Cement prices have surged by 29% to GH¢110 despite a ministerial directive to the Cement Manufacturing Development Committee in Ghana to halt any hike in the product.
Minister of Trade and Industry Kobina Tahir Hammond recently called for an immediate reversal of these price hikes to alleviate pressure on Ghanaians.
However, this directive appears to have been ignored, possibly due to overlooked root causes of the increases.
In a May 15 statement, the ministry urged the Cement Manufacturing Development Committee (CMDC) to enforce the price reversal without fail and ensure uniform cement prices nationwide.
Consequently, the Chamber of Cement Manufacturers (COCMAG) gave reasons for the recent price hikes.
The price increase was hugely due to the depreciation of the Ghanaian cedi against the US dollar, which increased the production cost.
In a statement signed by the Chief Executive Officer of COCMAG, Dr George Dawson-Ahmoah, the chamber explained that the cement industry relies on imported raw materials priced in foreign currencies, particularly the dollar.
“Additionally, some tariffs, levies, and taxes imposed by other authorities such as the Ghana Ports and Harbours Authority are also dollar-denominated, further exacerbating expenses,” the press release explained.
The increase will inevitably wreak havoc on the real estate industry, shifting the cost to customers and pushing rent prices in Accra to new heights.
Prices show a significant jump from last week to this week, leaving many buyers bewildered.
In May 2024, cement ranged from GH¢85 to GH¢90, depending on the brand and ratio. As of June 4, 2024, prices soared to around GH¢110, dealers and retailers said.
One dealer revealed current prices: Dzata cement (42R) is now GH¢108, Cimaf (42R) is GH¢107, Cimaf (32R) is GH¢87, and Ghacem (42R) leads the market at GH¢110.
Other sources report Diamond cement at GH¢75 and GH¢85, while Dangote ranges between GH¢92 and GH¢94.
The CMDC, established under the Ghana Standards Authority (Manufacture of Cement) Regulations, 2023 (LI 2480), regulates cement manufacture and promotes its wholesale and retail sales.
The Committee’s membership includes representatives from cement manufacturers, the Association of Ghana Industries (AGI), the Environmental Protection Agency, the Ghana Institution of Engineers, the Ministry of Trade and Industry (MoTI), and the Ministry of Environment, Science, Technology and Innovation.