Withdraw LI on cement pricing for further engagement – Dr Oteng-Gyasi

The Chairman of the manufacturing firm, Tropical Cables and Conductors Ltd, Dr Tony Oteng–Gyasi is pushing for the withdrawal of the Legislative Instrument (LI) on cement pricing from parliament for further engagement.

He argued that the bill in its current form will hurt cement manufacturing firms in the country.

“We should tread cautiously as this could end up hurting the economy. Nobody wants excessive pricing, neither does anyone want a price control regime for a product”, he told George Wiafe, host of PM EXPRESS BUSINESS EDITION on the Joy News Channel on July 11, 2024.

Dr Oteng-Gyasi disclosed that the Association of Ghana Industries (AGI) will soon meet the Minister of Trade and Industry, K.T Hammond to discuss the way forward.

He hinted that the engagement will help address all the concerns raised by the Cement Manufacturers in opposition to the LI.

He, however, questioned the rationale behind the argument that the prices of cement products are excessive and, hence must be controlled.

“Has the Ministry done some comparison with other countries in the region to establish that in dollar terms, the firms in Ghana are not pricing right or short-changing consumers”, he quizzed.

He advised the government to consider other options that will encourage free market operations.

“There are other forms of regulation that we can adopt and not this way in terms of the Legislative Instrument”, he said.

Background

Mr Hammond in July 2024 lay before parliament the LI on Manufacturing of Cement Regulation 2023.

The instrument, according to him will demand a disclosure of the mechanisms used to set the prices of cement.

The Director General of the Ghana Standards Authority, Professor Alex Doodo has explained that the L. I will resolve the challenges identified in setting the price.

Way forward on the Cement Pricing Issue

Dr Oteng-Gyasi is of the view that the engagement with the Ministry is very important because it will help resolve a possible shortage of cement if the LI is passed.

Speaking on the same programme, the President of the AGI, Dr Humphrey Ayim-Daker revealed that the Association is leading a new round of meetings with Mr Hammond.

Source: Joy Business