Cement prices still rising despite new Legislative Instrument – GREDA

On November 24, 2024, 1:41 PM

Players in Ghana’s real estate sector argue that the recently enacted Legislative Instrument (L.I.) on cement price regulation has failed to address the surging cost of building materials, including cement.

The regulation, passed into law on September 5, 2024, aimed to stabilise cement prices and provide relief to developers. However, stakeholders claim prices have continued to escalate, casting doubt on the law’s effectiveness.

Initially, the L.I. proposed requiring cement manufacturers to seek government approval before setting prices, but this provision was removed following intense opposition from manufacturers and sections of the public.

Despite their resistance, the L.I., sponsored by Trade and Industry Minister K.T. Hammond, was enacted after 21 parliamentary sittings.

The Ministry of Trade and Industry has assured Ghanaians that the legislation will reduce cement prices nationwide. However, the Ghana Real Estate Developers Association (GREDA) has expressed dissatisfaction with the law’s implementation.

Samuel Amegayibor, Executive Secretary of GREDA, voiced these concerns on November 21 at the launch of the Diaspora Property Expo 2025.

“Since the LI on cement was passed, so far as we the users of cement are concerned, we haven’t seen anything different. Prices have gone up even from the day it was launched, it has gone up further.

“So far as we’re concerned and with our earlier interactions with the manufacturers, nothing is happening, it’s as if no LI has been passed at all. We’re just doing business as usual, maybe it will take effect from a specific date the minister intends to announce, but we are not sure.

“We thought that so far as his last statement was made, the assumption is that it will take effect immediately. So far we’re concerned with the manufacturers, wholesalers and dealers, they have some responsibility per the LI.”