Cedi depreciation shot up cement prices – COCMAG

The Chamber of Cement Manufacturers (COCMAG) has justified the recent price hikes in cement products.

According to the chamber, the increase in the prices is largely as a result of the depreciation of the Ghanaian cedi against the US dollar and rising cost of production.

This comes after the Minister for Trade and Industry, K. T. Hammond, addressed the recent surge in cement prices by directing the Cement Manufacturing Development Committee (CMDC) to intervene immediately.

The Minister called for cement manufacturers in Ghana to reverse the recent price hikes immediately.

But in a statement signed by the Chief Executive Officer of the Chamber of Cement Manufacturers (COCMAG), Dr George Dawson-Ahmoah, the chamber explained that, the cement industry relies on importing raw materials priced in foreign currencies, particularly the dollar which has increased costs.

“Additionally, some tariffs, levies, and taxes imposed by other authorities such as the Ghana Ports and Harbours Authority are also dollar-denominated, further exacerbating expenses,” a part of the press release said.

COCMAG stated that, in order to ensure operational viability and product quality, it is necessary to adjust the prices of cement.

According to the chamber, although the new prices may affect consumers, there is a need to “partially offset increased manufacturing costs due to currency devaluation and other uncontrollable factors.”

The Chamber assured its costumers of providing quality cement at fair prices but acknowledged the potential for increase in prices of cement products.

It noted that once economic conditions stabilise, cement prices will normalise.

“Acknowledging the understanding and support of all stakeholders, the Chamber reaffirms its dedication to Ghana’s construction sector development amidst these challenges.”