A leading Research and Public Policy think tank CUTS International Accra is calling on the Minister for Trade and Industry, K.T Hammond to withdraw the Ghana Standards Authority (Pricing of Cement) Regulations 2024 from Parliament and rather pursue the Competition and Fair-Trade Practices Bill of 2022 as the later has the effect of not only addressing sector-specific issues but that the entire market from any unfair and anti-competitive conduct.

In a statement signed by the West African Regional Director of CUTS International, Appiah Kusi Adomako Esq, the consumer protection organization opined that while they appreciate the effort that the Minister intends to bring the prices of cement down, the approach for dealing with this must be grounded on evidence and not lead to market distortion.

“Whilst in the short term, consumers in the country may be able to see cement prices stabilizing or plummeting because of the tsarist effort by the government. We must equally be concerned about the medium and long-term implications of such an approach. When the government intervenes in a deregulated market and comes with price controls, it has the potential to scare industry players as well as potential investors.” the statement explained.

It further stated that “in the long run, some of the cement players may decide to exit the market because they do not find it profitable, deterring potential new entrants. If care is not taken the fourteen cement companies in the country could be reduced to one or two or they may be emboldened to form a cartel or price-fixing gang. This can take us back to the antediluvian days of the GHACEM monopoly or the GHACEM-Diamond duopoly”.

CUTS International believes that Ghanaians must be worried about how regulations are crafted in this country without ministries and agencies undertaking a robust regulatory impact assessment to understand the potential of unintended consequences. Like the financial sector clean-up which ended up with the decimation of indigenous banks, and savings and loans from the banking landscape.

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