Ghana’s real estate sector players are claiming that the newly enacted Legislative Instrument (L.I.) on cement price regulation has not effectively tackled the rising expenses of construction materials, such as cement.
September 5, 2024 marked the passing of a regulation that sought to stabilize cement prices and offer assistance to developers. Despite stakeholder claims that prices have continued to rise, there are doubts about the effectiveness of the law.
Initially, the L.I. provision requiring cement manufacturers to obtain government approval before setting prices was initially proposed, but it was later removed due to strong opposition from manufacturers and some members of the public.
Despite their reluctance, the L.I., sponsored by Trade and Industry Minister K.T. Hammond was established following 21 sessions of Parliament.
Ghanaians can rest assured that the Ministry of Trade and Industry’s legislation will lead to lowered cement prices across the country. The Ghana Real Estate Developers Association (GREDA) has voiced their dissatisfaction with how the law has been implemented.
At the launch of the Diaspora Property Expo 2025 on November 21, Samuel Amegayibor, Executive Secretary of GREDA, raised these concerns.
Since the passing of the LI on cement, as cement users, we have noticed no changes in the product. Prices have continued to rise since the day of its launch, and they have increased even more.
As far as we’re concerned and based on our previous interactions with the manufacturers, it appears that no significant progress has been made, as if the LI has had no impact. We’re continuing with our normal business operations, though there may be changes coming into effect on a designated date that the minister plans to disclose, but the details are uncertain.
We assumed that his last statement meant that it would go into effect immediately. Up to this point, our focus has been on the manufacturers, wholesalers, and dealers who all carry some responsibility according to the L.I.
