The Founding President and Chief Executive Officer of renowned and leading policy think-tank, IMANI Centre for Policy and Education, Franklin Cudjoe has strongly criticised the Trade and Industry Minister, Honorable KT Hammond over his recent proposal to regulate cement prices through a new Legislative Instrument (LI).
Mr Cudjoe, in a scathing critique, questioned the efficacy and rationale behind the proposed regulatory measures, calling for a more nuanced approach to addressing the underlying issues affecting the cost of cement and other essential goods in Ghana.
Mr Cudjoe expressed his concerns over the Trade Minister’s strategy, which involves setting up committees and threatening cement manufacturers to reduce prices or impose controlled pricing.
He described these actions as “aimless” and “unreasonable,” arguing that they fail to tackle the root causes of the price hikes.
He posited that instead of the Trade Minister setting up “aimless committees and issuing unreasonable threats to cement manufacturers to forcibly lower prices or fix a control one, he should find out the causes of the general increase in prices.
“Alas, note to self-(after joining the forex committee set up by the former sacked finance minister )..when you see a snake, kill it; do not set up a committee on snakes to determine how poisonous it is likely to be”.
Franklin Cudjoe, Founding President of IMANI Centre for Policy and Education
Factors Responsible for Cement Price Increase
Highlighting the key factors responsible for the alarming increase of cement prices in the country, the IMANI Centre for Policy and Education Founding President outlined forex exchange rate losses, hiking interest rates, innumerable killer taxes, and electricity tariffs as the “first-order culprits”.
Moreover, the IMANI Centre for Policy and Education Founding President, Franklin Cudjoe highlighted that the problem extends beyond cement prices.
He pointed out that essential medications and supplements are similarly affected by the same economic pressures, highlighting the widespread nature of the problem.
“It isn’t cement prices alone. Essential meds, supplements too. Daniel Sekpey , my senior in KNUST ( Land Eco), called me a week ago to stockpile because prices were heading north from today!”.
Franklin Cudjoe, Founding President of IMANI Centre for Policy and Education
Mr Cudjoe, in a fervent call to action, emphasized the need for a comprehensive understanding of the economic factors driving up costs, suggesting that the Trade Minister engage in a meaningful dialogue with key stakeholders, including Vice President Dr Mahamudu Bawumia to find an amicable solution to address the alarming cost of cement in the country.
He urged the Trade Minister to seek “clear, unambiguous, truthful, and actionable ways” to address the prevailing and alarming cost of cement affecting the construction sector of the country.
This statement underscores the broader economic challenges facing Ghanaians, including the devaluation of the cedi, rising interest rates, and increasing taxes and utility costs.
Mr Cudjoe’s call for a more informed and strategic approach to economic management reflects a growing frustration among industry leaders and the general public.
The proposed LI to regulate cement prices has sparked significant debate, with many industry experts and civil society leaders questioning its potential effectiveness.
Critics argue that price controls could lead to shortages, reduced quality, and a black market, exacerbating the very issues they aim to solve.
In an earlier call, the Minority Caucus in Parliament urged President Nana Addo Dankwa Akufo-Addo to instruct the Minister for Trade and Industry, K.T. Hammond, to halt the proposed legislative instrument (L.I.) aimed at regulating the price of cement in Ghana.
Honourable Ibrahim Murtala Mohammed, a member of the Trade and Industry Committee of Parliament and the Member of Parliament for Tamale Central Constituency, in a compelling argument, vehemently criticized the Trade and Industry Minister over the proposed legislation.
He emphasized the need for presidential intervention to prevent the L.I. from being laid before Parliament, arguing that it fundamentally opposes the New Patriotic Party’s traditional support for market-driven price determination based on supply and demand.
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