Despite directives from the Minister of Trade and Industry to curb escalating cement prices, Ghana is witnessing a significant rise in cement costs, causing substantial disruptions in the real estate market and driving up rental costs in Accra.
An investigation by GBC Ghana Online has revealed that cement prices have 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. However, as of June 4, 2024, prices have soared to around GH¢110, according to reports from dealers in Pokuase.
Specific prices from various dealers highlight 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 May 15, 2024, the Ministry issued a statement urging the Cement Manufacturing Development Committee (CMDC) to ensure compliance with this directive and to standardize cement prices across the country.
The CMDC, operating 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 stabilize cement prices and alleviate the burden on the housing sector and the broader economy.