Elizabeth Ofosu-Adjare considers tax relief for local calcined clay

Trade Minister Elizabeth Ofosu-Adjare has announced that the government is considering the introduction of tax relief measures to boost the local production of calcined clay. This initiative is designed to provide a viable local alternative to imported clinker, a primary component in cement manufacturing. By incentivizing the use of calcined clay, the Ministry of Trade aims to strengthen the domestic supply chain and reduce the industry's heavy reliance on foreign raw materials. The Minister disclosed the proposed plan following a strategic meeting with the Chief Executive Officer of CIMPOR Cement Africa. During the discussions, it was highlighted that the move aligns with the broader import substitution policy of the John Mahama administration. By shifting focus toward locally sourced calcined clay, the government expects to support local manufacturers in lowering their overall production costs. This reduction in overhead is anticipated to help stabilize cement prices on the retail market, protecting consumers and contractors from the volatility of global market fluctuations. Beyond cost stabilization, the proposed tax incentives are expected to improve the competitiveness of Ghanaian-made construction materials. Minister Ofosu-Adjare noted that enhancing the affordability of cement is a critical step in addressing Ghana's significant housing deficit. By making building materials more accessible through reduced taxes on key inputs, the government hopes to stimulate growth within the construction sector and create employment opportunities in the extraction and processing of local clay resources. The proposed tax relief framework is currently undergoing internal review and will be presented to the Cabinet for formal deliberation. If approved, the policy will then be introduced to Parliament for further consideration and legislative backing. This systematic approach ensures that the incentives are well-structured to provide maximum benefit to the cement industry while fostering long-term industrialization and economic self-reliance in the construction sector.