The latest GH¢12 increase in cement prices is beginning to weigh heavily on demand, with retailers reporting declining sales and fewer customers visiting their outlets.
The price adjustment, which affects major cement brands, follows the introduction of a corresponding surcharge by the Chamber of Cement Manufacturers, Ghana.
The Chamber has explained that the surcharge is intended to enable cement manufacturers to recover clinker demurrage costs incurred as a result of severe congestion at the Tema Port.
However, cement retailers say the increase is already affecting customers, particularly those operating with limited budgets.
Cement retailer Vida Okyere said the latest adjustment is making it increasingly difficult for some customers to maintain their usual purchasing volumes.
According to her, customers who had budgeted for a specific number of bags are now being forced to either reduce their purchases or postpone buying altogether.
“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 the impact becomes significant for customers buying in larger quantities.
“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 increase has already resulted in a noticeable decline in sales.
He questioned why cement prices remain elevated despite the recent decline in the value of the US dollar, which he suggested could ordinarily help reduce some import-related cost pressures.
“It has been increased but I know the dollar is down but I don’t know why. Maybe it’s the price of the clinker or maybe something like that, I don’t know,” he said.
Mr Boamah said retailers have little control over the situation because the factories determine the prices at which cement is supplied.
“But 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 stated.
He said the effect on demand has been immediate.
“Now sales have dropped. Normally, you know, when the price of cement goes up, sales drop drastically,” he added.
The latest cement price increase has also triggered calls for government intervention, with retailers warning that continued increases could hurt consumers and businesses across the construction supply chain.
Retailer Kwaku Antwi said higher cement prices could discourage customers from making purchases and ultimately affect businesses that depend on steady demand.
“Nation-building is a shared responsibility. However, I believe the government should intervene in the recent increase in cement prices,” he said.
He argued that stable cement prices would encourage construction activity and help retailers maintain stronger sales.
“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 GH¢12 surcharge could have implications beyond cement retailers and consumers, particularly across Ghana’s construction sector.
For individuals building homes, as well as contractors and property developers, higher cement prices could mean increased construction costs and the need to revise project budgets.
Projects already underway could also face additional financial pressure if contractors had based their estimates on previous cement prices.
At the retail level, falling demand could further squeeze profit margins as customers respond to higher prices by purchasing fewer bags or delaying construction projects.
