CUTS International, Accra, a leading public policy think tank, has raised serious competition and antitrust concerns over the decision by the Chamber of Cement Manufacturers, Ghana (COCMAG) to introduce a uniform GH¢12 per bag clinker demurrage surcharge, warning that the collective agreement among competing firms bears the hallmarks of cartel conduct .
The think tank acknowledged the serious cost pressures confronting cement manufacturers due to severe congestion at Tema Port. COCMAG reports that vessel waiting times increased from an average of seven days in January to between 30 and over 40 days in August 2026, resulting in estimated industry-wide demurrage costs of US50 million during the first eight months of the year .
Competitors must compete, not coordinate prices
According to COCMAG, the GH¢12 surcharge comprises GH¢10 before tax and GH¢2 in taxes and levies. The decision was reportedly reached at an emergency meeting on August 28, 2026 . The surcharge will remain until December 31, subject to monthly monitoring and a review in January 2027 .
CUTS does not dispute the industry’s right to recover legitimate costs but emphasises that the competition concern arises from how those costs are passed on to consumers .
“Cement manufacturers have every right to recover legitimate demurrage costs. What raises a red flag is when firms that are supposed to compete meet and collectively determine a common surcharge to be paid by consumers. When competitors agree on an element of price rather than determine it independently, such conduct bears the classic hallmarks of cartel behaviour,” said Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International .
The organisation stressed that calling the amount a “demurrage surcharge” rather than a price increase does not remove the competition concern, as a surcharge forms part of the amount ultimately paid by consumers .
Different manufacturers have different cost structures
CUTS argued that cement manufacturers operate with different shipping contracts, clinker volumes, vessel arrangements, inventory levels, financing costs, and operational efficiencies. There is no economic reason to assume that each manufacturer’s additional cost per bag is identical .
One manufacturer might need GH¢12 to recover its costs, while another might require GH¢8. A more efficient manufacturer might absorb part of the additional cost to retain customers or gain market share .
“The question is why companies with different cost structures and different demurrage exposure should all arrive at exactly the same GH¢12 surcharge. Each company should calculate its own costs and independently determine what it charges consumers. Different costs should ordinarily produce different commercial responses,” Mr Adomako said .
Airline industry provides comparison
CUTS cited the airline industry as an example of how competition should function. Fare information reviewed for the Accra-Kumasi route for September 15, 2026, shows Africa World Airlines applying a fuel surcharge of GH¢220, while PassionAir applies a surcharge of GH¢75 .
The difference reflects distinct aircraft types, fuel consumption patterns, and commercial strategies. Africa World Airlines operates jet aircraft, while PassionAir operates turboprop aircraft. They need not incur identical fuel costs or impose identical fuel surcharges .
If competing airlines met and agreed on a uniform surcharge, it would raise the same cartel concerns now being raised in the cement industry .
Trade associations must not become vehicles for cartel conduct
CUTS acknowledged COCMAG’s legitimate role as an industry association, noting that cement manufacturers have every right to collectively engage government and the Ghana Ports and Harbours Authority (GPHA) over port congestion, berth availability, and vessel delays .
However, the think tank warned that a trade association risks crossing the boundary when competing members discuss, recommend, or agree on prices, surcharges, or other commercially sensitive matters which each company should determine independently .
CUTS called on COCMAG to clarify whether the GH¢12 surcharge is a collective decision or recommendation to its members, and whether each manufacturer remains free to charge GH¢12, a lower amount, a higher amount, or no surcharge at all . The organisation also cautioned against using the proposed monthly monitoring and January review to exchange information on future prices, production volumes, individual costs, or clinker stocks .
Address port problem but preserve competition
CUTS called on the government and GPHA to urgently address the operational constraints creating excessive demurrage costs at Tema Port. About 70 percent of containers at Terminal 3 undergo full physical inspections, seven times the rate recommended by the World Customs Organization, contributing significantly to delays .
The lack of rail connections to the hinterland and underused inland container depots further exacerbate congestion at the port . The cement industry has incurred US50 million in demurrage charges over eight months .
“COCMAG should collectively fight the demurrage problem. Individual manufacturers should independently decide what they charge consumers. Businesses must recover their costs and make profits, but competitors must compete, not coordinate prices,” Mr Adomako said .
CUTS stressed that Ghana’s lack of comprehensive domestic competition law makes this development even more concerning . The think tank called for renewed urgency in passing Ghana’s Competition and Fair Trade Practices Bill and establishing an effective national competition authority.
A formal determination of cartel infringement would require examination of what was discussed and agreed at the COCMAG meeting and how the surcharge is implemented. Nonetheless, where competitors collectively agree on a uniform component of the price consumers must pay, the conduct raises a serious cartel red flag that should not be ignored .
