Cement prices reduced as cedi strengthens – Trade Minister

Elizabeth Ofosu-Adjare, the Minister for Trade, Agribusiness, and Industry, claims that the current stability in the currency rate has helped to lower cement prices, giving the building industry some respite.

Prior to the present administration taking office, 42.5R cement sold for approximately GH¢118 per bag, while 32.5R cement sold for approximately GH¢113, according to Elizabeth Ofosu-Adjare. Since then, she added, prices have decreased, with 32.5R cement costing between GH¢80 and GH¢85 and 42.5R cement selling for roughly GH¢107.

Following a meeting with cement producers on Monday, January 19, the Minister stated: “It will be recalled that by the end of 2024, before the National Democratic Congress (NDC) came to power, cement was sold around GH¢118 for the 42.5R and GH¢113 for 32.5R. Over the period, we’ve had discussions with them, and prices have come down. Now you realise that cement is sold at GH¢107 for 42.5R, and between GH¢80 and GH¢85 for 32.5R.”

“One of the factors is that the exchange rate has come down. We have a very stable macroeconomic situation in this country, and so the price of cement has been very stable. We have asked the manufacturers to keep the prices reasonable, and we know what goes into the cost of their production. The exchange rate is one factor. They also have issues of demurrage and electricity, but they try to give prices that reflect the stability that we have” she stated.

According to the Minister, cement producers have pledged to keep pricing reasonable.
“They have indicated to me that, as much as possible, they will try to keep the prices at affordable rates so that we can all enjoy the space. After all, they produce for us, and as much as they want to make a profit, they want to make sure that consumers also enjoy the stability we have. We don’t have any reports of an increase in the prices of cement,” she stated.

The Minister further reassured the public that the government will keep an eye on the sector, pointing out that producers have pledged to maintain price stability in the face of improved macroeconomic conditions.

“We want to assure the general population that the industry is here. They are willing to work with us, as they have been doing, to make sure that prices are fair. I have to commend them highly for assuring us that they will comply with the law to make sure that if there is anything at all—apart from the dollar—that affects their price, they will let us know so that we can all discuss and agree on a price that is fair to everybody. Ghana Standards Authority will continue to work on standards to ensure that consumers get what they pay for” she added.

Source: Ghanatodayonline.com