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LI 2240 AND CEMENT IMPORT, THE RIFT BETWEEN MOTI AND CMAG

Ghana Development In Focus, gdif, is a Civil Society Organization, made up of professionals in the construction development industry, seeking to proffer cogent policy alternatives in seeking solutions to the numerous problems plaguing the built environment in Ghana. We have assumed for ourselves, the duty to speak for the seemingly voiceless Ghanaian and to apply all legitimate means to ensure the enforcement of rules and regulations for a better “Constructed” Ghana.

We have been monitoring the developing rift between the MOTI and the CMAG, over the implementation of the LI2240 and its impact on the cement industry of Ghana. It is the case of CMAG that the Minister has violated LI2240 by granting permit to a company called Fujian to import cement into the country. In other media reports, the CMAG has laid claim that the imported cement are of inferior quality and does not meet industry standards.

*gdif* will like to state in most certain terms that the claim by the CMAG is false and has no basis and that the Minister violated no provisions of the LI in granting such a permit. The LI2240 is very clear and requires no technical appreciation of law to understand its intention. The action by the Minister rather promotes competition, which has resulted in the recent rapid drop in cement prices and will encourage more research into developing superior quality of cement for the market. The actions of CMAG leaves us with no doubt that the importation of cement has affected the astronomical profit margins of the members of CMAG which has informed their behavior and we are vehemently opposed to it.

We are by this press release urging the Minister to firmly uphold the spirit of the LI which is in the interest of free and fair trade and should not succumb to the mounting pressure from CMAG. The LI has the potential of creating a healthy environment of trade which eventually is in the interest of the consumer. We will like to put on record, that we are closely monitoring events and will not delay in exerting similar pressure on the MOTI, should the LI2240 be contravened by all parties.

As a body made up of professionals in the built industry, we will like to put emphasis on a technical aspect of the ensuing confusion linked to the claim in the media by CMAG that the imported cement are of inferior quality and that only the products of its members are good for use. We are of the view that, that position is absolutely false, not based on sound engineering judgment, baseless and it’s a breach of fair trade principles. We will encourage all media houses who are involved in perpetuating such falsehood through advertisement to end it and help educate the Ghanaian with facts.

gdif, will be organizing a press conference within next few weeks to address in detail, our concerns over the monopoly of CMAG and the unfair tactics they are adopting to keep their hold on the cement industry thereby keeping prices higher to their benefit despite the effort by the Ministry to bring it further down. We are of the view that cement must not sell beyond Gh20.00 and as such we are urging the Ministry to employ all legitimate avenues to help reduce the price of cement. We are in this to defend the interest of the consumer and Ghana as a whole

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Ing. Clement Amole
(Executive Secretary)
0271403336
0200411692

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