CitizenOne can confirm that the price of cement will increase from the current GHC 59 per 50kg bag to almost GHC 80 by close of this year. According to our information, a new price list is likely to be communicated to the public on Monday.
"This has been occasioned by the increasing cost of production due to the free fall of the cedi against the dollar coupled with local factors including taxes, increase in utility tariffs and fuel", an official in a top cement manufacturing company told our reporters on condition of anonymity.
A similar report by Joy Business purged the new price between GHC 68 and GHC 79 depending on the grading and this takes effect on Monday.
"Cement prices are expected to be increased from next week.
Joy Business is learning that the wholesale price of a 50 kilogramme bag is expected to hit a minimum of ¢68.00 and maximum of Ghc 79 depending on the grade from the current price of ¢59.00", Joy Business reported.
Increment in cement prices affects cost of building including roads, bridges and buildings. It also affects rent.
Ghana's premier cement producer Ghacem used to dictate the prices of cement until 2007 when Dangote cement was introduced. Dangote cement took over the market within a short while forcing Ghacem to reduce the prices drastically. By 2015, Dangote was controlling about 40% of the market with Ghacem and other brands managing the remaining 60%.
However, in 2018, the government took steps to curtail Dangote cement. The government decided to close down cement distributers which had no production plants in Ghana. This affected Dangote as it's production houses were in Nigeria and South Africa.
Currently Dangote is doing bagging in Ghana hence permitted to distribute cement.
Another company that was able to hit the cement market is Dzata Cement. This is the first cement company wholly owned by a Ghanaian, Dr. Ibrahim Mahama. Ibrahim is a younger brother to former President John Mahama.
He set up his cement production factory in 2016. However upon change of government, the Nana Addo lead government revoked his operating license for unknown reasons. It took several interventions including parliament for government to issue to him a new permit. Dzata Cement started full operation last year. It has since become the most sought after cement brand.
At one point, parliamentary select committees on industrialisation and works encouraged the government to grant Dzata Cement tax holidays to enable it employ more people. This was made known by Hon. Osei Kyei Mensah Bonsu who is the majority leader.
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