Cement Manufacturers Urged to Publish Recommended Retail Prices

ACCRA, 18 JANUARY, 2024
The Ministry of Trade and Industry (MoTI) and the Chamber of Cement Manufacturers, Ghana (COCMAG) have agreed to periodically hold consultative meetings with industry players on developments in cement manufacturing, bagging and distribution, especially prior to the announcement of ex-factory price changes by the individual companies.

The Minister called the meeting to express concern about the rising cost of cement at the retail end and its adverse economic impact on the economy.  The Minister wondered how a bag of cement could be selling at GHS95.00 in some parts of the country, even around the Accra/Tema Municipalities.

The Minister entreated the industry to take cognizance of the widespread effects of price escalation and the need to closely monitor and exercise control over the recommended ex-factory price margins of distributors and retailers of their respective grades of products across the country.

Specific measures agreed on for urgent implementation include the following:

  • Individual companies to publish the recommended distribution and retail prices of the various grades of products sold in each of their respective distribution zones.
  • Vigorously enforce quality standards and weights of cement products on the market to clamp down on the production and distribution of substandard cement products.
  • Collaborate on exploring the possibility of introducing a uniform cement pricing formula that ensures uniformity and consistency in retail pricing across the country, taking into account key cost variables.

The Ministry would like to assure the consuming public that these and any other measures necessary will be implemented in collaboration with the Chamber of Cement Manufacturers, Ghana, to ensure price adjustments are justifiable and within reasonable limits.

ISSUED BY:
Head, Communication and Public Advocacy
Ministry of Trade and Industry
Accra

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Re: Account For “Missing” GHC207 Million Under 1d1f Initiative

Our attention has been drawn to a statement by the Ranking Member of the Select Committee on Trade, Industry and Tourism of Parliament of Ghana, Hon. Emmanuel Armah Kofi Buah (MP) on Friday, 17th December 2021 that the Ministry of Trade and Industry could not fully account for the total amount of Ghs269 million allocated for interest subsidy payment for loan facilities under the One District One Factory (1D1F) Initiative.

The Ministry wishes to state categorically that, the said statement attributed to the Ranking Member is not only misleading but totally inaccurate. The Ministry, upon request by the Hon. Ranking Member submitted full information on the application of the full amount of Ghs269 million allocated for interest subsidy payments for loan facilities granted by Selected Participating Financial Institutions (PFIs) to de-risk loans advanced to 1D1F companies.

For the avoidance of doubt, the following PFIs have received a total of Ghs269,689,383.76 as interest subsidies in support of 1D1F companies between 2017 and 2021. It is important to note that. the PFIs based on loan agreements signed between them and 1D1F companies. apply the interest subsidies allocated to them to cover part of the interest payment for loans granted to 1D1F companies. when interest payments are due. Neither the Minister nor any representative or the Ministry is responsible for disbursing interest subsidies directly to 1D1F companies.Based on reports submitted to the Ministry, the PFIs have to date utilized an amount of Ghs62,281,484.29 to cover interest subsidies from Government to support loans granted by the PFIs to 1D1F companies.

The balance of Ghs207 million is in the custody of the PFIs pending the maturity dates for interest payments for loans granted to IDIF companies in line with their loan agreements. The Ministry expected the Ranking Member to have put out the information also available to him, that to date the PFls have collectively granted loans amounting to Ghs2.69 billion to support 1D1F companies.

The Ministry wishes to use this opportunity to assure the private sector operators interested in the 1D1F Initiative that, it will continue to provide support for their projects working in collaboration with the PFls, to sustain and increase the over 153,782 jobs created by 1D1F companies across the country.

 

 

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