Cement prices in Ghana have seen a significant increase, despite directives from the Minister of Trade and Industry aimed at curbing this rise.
Cement prices in Ghana have seen a significant increase, despite directives from the Minister of Trade and Industry aimed at curbing this rise. The hike is causing substantial disruption in the real estate market and driving up rental costs in Accra.
Cement prices in Ghana have seen a significant increase, despite directives from the Minister of Trade and Industry aimed at curbing this rise. The hike is causing substantial disruption in the real estate market and driving up rental costs in Accra.
A recent investigation by GBC Ghana Online has shown that the cost of cement has surged dramatically over the past week. In May 2024, cement was priced between GH¢85 to GH¢90 per bag, depending on the brand and quality. As of 4 June 2024, prices have escalated to about GH¢110, based on reports from dealers in Pokuase.
Specific prices from various dealers reveal the extent of the increase: Dzata cement (42R) is now selling at GH¢108, Cimaf cement (42R) at GH¢107, Cimaf cement (32R) at GH¢87, and Ghacem cement (42R) at GH¢110, the highest in the market. Meanwhile, Diamond cement ranges from GH¢75 to GH¢85, and Dangote cement is priced between GH¢92 and GH¢94.
In response to these rising costs, Minister of Trade and Industry Kobina Tahir Hammond recently called for an immediate rollback of the price increases. On 15 May 2024, the Ministry issued a statement urging the Cement Manufacturing Development Committee (CMDC) to ensure compliance with this directive and to standardise cement prices across the country.
The CMDC, which operates under the Ghana Standards Authority (Manufacture of Cement) Regulations, 2023 (Ll 2480), is tasked with regulating cement production and distribution. The Committee includes members from cement manufacturing companies, 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.
Despite the Ministry’s intervention, the rapid price hike suggests either a disregard for the directive or underlying issues that have not been addressed. This situation is causing significant strain on the construction industry and pushing rental prices in Accra to new heights, placing additional financial stress on residents.
As the CMDC continues to address these challenges, there is a pressing need for effective solutions to stabilise cement prices and alleviate the burden on the housing sector and the broader economy.