Get licensed or face shutdown: Trade Minister warn cement producers

The Minister of Trade and Industry, K. T. Hammond, has ordered all cement manufacturers to secure licenses or cease operations immediately.

This directive was issued last Tuesday to the Cement Manufacturing Development Committee (CMDC), which was established last year to oversee compliance within the sector.

The call to action follows the recent enforcement of the Ghana Standards Authority’s Manufacture of Cement Regulation, 2023 (L.I. 2480), which requires all existing companies to re-register and obtain a license to operate.

Professor Alex Dodoo, the Director-General of the Ghana Standards Authority and chair of the CMDC, emphasized the urgency of this directive, stating that all cement manufacturers currently operating without a license are doing so illegally.

As it stands, not a single cement manufacturer in the country has applied for a license in accordance with the new regulations.

L.I. 2480 clearly stipulates that manufacturing cement without the necessary authorization is an offense punishable by imprisonment, highlighting the seriousness of the situation.

Professor Dodoo further explained that the regulation aims to ensure compliance among manufacturers and protect consumers and the environment.

He noted that while the cement manufacturing industry had previously operated without stringent oversight, the new law seeks to rectify this by enforcing quality standards.

The regulation has already been communicated through public notices, urging manufacturers to adhere to the new guidelines.

With the average price of a bag of cement reaching GH¢105, the regulation also addresses rising consumer concerns about quality and pricing.

The GSA’s intensified crackdown on substandard cement production has revealed troubling practices, including unauthorized use of the GSA certification logo and operation of factories without proper permits.

In response to these challenges, three companies in the Ashanti Region were shut down for using substandard materials in the last quarter of the previous year.

The Ministry of Trade and Industry has mandated a halt to the establishment of new cement factories until compliance with the new regulation is achieved, aiming to restore integrity and safety to the industry.