The Ghana Real Estate Developers Association claims that the country’s legislative measure to control cement prices was a positive move.
KT Hammond, the minister of trades and industry, has promised to reject the Chamber of Cement Manufacturers’ petition to postpone the adoption of a law intended to control cement prices.
According to KT Hammond, laws are necessary to stop a group of manufacturers from taking advantage of the general public.
Under the proposed LI, cement manufacturers could face up to three years in jail for violations.
The LI would assist the association in effectively budgeting and carrying out projects without incident, according to Dr. Stephen Debrah-Ablormeti, the former vice chair of the association.
He stated, “It’s an exciting one for us developers,” in response to Joy FM’s Top story. We find this one intriguing because we have to deal with material costs from a very short lead time.
“For instance, the last time cement price was increased in Ghana, it was just in May. It was increased by …and then as of this morning we got a text message from the cement manufactures that effective first of July they are increasing it again by GH₵12.
“The truth of the matter is that if you are on a project and it takes you 24 months to develop, giving the fact that cement contributes to about 70% of the building component, once the price of cement is increased, the price of block is increased, price of concrete is increased, price of plastering materials are all increased because it is the same ingredient that affects them in terms of their components.
“So you realise that you get on a project from January, before December this project is already experiencing 30, 45% increase in cost,” he added.
Again, he said a bill of this nature will bring some sanity to the market and emphasised that “We strongly support the position of the honourable minister and with the backing of industry, we should be able to have some conversation that will be equitable for all on the market.”
