Minister for Roads and Highways, Kwame Governs Agbodza, has announced that the government is set to roll out a large-scale road infrastructure programme in the coming weeks and has issued a strong warning to cement producers to align their prices with current economic realities—or risk being excluded from supply contracts.
Speaking to the media in Parliament ahead of Thursday’s mid-year budget review, the Minister noted that the upcoming road projects would require significant quantities of cement and that fairness in pricing would be a key consideration in selecting suppliers.
“We are about to unveil a massive road infrastructure programme which will consume a lot of cement,” he said. “We shall be ready to determine that cement used for government projects should be sourced from suppliers offering the most affordable prices. It’s as simple as that.”
Mr. Agbodza expressed concern over the persistently high cost of cement, stressing that such pricing directly inflates the cost of public infrastructure and burdens the taxpayer.
“The price of cement is directly linked to the cost of government projects. And indirectly, it is the Ghanaian taxpayer who bears the cost,” he said.
He called on cement dealers to adjust their prices in line with recent improvements in the economy, including the appreciation of the cedi.
“Cement producers who are refusing to pass on the gains made in the economy, in terms of currency stability, to consumers will not be favoured,” he cautioned. “This rent-seeking must stop.”
The Minister clarified that the government is not imposing price controls, but merely demanding price fairness.
“I’m not trying to control prices. But I believe that everybody, including yourselves, knows that even trotro drivers and fuel traders have reduced their prices. What justification do we have for cement dealers not doing the same?” he asked journalists.
According to Mr. Agbodza, a fair price for cement should be around GH¢95 per bag, as opposed to the current market price of up to GH¢120.
“From the calculation that I’ve seen, it should not be out of place for cement to be sold at GH¢95. Of course, prices will differ slightly due to transport costs, but GH¢120 is just not fair to Ghanaians,” he said.
Responding to claims from cement manufacturers that imported clinker continues to drive up costs, the Minister pointed to the stronger cedi as a counterpoint.
“They said when the dollar was up, that’s why prices rose. Now the dollar is down. What’s the excuse now?” he questioned.
Source: Ernest Arhinful
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