Industry calls for dialogue on cement price control

Amid heated disputes over the newly proposed price control framework, the Chamber of Cement Manufacturers, Ghana (COCMAG) is calling for constructive dialogue and collaboration with government. The cement industry is urging a reconsideration of what it describes as the 'heavy-handed' approach embodied in the Ghana Standards Authority (Pricing of Cement) Regulations, 2024 (L.I.) proposed by trade minister K.T. Hammond. 'COCMAG urges government to reconsider this heavy-handed approach and engage in constructive dialogue with the industry. Transparency in cost structure, a focus on long-term solutions like promoting local sourcing of raw materials and open communication are key elements for ensuring a sustainable and affordable cement supply for Ghana,' it said in a statement. COCMAG's appeal comes as the sector grapples with implications of the regulations, which grant a government committee at the Ghana Standards Authority (GSA) power to reject a cement producer's reported price without explanation or appea l. Additionally, the regulations prohibit sales of cement without committee-approved pricing, with non-compliance potentially leading to licence suspension. High taxes and levies The industry's concerns are rooted in a complex set of economic and regulatory challenges. Currently, taxes, levies, fees and charges from various government agencies account for an estimated 30 percent of cement's consumer price. Imported clinker, a crucial component in cement production, is subject to no fewer than 22 different taxes and fees before even reaching production plants. While acknowledging the country's need for revenue, the industry stressed the importance of transparency in any efforts to reduce consumer costs. Source: Ghana Web