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The Ghana Standards Authority (GSA) plans to close down cement factories that are using substandard materials.

Written by on July 1, 2024

The Ghana Standards Authority (GSA) is taking steps to shut down several cement manufacturing firms for producing low-quality products. This crackdown is part of efforts to uphold consumer protection under the Ghana Standards Authority Act 2022.

Currently, Ghana has only 14 licensed cement factories. In an interview with JoyNews, Prof. Alex Dodoo, Director General of the GSA, expressed concern over some factories using inferior materials in their production processes. He emphasized the GSA’s commitment to maintaining high standards and stated that three factories have already been closed down due to substandard practices.

“The Ghana Standards Authority has conducted research and identified that some manufacturers are compromising on quality to compete in the market. This is unacceptable,” Prof. Dodoo stated firmly.

He further indicated that additional closures of non-compliant factories are imminent, underscoring the authority’s unwavering stance on quality assurance in the cement industry.

Prof. Dodoo, who also chairs the Cement Manufacturing Development Committee responsible for regulatory frameworks, highlighted ongoing efforts to introduce legislation aimed at ensuring transparency and fair pricing within the industry.

“All stakeholders have agreed on the importance of cost components such as clinker, energy, and exchange rates,” he added, emphasizing the collaborative approach to industry regulation and oversight.

“I believe that the primary objective of the legislation is to enhance transparency in cement pricing, and cement manufacturers have identified certain taxes that need reconsideration.”

Dr. Dawson Amoah, Chief Executive Officer of the Cement Manufacturers Association, expressed readiness for dialogue, noting the challenges faced by manufacturers when they adjust prices.

“As a consumer myself, I understand that price increases are not made lightly. Manufacturers feel the impact and are reluctant to raise prices. However, sometimes they have no choice,” Dr. Amoah explained. “Instead of rushing into price regulations, I suggest initiating a dialogue to explore ways to stabilize cement prices.”

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