••
CUTS International Flags Potential Cartel Behavior in Cement Industry's Uniform GH¢12 Surcharge
•2 min read•2 sources
CUTS International has sounded an alarm over potential anti-competitive practices within the Ghanaian cement industry after the Chamber of Cement Manufacturers, Ghana (COCMAG) announced a uniform GH¢12 per bag clinker demurrage surcharge. The surcharge, which applies to all member manufacturers, has raised significant red flags for the consumer advocacy and competition watchdog, which suggests the move may mirror cartel-like behavior. CUTS argues that while industry-wide challenges exist, a collective decision to impose an identical fee across the board undermines the principles of a free market and could unfairly penalize consumers.
The surcharge was established during an emergency meeting on August 28, 2026, and is slated to remain in effect until December 31, 2026. COCMAG has defended the decision as a necessary response to mounting operational costs at the Tema Port, where increased vessel waiting times have led to significant demurrage charges for clinker imports. However, CUTS maintains that pricing strategies should remain independent, as different manufacturers operate with varying cost structures and efficiencies. By setting a flat rate, the association effectively removes the incentive for individual companies to compete on price, potentially shielding less efficient producers at the expense of the public.
In light of these developments, CUTS is calling on the government to intervene by addressing the underlying operational bottlenecks at the Tema Port that triggered the surcharge. Beyond immediate logistics, the organization is advocating for the expedited development and enforcement of comprehensive competition laws in Ghana to prevent future price coordination and ensure a level playing field. Without a robust legal framework to govern market behavior, CUTS warns that such uniform pricing agreements could set a dangerous precedent for other sectors, ultimately weakening Ghana's economic competitiveness and consumer protections.