns over the possible impact on competition.
The Minister suggested that manufacturers might be manipulating the exchange rates used for pricing, which could be contributing to the high costs.
“We are not looking to control prices. We simply want to know how manufacturers arrive at their prices,” Mr. Hammond reiterated.
He added that if retailers are found to have a significant spread in pricing, manufacturers have the responsibility to address it. If the production cost was significantly below the selling price, manufacturers would have gladly published their ex-factory prices,” he noted.
This lack of transparency has led to suspicions and agitations among stakeholders and consumers alike. The Minister added that a committee of stakeholders, including representatives from the manufacturing industry, have been tasked with examining the published prices for consistency.
This committee will ensure that the prices reflect the actual costs and are not artificially inflated. Possible sanctions await those found to be in violation of these regulations.
The Minister recounted his attempts to engage with cement manufacturers, who have been resistant to some of the proposed transparency measures, including the presence of media during discussions.
Despite these challenges, the Minister said he remains optimistic that the new regulatory framework will foster a more transparent and fair market environment. “Transparency in pricing is essential for building trust and ensuring that consumers are not being unfairly burdened,” Mr. Hammond said.
The President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng backed calls for enhanced stakeholder engagement and clarity in the pricing mechanism of cement.
He stressed the need for involvement of all relevant parties in policy discussions to ensure comprehensive understanding and acceptance.
Dr. Obeng also drew attention to international practices, noting that advanced nations have successfully implemented similar transparency measures.
“The advanced nations are practising it. It means that there is precedent elsewhere. So, if there is precedent, then it should be emulated for the betterment of this country,” he argued.
Chairman of GhCCI, Emmanuel Tetteh Martey, said that as the 21-day maturity period for the new LI continues, further interactions will happen to monitor the situation closely, ensuring that both all parties are aligned to ensure that standards and pricing practices are adhered to for the benefit of all Ghanaians.
B&FT