Ghana’s persistently high cement prices remaining above GH₵100 per 50kg bag despite gradual cooling of other commodity costs reflect structural economic pressures rather than industry profiteering, according to policy think tank IMANI Africa.
The analysis counters recent accusations by officials and citizens blaming producers for capitalizing on construction demand, arguing that complex upstream factors sustain elevated pricing.
IMANI’s policy brief, cited by The High Street Journal, identifies imported dollar-priced clinker as a primary driver, with exchange rate volatility directly impacting input costs.
Additional layers include rising transportation expenses linked to fuel prices, elevated import duties, port charges, surging industrial electricity tariffs, and nationwide inflationary trends affecting logistics and manufacturing.
The think tank cautioned against government price regulation proposals, warning such interventions could distort supply chains, disincentivize investment, and force smaller producers out of the market.
“Artificially setting prices without addressing root causes is economically unsound and potentially dangerous,” stated the brief, noting controls might ultimately harm consumers through informal markups or reduced competition.
Instead, IMANI urged targeted reforms: reducing import duties on clinker and raw materials, sustaining the cedi’s appreciation to curb forex volatility, lowering industrial energy tariffs, and fostering market competition by easing entry barriers for new producers.
The group emphasized that cement costs mirror Ghana’s broader economic challenges, asserting that macroeconomic stabilization—not price controls—will naturally correct pricing over time.
