Ghana’s real estate sector is expressing frustration over the recently enacted Legislative Instrument (L.I.) on cement price regulation, arguing that it has done little to curb the rising cost of building materials.
The regulation, which became law on September 5, 2024, was introduced to stabilize cement prices and provide relief to developers. However, industry players claim that prices have continued to surge, raising questions about the law’s effectiveness.
Initially, the L.I. included a provision requiring cement manufacturers to seek government approval before adjusting prices. However, following significant opposition from manufacturers and sections of the public, this clause was removed. Despite the resistance, the L.I., sponsored by Trade and Industry Minister K.T. Hammond, was enacted after 21 parliamentary sittings.
The Ministry of Trade and Industry has assured the public that the legislation would lead to a reduction in cement prices across the country. Yet, the Ghana Real Estate Developers Association (GREDA) has expressed dissatisfaction, citing a lack of tangible results since the law’s implementation.
Speaking at the launch of the Diaspora Property Expo 2025 on November 21, GREDA’s Executive Secretary, Samuel Amegayibor, criticized the L.I.’s perceived ineffectiveness. “Since the L.I. on cement was passed, we, as users of cement, have not seen any difference. Prices have increased even from the day it was launched,” he said.
Amegayibor added that discussions with cement manufacturers revealed no significant changes in operations. “It’s as if no L.I. has been passed at all. We’re just doing business as usual. Perhaps it will take effect from a specific date the minister intends to announce, but we are not sure,” he noted.
He further emphasized the expectation that the law would take immediate effect upon its announcement. “We assumed, based on the minister’s last statement, that it would be implemented immediately. Manufacturers, wholesalers, and dealers have some responsibility under the L.I., but so far, we have not seen any action,” Amegayibor said.
The concerns raised by GREDA highlight the ongoing challenges in addressing the escalating cost of building materials, leaving developers uncertain about the future impact of the L.I. on the construction industry.
