The latest GH¢12 increase in the price of a bag of cement is beginning to slow activity across the retail market, with traders reporting that customers are cutting back on purchases or postponing construction projects altogether.
The increase, which affects major cement brands, follows a surcharge introduced by the Chamber of Cement Manufacturers, Ghana, to recover clinker demurrage costs incurred as a result of congestion at the Tema Port.
While manufacturers say the surcharge is linked to additional costs associated with port congestion, retailers say the sharp adjustment is now being felt directly by consumers, particularly households and small-scale builders operating with fixed budgets.
Cement retailer Vida Okyere said customers who previously arrived at outlets with plans to purchase a specific number of bags were now being forced to reconsider their budgets.
“Prices of cement increased last week by GH¢12 and it’s very bad. Customers are complaining because at first, when the cement was increased, it wasn’t up to GH¢12. It was maybe GH¢3 or GH¢4,” she said.
She explained that a customer who had budgeted to purchase 10 bags could now be unable to afford the same quantity following the latest increase.
“For instance, if the customers have a budget to buy 10 bags of cement, due to the increment, they will be compelled to lower their target or not make the purchase at all,” she added.
Another retailer, Eric Boamah, said the impact of the price adjustment had already become visible in the market, with sales declining since the increase took effect.
“Now sales have dropped. Normally, you know, when the price of cement goes up, sales drop drastically,” he said.
Mr Boamah also questioned why cement prices continued to rise despite the recent strengthening of the cedi against the US dollar, although he acknowledged that other production costs, including clinker prices, could be influencing the adjustment.
“When you go to the factory they will tell you that the price has been increased, so that is what is going on now,” he said.
Pressure on construction projects
The retailers’ concerns point to a broader challenge for Ghana’s construction sector, where cement remains one of the most important inputs for residential, commercial and infrastructure projects.
For households building incrementally, the latest increase could mean fewer bags purchased at a time, longer construction periods or delays in completing planned projects.
Contractors and developers may also face higher project costs where budgets were prepared before the latest adjustment, potentially resulting in revised quotations and increased overall expenditure.
The effect could extend beyond consumers to retailers, particularly if sustained high prices lead to weaker demand and slower turnover.
Retailer Kwaku Antwi therefore called for government intervention to prevent the price increase from having a wider impact on businesses and construction activity.
“Nation-building is a shared responsibility. However, I believe the government should intervene in the recent increase in cement prices,” he said.
He warned that continued price increases could discourage customers from buying cement and eventually affect the viability of businesses operating within the supply chain.
“If prices had remained stable, it would have encouraged more purchases. The increase could drive customers away, leading to lower sales and ultimately affecting our businesses,” he added.
The latest development has consequently renewed concerns about the extent to which rising input and logistics costs are being passed on to consumers.
Although the GH¢12 surcharge is intended to enable manufacturers to recover demurrage expenses resulting from congestion at the Tema Port, retailers say the immediate consequence is a reduction in purchasing power and demand.
For consumers already working within tight construction budgets, the increase could therefore translate into fewer bags per purchase and longer timelines for completing building projects.
