IEAG urges Parliament to reject Trade Minister’s proposed cement price regulation bill
The Importers and Exporters Association of Ghana (IEAG) has called on parliament to reject a proposed bill by Trade Minister K.T. Hammond aimed at regulating cement prices in the market.
In a statement released on Wednesday, June 26, IEAG’s Executive Director, Samson Awingobit, warned that the proposed Legislative Instrument (LI) would jeopardize the viability of domestic cement manufacturers.
The IEAG contends that the bill if enacted, would compromise fairness, transparency, and inclusive decision-making within the sector.
Mr Awingobit highlighted that the LI fails to tackle the fundamental issues driving cement price increases, notably the rapid depreciation of the Ghanaian cedi against the US dollar.
The association criticized the government for making a unilateral decision without consulting key stakeholders, including cement manufacturers and the IEAG, whose input is vital in addressing such complex issues.
Furthermore, the IEAG expressed concerns that the proposed regulation would not only damage the cement industry but also escalate production costs, which would ultimately be passed on to consumers.
The association has therefore urged parliament to reject the bill and instead encourage the Trade Minister to engage with stakeholders to develop a comprehensive strategy to address both the cement price escalation and the cedi’s depreciation.
“It Is quite worrying for the government to make such a unilateral decision which will not only hurt the cement sector but also affect the cost of production that will be passed on to the consuming public.
“We urge parliament to judiciously reject such the LI and direct the sector Minister to engage stakeholders to solicit collective input on how to address the price escalation of cement and the Cedi depreciation which has been partly blamed on the Cement Manufacturing sector,” read parts of the statement.
