Cement Manufacturers Fail To Meet Price Declaration Deadline

Cement manufacturers have failed to declare their ex-factory prices by the Friday, May 23, 2025, deadline, despite repeated directives by the Cement Manufacturing Development Committee (CMDC).

The declaration of ex-factory prices is essential for the committee, which is mandated by law to look into the price build-up of manufacturers to ensure there were no hidden costs or unjustified tariffs that would fleece the consuming public.

This follows public frustration over stagnant cement prices despite the recent appreciation of the Ghana Cedi against the US dollar, which many expected to lead to commensurate price reductions.

Order

In a letter dated May 21, 2025, the CMDC ordered all cement manufacturers to submit their ex-factory prices for 50kg bags of cement (grades 32.5R (BL) and 42.5R (BL)) by close of business on May 23, 2025.

The directive was issued under the Ghana Standards Authority (Pricing of Cement) Regulations, 2024 (L.I. 2491), which mandates monthly price reporting.

However, checks by the Daily Graphic revealed that as of Sunday, May 26, 2025, no manufacturer had complied, raising concerns about possible price-fixing or deliberate delays in adjusting prices downward.

Concerns

Consumers and construction firms have expressed disappointment that the strengthening of the Cedi had not translated into lower cement prices.

Cement, a critical input for housing and infrastructure, has remained expensive, despite the improved exchange rate, which should theoretically reduce production costs.

“If the dollar is falling and fuel prices have even dropped slightly, why are cement prices still so high? The manufacturers must explain,” an Aburi-based contractor, Paapa Abu Sarpong, said in an interview.

Sanctions

The Chairman of the CMDC, Prof. Alex Dodoo, confirmed that the committee would convene an emergency meeting this week to decide on sanctions for non-compliant firms because “the law is clear, and we will not hesitate to apply the necessary penalties”.

Legislative Instrument (L.I.) 2491, grants the committee the power to impose fines and other punitive measures, though specific sanctions remain undisclosed.

Efforts to get responses from major cement producers, including Dangote Cement, Ghacem, and CIMAF, were unsuccessful. The Chamber of Cement Manufacturers also did not respond when contacted. 

Economic analysts suggest that manufacturers may be delaying price adjustments to maximise profits or offset past losses incurred during the Cedi’s depreciation.

However, prolonged resistance to price reductions could trigger regulatory intervention.

The GSA (Manufacture of Cement) Regulation, 2023 (L.I. 2480), has already come into force to ensure the quality and safety of cement products in the country.

The regulation, which was approved unanimously by Members of Parliament (MPs), sets stringent standards and guidelines for cement production to safeguard consumers and promote industry best practices.

The LI, which was gazetted on November 23, took effect from December 22, 2023, making it mandatory for any entity intending to manufacture cement to obtain a licence.

Source: Graphiconline