Producers of cement in Ghana attribute the rising prices of cement to the depreciation of the Cedi.

Executive Secretary of the Cement Manufacturers Association of Ghana (CMAG), Rev. Dr. George Dawson-Ahmoah expressed on TV3’s "Key Points" program on Saturday, June 29, that the rapid fall of the local currency has significantly affected their operations.

This, in turn, has forced them to increase cement prices, as clinker, a key component in cement production, is imported and thus directly impacted by the Cedi’s depreciation.

Rev. Dr. Dawson-Ahmoah emphasized that while other factors contribute to price hikes, the main current issue is the currency depreciation.

“It has a huge impact on the pricing of cement. There are other factors but currently this is a major concern now and that is what has motivated the Minister to rush to parliament to regulate prices. Why didn’t he do it last year?” He said.

He questioned why the Trade Minister, KT Hammond, only recently rushed to Parliament to regulate prices, implying that similar action wasn’t taken the previous year.

“Why is the Minister avoiding or just running away from this discussion? Previously, our position has been that these prices of cement, the increase of prices of cement, it is not done in a vacuum. It is not done just because we wake up in the morning and do it,” he said.

“It is as a result of a negative trend in the economy, which is warranting such increases, and that is the issue. And like I said, what is happening now with cement prices is just because of the rapid and consistent depreciation of the cedi against the foreign currencies.

“We don’t know anything about it. And with my common knowledge in legislative instruments, don’t you involve stakeholders before it gets to Parliament? Don’t you involve stakeholders in the process?” he quizzed on Tuesday.

Dawson-Ahmoah argued that regulation through a Legislative Instrument (L.I.) is unnecessary and criticized the lack of consultation with industry stakeholders regarding the L.I.

KT Hammond responded by stating that he had engaged with the cement manufacturers, urging them to address the price issues.

“I asked them to ensure that something was done about it. In my absence, I was told that the minister wasn’t going to be able to do anything.

“They would not listen, they wouldn’t do it, and they would go the way they want. “Encouraging them to do it is a moral persuasion. If moral persuasion fails, there is a system in the country, there’s a constitution, and we are preyed by a rule of law. If we don’t accept the moral principle, at least some sort of economic principle, the good people of Ghana must benefit. I don’t think it is fair for the way they are pricing and the way, haphazardly each one of them decides and dictates how much a bag of cement should be sold for.

“This is quite apart from the quality that they are producing. Some of the companies are producing substandard products. We have had to deal with this matter,” he said.

However, he noted their reluctance to comply, indicating that moral persuasion had failed, and emphasized the need for regulatory measures to ensure fair pricing for Ghanaians. He also raised concerns about some companies producing substandard cement products.

An attempt to present the document in Parliament on Tuesday, June 26, was blocked by the Minority, who insisted that the L.I. should be discussed before proceeding.