Dr. George Dawson-Amoah, CEO of the Chamber of Cement Manufacturers, has accused the government of prioritizing political expediency over economic rationale, particularly in an election year.
He questioned the timing of the proposed Legislative Instrument (LI) aimed at controlling cement prices, noting that discussions were initiated in an election year rather than in 2023.
“The thought that went into regulating cement prices is more politically motivated than economic. But we need to ask if Ghana is ready for it. Economically, Ghana is not ready for it,” Mr Dawson-Amoah stated during an interview on PM Express on Thursday.
He warned that the proposed LI, if passed by Parliament, could lead to significant market distortions and a potential cement shortage in Ghana.
“If you force a producer to sell at that price, and it’s not profitable, there’s market distortion. He/she would not produce, and if they don’t produce, then there will be a shortage. Is Ghana ready for a cement shortage?” he queried.
Mr Dawson-Amoah emphasized that the capital-intensive nature of the cement industry would deter investors if prices were set too low, leading to curtailed investments and potential job losses.
“If you’re going to force me to sell at a price that is not profitable, investment will be curtailed. Don’t forget, we have workers and other costs, so the workers will be affected,” he elaborated.
The Chamber has raised concerns that the LI would undermine their businesses by failing to address the root causes of cement price escalation.
Meanwhile, the Trade Minister has laid the LI in Parliament, awaiting its maturation and passage into law.
Source:norvanreports.com