- CUTS International criticizes Minister Hammond's approach to cement price regulation.
- Price regulation is not the solution, says Appiah Kusi Adomako.
- Exchange rates, not regulation, drive cement prices up.
- Competition law, not price controls, is the answer.
Appiah Kusi Adomako, Director of CUTS International (West Africa), has criticized Minister for Trade and Industry, Kobina Tahir Hammond’s approach to addressing cement price regulation in Ghana. Adomako believes that Hammond’s focus on price regulation is misguided and will not solve the cement pricing challenge.
Instead, Adomako advocates for fostering a competitive market through competition law, which he believes is the key to addressing pricing issues in the cement industry. Adomako argued that legislative price controls are not the solution, and that a robust competition law is needed to promote a fair market.
He pointed out that cement is imported into Ghana, and the dollar-to-cedi exchange rate plays a significant role in driving prices up. Adomako questioned why the minister is targeting only cement, when other commodity prices, such as rice and cooking oil, are also increasing due to market forces.
He emphasized that in a free and competitive market, economic factors determine prices, and that the minister cannot dictate prices to importers at Makola market. Adomako reiterated that competition law is the best approach to addressing pricing issues in the cement industry, rather than relying on price regulation.
He urged the government to establish a robust competition law to promote a fair market, rather than resorting to price controls. By fostering a competitive market, Adomako believes that prices will be determined by market forces, rather than government intervention.
