The Minister for Trade, Agribusiness and Industry has declared that she has not issued a single licence for cement importation since assuming office, warning that individuals and companies engaged in illegal imports must cease such activities immediately or face enforcement action.
Elizabeth Ofosu-Adjare raised the concern during a meeting with the Chamber of Cement Manufacturers Ghana in Accra, where discussions focused on cement quality, pricing, smuggling, and unlicensed importation. Her statement comes amid growing concerns about substandard cement flooding the market from neighbouring countries, particularly Togo, at prices that undercut domestic producers.
Ofosu-Adjare stressed that while Ghana operates a free market economy, all players in the cement value chain are required by law to obtain valid licences to operate. She said this regulatory framework was crucial for maintaining standards, ensuring accountability, and promoting a level playing field for both local manufacturers and traders.
She expressed concern about the growing influx of unlicensed cement imports undermining the domestic industry and the risks to consumers and public safety. She described the situation as “a matter of urgency and necessity,” calling for immediate enforcement actions to halt the illegal trade. It’s not just about protecting local manufacturers; substandard cement in construction projects poses genuine safety risks to buildings and infrastructure.
The Minister commended the Ghana Revenue Authority for its ongoing efforts to curb cement smuggling at the borders but urged stronger vigilance and cross agency coordination. “I want the Ghanaian brand to adhere to standards in order to obtain the moral right in curbing invaders,” she stated, emphasising that domestic producers must maintain quality to justify regulatory protection against inferior imports.
Ofosu-Adjare also directed the Ghana Standards Authority to intensify market surveillance and enforce compliance, ensuring that only licensed manufacturers and importers are permitted to operate. She emphasised that quality assurance and fair competition were critical for sustaining investor confidence in the country’s industrial sector.
But here’s where the cement market situation gets complicated. COGMAG Chairman Frederic Albrecht noted that cement prices saw a 20 percent reduction in July 2025 on average due to the relative stability of the cedi. That price drop should be good news for consumers and the construction sector, yet the Ministry remains concerned about how some of those lower prices are being achieved through illegal imports rather than legitimate market competition.
Albrecht added that COGMAG continues to monitor market trends and urged consumers to remain vigilant against counterfeit cement products, advising buyers to verify authenticity before purchase to ensure value for money. It’s a reasonable warning, given that cement quality isn’t something you can easily assess just by looking at a bag. Structural failures due to substandard cement can take years to manifest, long after the construction is complete.
The Ministry’s renewed stance is part of broader efforts to regulate the cement industry, protect local producers, and maintain the integrity of Ghana’s construction materials market as demand continues to grow in line with infrastructure development. In March, the Trade Minister mandated closures for non-compliant operations, and by July, 300 inspectors were analyzing dozens of samples, showing that enforcement isn’t just rhetoric.
In September, the minister inaugurated the Fourth Portland Cement Monitoring Committee to tighten oversight of the sector, aiming to curb the use of imported substandard cements, enforce regulatory standards, and safeguard the competitiveness of local producers in a market crucial to infrastructure growth.
What makes this enforcement push particularly challenging is geography. Ghana shares borders with countries that have less stringent cement manufacturing standards or lower production costs. When cement from Togo can cross the border unofficially and sell at significantly lower prices than locally produced cement, the economic incentive for smuggling becomes substantial. Stopping that requires not just policy declarations but sustained border enforcement and market monitoring.
The domestic cement industry represents substantial investment in Ghana’s manufacturing sector. Major producers have built factories, employed thousands of workers, and invested in quality control systems to meet national standards. When illegal imports undercut their prices, it doesn’t just affect corporate profits; it threatens jobs and discourages future investment in local manufacturing capacity.
Yet consumers facing high construction costs understandably look for cheaper options wherever they can find them. The challenge for policymakers is ensuring that protecting local industry doesn’t mean forcing Ghanaians to pay inflated prices for building materials. That’s why the Minister’s emphasis on standards matters. If locally produced cement genuinely meets higher quality standards than smuggled imports, consumers should understand they’re paying for reliability and safety, not just regulatory protection.
The cement monitoring committee’s work will likely focus on several fronts: identifying and shutting down operations using substandard materials or processes, tracking cement movement across borders to detect smuggling patterns, verifying that all cement on the market comes from licensed sources, and ensuring that quality testing happens regularly at both production and retail levels.
The 20 percent price reduction in July suggests that when the cedi strengthens against major currencies, cement costs can decline because manufacturers import less expensive clinker and other inputs. That’s the kind of price movement driven by legitimate market forces rather than regulatory evasion. The Ministry’s goal appears to be preserving that legitimate competition while eliminating the unfair advantage that smugglers gain by avoiding taxes, licensing fees, and quality compliance costs.
For Ghana’s construction sector, reliable cement supply at reasonable prices remains essential. The country has ambitious infrastructure development plans that require massive quantities of cement. If enforcement against illegal imports becomes too aggressive and reduces supply, prices could spike in ways that slow construction activity and hurt economic growth. If enforcement is too lax, substandard cement could compromise structural integrity of buildings and infrastructure.
Ofosu-Adjare’s declaration that she hasn’t issued any import licences since taking office sends a clear signal about policy direction, but implementation will determine whether it translates to meaningful change in market dynamics. The Minister has the regulatory tools, the enforcement agencies are engaged, and the monitoring committee is in place. What remains to be seen is whether sustained pressure can actually reduce illegal cement imports without creating supply shortages or unjustified price increases that hurt consumers and the construction industry.
Source: newsghana.com.gh
