Cement manufacturers in Ghana are said to have announced plans to raise prices, marking the second increase this year.
Dr. Stephen Debrah-Ablormeti, former Vice Chair of the Ghana Real Estate Developers Association, revealed that the price of cement, which had already gone up by GH₵10.00 in May, will see an additional increase of GH₵12.00 starting July 1.
Dr. Debrah-Ablormeti explained that cement manufacturers communicated their decision to hike prices just days ago.
“Effective July 1, the price of cement will rise once again,” he said.
He emphasized the significant impact this increase will have on construction costs.
“Given that cement accounts for approximately 70% of building materials, an increase in cement prices leads to a corresponding rise in the cost of blocks, concrete, and plastering materials,” he noted.
“A project that starts in January can experience a 30-45% cost increase by December due to these price hikes.”
In addition to the rising cement prices, Dr. Debrah-Ablormeti highlighted that the cost of iron rods has also surged by 28% over the past two months.
This further exacerbates the financial burden on developers.
“Managing costs as developers is becoming increasingly challenging. We support the efforts of the Honorable Minister to address this issue and create a fair competitive environment in the market,” he stated.
In response to the situation, Trade and Industry Minister K.T. Hammond has announced his intention to proceed with the implementation of a legislative instrument (L.I.) designed to regulate cement prices in Ghana.
Despite a petition from the Chamber of Cement Manufacturers to delay the law, K.T. Hammond remains steadfast. He stressed the importance of the law in preventing exploitation by a cartel of manufacturers. A
ccording to the proposed L.I., violations by cement manufacturers could result in up to three years of imprisonment.
The move has faced opposition from the Minority in Parliament and various interest groups. Nevertheless, K.T. Hammond is determined to enforce the regulation to ensure fair pricing and protect consumers.