IMANI Economic Freedom Lecture Series: A Policy Dialogue with Future Economists at the University of Ghana
As part of our public education and policy outreach initiatives, the IMANI Centre for Policy and Education delivered a guest lecture at the University of Ghana’s Department of Economics on Tuesday 17 June 2025, addressing the economic consequences of increasing state intervention in Ghana’s markets. The lecture formed part of the ECON454: Public Finance II course and attracted close to 200 final-year economics students.
The session focused on two policy case studies led by government in recent years: the Ghana Standards Authority’s Cement Pricing Regulations (L.I. 2491) and the Cylinder Recirculation Model (CRM) implemented by the National Petroleum Authority. IMANI’s presentation explored the unintended consequences of these policies and their implications for competition, innovation, and investor confidence.
Unpacking the Cement Pricing Legislation: Regulatory Intent vs. Market Realities
IMANI opened the session by examining L.I. 2491, a directive requiring cement manufacturers to submit pricing structures for prior approval. While the Ministry of Trade defends this as a consumer protection measure, IMANI’s policy research reveals that the regulation may inadvertently suppress competition and investment in the sector.
Cement production in Ghana depends heavily on imported clinker, which is over 80% of total input costs, making pricing highly sensitive to forex fluctuations. IMANI warned that controlling prices without addressing import cost dynamics could push manufacturers to lower quality standards, undermining construction safety in the long run. Evidence from countries such as Zimbabwe, Nigeria, and Egypt demonstrate that cement price controls often result in market distortions and supply shortages.
Key industry voices, including the Chamber of Cement Manufacturers and the Ghana Real Estate Developers Association, share concerns that the regulation could slow investment and erode competitiveness.
The Cylinder Recirculation Model: Balancing Safety and Market Access
The second focus of the lecture was the National Petroleum Authority’s CRM policy, which seeks to replace decentralised LPG refill stations with a centralised cylinder exchange system. While the model is promoted as a safety-driven solution to gas explosions, IMANI’s analysis raised critical concerns about implementation risks and equity of access.
IMANI’s research suggests that CRM may favour large-scale distributors while marginalising small refill station operators, with job losses and affordability challenges likely consequences. The rigid pricing and supply structure may also reduce LPG accessibility, particularly in rural communities, potentially increasing reliance on firewood and charcoal with negative implications for both health and the environment.
Stakeholder consultations around the policy, IMANI noted, were limited, and many key industry associations, including the LPG Marketers and Operators Associations, continue to call for broader engagement and more flexible models.
Economic Freedom Under Pressure: The Broader Context
Framing these two cases within the larger trend of state interventionism, IMANI drew on both historical and contemporary data to highlight how excessive regulation can weaken the foundations of economic freedom. Citing classical liberal thinkers such as Ludwig von Mises and recent empirical studies by Rutar (2024) and Lemley (2022), IMANI underscored the role of market signals, innovation, and private enterprise in driving sustainable development.
Ghana’s transition since the 1980s from a state-controlled economy to a liberalised one, under reforms like ERP, the Growth and Poverty Reduction Strategy, and the AfCFTA agenda, has been central to private sector growth. However, recent trends in tax hikes, forex restrictions, and regulatory overreach threaten to reverse these gains.
Policy Alternatives and Student Feedback
As part of the lecture, IMANI proposed alternative approaches including tax incentives instead of price ceilings, industry-led safety compliance instead of centralised monopolies, and more inclusive consultation processes in public policymaking.
Student Interaction
The session, facilitated by Ransford Brobbey, Amprofi Agyemang and Denis Asare was well received by students, who engaged in a robust discussion on the tensions between regulation, market performance, and public welfare.
Yankey Samuel, President of the University of Ghana Economics Students Society (UGESS): “Generally, the experience was good. It helped us, as young trainee economists, to appreciate that what we learn is not merely theoretical but has real-world applications, especially when linked to current developments in Ghana. One challenge we often face is that most of the textbooks we use are foreign and focus on examples that reflect their economies. This kind of engagement bridges that gap by contextualising economic theory within our own national experience.”
Another student, Sheniel Nana Ama Entsuah, remarked: “We’re always doing theory in class. For me it was insightful to see how the theory was playing out in our economy, especially with the cylinder recirculation model. Your visit gave us an idea of what to do for our final year project. The constraints all parties were facing when it came to the implementation of the initiative was key. I think having an institution like yours have an unbiased, thorough examination of initiatives like these is necessary for a better country.”
And Eric Kwesi Bola, shared: “The guest lecture significantly enhanced my understanding by providing clear Ghanaian examples of market interventions; highlighting their unintended negative consequences (like distorted markets or higher business costs); explaining how policies impact business competitiveness and investment in Ghana; and emphasizing the importance of predictable and stable regulations for a healthy business environment.”
Advancing Public Understanding Through Policy Education
IMANI remains committed to fostering public understanding of key economic policies through dialogue, academic engagement, and evidence-based advocacy. We believe in promoting economic freedom, while ensuring fairness and safety, which remains essential to building a competitive and resilient Ghanaian economy.
