In a landmark move to stabilize and standardize cement prices across Ghana, Trade and Industry Minister K.T. Hammond has put the spotlight on the newly minted Cement Manufacturing Development Committee. Tasked with ensuring uniformity in cement pricing nationwide, this initiative draws inspiration from the petroleum sector’s pricing model, aiming to replicate its consistency within the cement industry. This strategic direction not only seeks to promote price stability but also aims to bridge the gap between factory and retail prices, advocating for minimal markups.
Establishing Regulatory Frameworks
Hammond’s directive came into play last Friday in Accra, during the inauguration of the Cement Manufacturing Development Committee members. Historically, the Ghanaian cement industry has navigated without stringent regulatory oversight, a gap this new committee is set to fill. Formed under the auspices of the Ghana Standards Authority (Manufacture of Cement) Regulations, 2023 (LI 2480), the nine-member team is poised to guide the local cement manufacturing scene towards sustainable development while ensuring compliance with established standards.
Chaired by Professor Alex Dodoo of the Ghana Standards Authority, the committee’s composition reflects a cross-section of expertise. Members include representatives from various sectors relevant to cement production and environmental stewardship, underscoring a comprehensive approach to industry regulation.
Tackling Industry Challenges
The minister articulated the necessity of this legislative framework in an interview, citing persistent issues with quality and standards in the sector. The legislation marks a significant step towards addressing these challenges, empowering the committee to scrutinize pricing practices and enforce compliance with quality standards.
Particular attention is directed towards operations of certain Chinese-owned manufacturing entities in the Ashanti Region, previously closed due to non-compliance and substandard production practices. Hammond’s call to action underscores the urgency of rectifying permit irregularities and ensuring operational transparency within the industry.
A Vision for Uniformity
Hammond’s strategy emphasizes not only regulatory compliance but also public engagement and transparency. He advocates for clear communication about the committee’s role and the regulatory landscape governing the cement sector. Central to his vision is the alignment of retail prices nationwide, ensuring that the cost of cement remains within reasonable bounds from factory to consumer.
To this end, the minister has called on manufacturers to publicly disclose their factory prices, promoting transparency and enabling consumers to make informed decisions. Also, this directive aims to mitigate price discrepancies and foster a more predictable market environment.
Source: Graphic Online
