Regulating Cement Price not Sustainable, dialogue needed –Richard Acheampong tells Govt

The Member of Parliament (MP) for Bia East, Richard Acheampong has urged government to consider dialogue with producers of cement in the country rather than enacting laws to regulate their producing prices.

According to him, the Trade Minister’s pursuit to regulate cement pricing is not feasible considering what goes into the production of cement.

The Minister for Trade and Industry, K.T. Hammond’s in a recent interaction with Journalists, stated that the government is determined to ensure Ghanaians are not short-changed in the purchase of cement.

Consequently, the Minister submitted a proposed legislative instrument to parliament to regulate cement pricing in the country.

However, speaking to members of parliamentary corps on Tuesday, July 2, Mr. Acheampong said the increasing cost of cement is a combination of factors including exchange rate and cost of raw materials.

In his considered view, regulating the price of cement is not sustainable rout and that what government could do is to introduce fix exchange rate in importation of raw materials, emphasizing that,” if the cement producer knows that, this is the fix rate at the port, they also can fix their price and that could only be cured if the government come out with such a fix rate at the ports.”

The Minority MP explained that, though he was not in favour of high price of cement, the government should take cognizance of the fact that, cement production is a highly technical field and should not be politicised as is currently being done by the Trade Minister.

He highlighted the industry’s challenges, such as the heavy reliance on imported raw materials and the fluctuating exchange rate, have contributed to the recent increase in cement prices.

This, according to him, will require an extensive engagement and not a legislative provision, adding that, “The cement product that you see on the market is manufactured and produced based on the milling or importation of raw materials. A chunk of those raw materials, clinker, which we can’t get in Ghana, is imported.

“We all agree and no one can deny, cement prices have been escalating for the past three and a half months, and there is a reason for that, which the honourable minister knows. That is against the backdrop of how cement is produced, which hinges on the importation of raw materials.

“So, in a situation like this, the fluctuation of the foreign currency or exchange rate is crucial. It affects everything, including the price, the freight, and the tariffs at the port,” he stated

He berated the Trade and Industry Minister, KT Hammond, and said the Minister has lost the trust and confidence of the sector, especially cement manufacturers, the major stakeholder in the industry.

That fact, he said, is glaring in the refusal of cement manufacturers to meet the Minister over his attempt to introduce a Legislative Instrument (L.I.) to control the price of cement.

Mr. Acheampong contended that the Minister does not have the acceptability of the industry and called on the president to reassess his appointments.

He stressed the necessity of effective consultation and engagement with stakeholders, especially in addressing the escalating cement prices., saying, “the level at which the price of cement keeps going up is alarming. Engage the people, talk to them. You can even have an official meeting with a parliamentary select committee to get their input.”

“For instance, if you plan to lay an L.I. but the community and members are not aware, you won’t get acceptability and it will create a lot of confusion. We don’t have a controlled market; we are dealing with an open market system. The sources of importation of raw materials like clinker are different, and everything is quoted in dollars,” he stated.

He emphasized the instability of the cedi as a major issue and stressed the responsibility of the government to manage the forex, adding, “But the government, the Bank of Ghana, and the Minister of Finance have all gone to sleep.”

The Bia East lawmaker dismissed the notion of controlling prices through government intervention, arguing that such measures are outdated.

“We can’t control cement prices because that era has gone. It was under the military regime that prices were controlled. Today, everything is charged at the port in dollars. If the cedi is not stable, who pays for differentials? You can’t control prices without addressing the underlying economic issues,” he added.