Roads Minister Warns Cement Producers to Reduce Prices Now or Lose Out on Gov’t Projects

In a stern warning to cement producers across the country, Minister for Roads and Highways, Governs Kwame Agbodza, is demanding a reduction in prices to reflect the current economic stability and appreciation in the local currency.

Failure to comply with this call, the minister says, will come with a hefty cost. Kwame Agobodza says, recalcitrant cement producers risk exclusion from the government’s upcoming massive road infrastructure projects.

Speaking during a press briefing in Parliament, the Minister expressed outrage that despite a significant appreciation of the Ghana cedi against major trading currencies, the price of cement, an essential input in construction, remains unjustifiably high, with some brands still retailing at GHS120 per bag.

A very disturbed Kwame Agbodza described this behaviour as rent-seeking, which is unacceptable and must stop.

“We will take a second look at all those producers who are refusing to pass on the gains to the public,” Agbodza fumed. “If you are a cement seller today, you better look at the possibility of passing on the gains made in the economy in terms of your inputs, so that the prices of cement must come down.”

The Minister noted that the cost of cement is directly linked to the pricing of government infrastructure projects, which are funded by the taxpayer. He cautioned that any contractor or supplier unwilling to reduce prices in line with current economic realities will not benefit from government procurement.

“I don’t have the power to punish them,” he admitted, “but I can direct that we look favourably at buying cement from those sources that actually reflect the realities of the economy.”

Agbodza’s comments come at a time when the government is preparing to roll out one of its largest road infrastructure programmes in years. The initiative, he revealed, will require massive quantities of cement, presenting a huge commercial opportunity for producers. However, the Minister indicated that this opportunity will only be available to those willing to reduce their prices.

Commenting on the indicative price he finds reasonable, considering the gains made in the cedi, the Minister maintained that, per his calculations, cement producers can reduce prices to GHS 95 and still make a significant profit.

“The government is about to unveil a massive road infrastructure project. We shall be ready to determine that the cement that is used for government projects should be sourced from sources that are cheaper on the market. It’s as simple as that. 95 cedis makes sense to me instead of the so-called 120 Ghana cedis, which are called rent-seeking and so unfair to the ordinary Ghanaian,” he indicated.

Should the cement producers heed this call, it will be good news to the country’s construction sector. For private home builders, contractors, and taxpayers alike, the Minister’s position signals a shift toward economic justice and practical accountability.

For now, as the cedi stabilizes and inflation slows, all eyes will be on how cement producers respond, whether they join the national effort to pass on gains to the people or cling to profits at the expense of public trust.

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