The Minister for Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, has instructed the Ghana Standards Authority (GSA) to immediately shut down cement manufacturing companies producing substandard products for the local market.
Mrs. Ofosu-Adjare emphasized that these actions were necessary to prevent the circulation of dangerous products that pose risks to consumers, industry professionals, and property owners.
“Close down companies that are defaulting with substandard products to stop production until they can prove they can consistently produce quality products,” she said.
Disturbing Data
At a recent stakeholder meeting on March 5, 2025, the GSA presented concerning data revealing that some cement companies were producing products that did not meet Ghanaian standards.
The Cement Manufacturers Development Committee Regulation L.I. 2480 and the Ghana Standards Authority Act, 2022 (Act 1,078) empower the minister and the GSA to withdraw licenses and halt the sale of substandard products.
Safety Concerns
Mrs. Ofosu-Adjare stressed the importance of safety, stating that price should not be used as a reason to compromise on product quality. “Substandard products, particularly building materials, put everyone at risk,” she added. She also pointed out the potential dangers posed by poor-quality cement in public buildings such as hotels and guesthouses.
The meeting, chaired by Mrs. Ofosu-Adjare, also addressed the issue of recent cement price increases, which were implemented unilaterally by cement companies. The nine-member Cement Manufacturing Development Committee (CMDC), which monitors the cement sector, has been tasked with overseeing cement production standards and pricing.
Industry Acknowledgement
Industry players at the meeting admitted to implementing the price hike without consulting the CMDC and agreed to lower their prices moving forward. The companies also committed to complying with the law in declaring future prices.
Fair Pricing and Monitoring
The minister emphasized that while fair pricing is important, cement companies must not compromise on product quality. She also pledged to conduct regular visits to cement factories to ensure that substandard products are no longer produced.
“We will ensure the industry is well-regulated to protect everyone, including professionals, engineers, homeowners, and consumers,” she assured.
Price Regulation
Regarding price increases, the minister reiterated that cement prices must be declared by the CMDC, and the committee is responsible for publishing the maximum ex-factory prices of cement on a monthly basis. Companies that fail to have their prices approved by the committee will not be allowed to sell.
Prof. Dodoo, chair of the CMDC, stated that the committee has given all cement companies until the 8th of each month to declare their prices.
These prices will then be published to consumers by the 15th. While acknowledging that exchange rate fluctuations affect cement prices, the committee reminded companies to be mindful of the economic challenges faced by Ghanaians.
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