This critical building material, essential for infrastructure development and residential projects, has seen its cost escalate substantially over the past few years.
Meanwhile, Franklin Cudjoe, president of IMANI Africa, has expressed concern over the rising cost of cement.
In a post on X dated June 6, 2024, he mentioned recent reports indicating that a bag of cement had reached 108 Ghana cedis.
He criticised President Nana Addo Dankwa Akufo-Addo's government for seeming clueless amid these price hikes.
Various factors contribute to this upward trend, each interwoven into the complex economic and industrial fabric of the country.
- Demand and supply dynamics: If the demand for cement exceeds the supply, prices are likely to increase. This could be due to increased construction activities, infrastructure projects, or even export demands.
- Cost of production: Any increase in the cost of production, such as rising energy costs, transportation costs, or raw material costs, can lead to higher prices for cement.
- Exchange rates: Fluctuations in currency exchange rates can affect the cost of imported materials used in cement production. If the Ghana Cedi weakens against other major currencies, the cost of importing these materials increases, potentially leading to higher prices for cement.
- Government policies and taxes: Changes in government policies, regulations, or taxes can impact the cost of production and distribution, which may influence the final price of cement.
- Market competition: If there are only a few cement manufacturers in the market, they may have more control over pricing, leading to higher prices. Lack of competition can reduce incentives for manufacturers to keep prices competitive.
- Infrastructure challenges: Issues such as poor transportation infrastructure or disruptions in the supply chain can increase costs for manufacturers, which may then be passed on to consumers through higher prices.
- Global economic trends: Cement prices can also be influenced by global trends, such as changes in the cost of energy, fluctuations in global demand for construction materials, or geopolitical factors affecting the supply chain.