The Minister for Roads and Highways, Kwame Governs Agbodza, has called on cement manufacturers in Ghana to reduce their prices from the current GH¢120, citing the recent strengthening of the local currency.
According to him, despite the cedi’s gains against major trading currencies, cement producers have failed to reflect this improvement in their pricing. He described this as unfair to consumers and warned that such manufacturers risk being excluded from upcoming government infrastructure projects.
Speaking to journalists ahead of the presentation of the mid-year budget, Mr Agbodza said:
Bags of cement
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Whilst every other commodity has responded to the gains we have all made together as a country by reducing prices, cement dealers are refusing to pass on the benefits to buyers. Henceforth, the Ministry of Roads and Highways will reconsider its engagements with producers who continue to ignore the need for price reductions.
He further noted that the government will prioritise companies that demonstrate a willingness to reduce costs in what he described as upcoming “massive” road projects. He added:
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In determining where we direct major government projects that require cement, we shall align ourselves with producers who are ready to pass on the gains from currency stability to the Ghanaian people.
The Minister also questioned why cement prices remain high despite falling costs of imported raw materials used in production.
He stated:
“What makes it so difficult for cement dealers to pass on the gains to the people of this country? We cannot sit back and allow them to rob us of this benefit. This rent-seeking must stop.”
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When asked what he considered a fair price for cement, Mr Agbodza suggested GH¢95 as a reasonable benchmark, stating it would reflect current economic conditions more accurately.
Meanwhile, the Ministry is expected to hold further consultations with stakeholders to address pricing concerns and ensure fair practices within the sector.
