Minister of Roads and Highways, Kwame Agbodza, has strongly criticised the current high price of cement in Ghana, describing the GH¢120 per bag price as unfair and exploitative to ordinary Ghanaians. He argued that a more reasonable cement price should be GH¢95.
Addressing the media in Parliament ahead of the mid-year budget review presentation, he
said, “In my view, GH¢95 makes sense instead of the so-called GH¢120 cedis, which I call rent-seeking and so much unfair to the ordinary Ghanaian.”
He expressed disappointment that while the prices of most commodities have fallen in response to the recent economic improvements, cement dealers have refused to pass on these gains to consumers.
“Whilst every other commodity in terms of price has responded to the gains we have all made together as a country and as a people by reducing prices, cement dealers are refusing to pass on the gains to buyers,” he said.
Minister Agbodza warned that the Ministry of Roads and Highways will take a second look at cement producers who refuse to lower their prices when awarding government contracts. “We will be more aligned to producers who are ready to pass on the gains made in the economy in terms of currency stability to consumers,” he added.
He stressed that the price of cement directly affects the cost of government projects, which are ultimately paid for by Ghanaian taxpayers.
“Because the price of cement is directly linked to the cost of government projects, and invariably, it is the Ghanaian taxpayer who will pay for those projects,” the minister said.
Mr. Agbodza condemned the unwillingness of cement dealers to reduce prices, especially as prices of other everyday items such as kenkey and waakye portions have increased.
“It is unacceptable that we can all make sacrifices as a country, yet cement dealers refuse to pass on gains to the people. This rent-seeking must stop, he stated.”
While the government prefers locally produced cement, the minister acknowledged that if local producers remain the most expensive, consumers will turn to cheaper imported options.
“If even Ghanaian cement producers have made themselves the most expensive, what do you think the average person buying cement will do? He will source it from a cheaper source,” he added.
Minister Agbodza revealed that government is preparing to launch a major road infrastructure project and will ensure that cement used for such projects is sourced from suppliers offering the best prices.
“ Government is about to unveil a massive road infrastructure project. We shall ensure that cement used for government projects is sourced from the cheapest suppliers on the market. It is as simple as that,” he concluded
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