2017 price of cement in Ghana
The cement industry in Ghana has been one of the most important sectors of the country’s economy for decades, playing a major role in the development of the country’s infrastructure. It is a vital part of the national economy and its contribution to the nation’s Gross Domestic Product (GDP) is palpable.
The cement industry in Ghana is characterised by a high level of competition, with more than ten (10) cement manufacturing companies competing for a share in the market. The industry has managed to achieve a high level of efficiency and consume relatively low levels of energy. This has resulted in relatively low prices for cement throughout the country.
The cement industry in Ghana is comprised of three distinct segments: the integrated cement companies; the grinding and blending plants; and the ready-mix concrete producers. These three segments have contributed significantly to the growth of the industry and have helped it to develop in a way that ensures quality and reliability.
Cement brands in Ghana
- Ghacem Ltd, Harbour area, Tema Ghana
- CIMAF Ghana Cement Factory, Tema Ghana
- Permafix Industries, Accra Ghana
- CBI Ghana Limited, Tema Ghana
- Diamond Cement (Ghana) Limited, Ghana
- Durachem Ghana, Tema Ghana
- Western Diamond Cement Ltd. Takoradi, Ghana
- Dangote Cement Plc, Ghana
- Gasmenco Ghana Limited, Adenta, Ghana
2017 price of cement in Ghana
2017 was an interesting year for cement prices in Ghana. With the introduction of new cement brands to the market and global economic uncertainties, prices saw some major fluctuations.
The most prominent brand of cement in Ghana is Dangote Cement, which boasts a market share of around 75%. In 2017, the average price of Dangote Cement was between GHS 30 and GHS 35 per 50kg bag. However, the prices varied from area to area, and even from shop to shop, depending on the availability of the product.
A second brand, Diamond Cement, also entered the market with a lower price point of around GHS 25 to GHS 30 per 50kg bag. This price was significantly lower than what was being offered by Dangote Cement.
There were other brands of cement that were available in Ghana in 2017. These included Durachem, SuperCem, CrownCem, among others. The average prices of these brands ranged from GHS 20 to GHS 30 per 50kg bag, depending on the availability and quality of the product.
Factors that influenced the price of cement in 2017
Cement prices in Ghana are determined by a number of factors. In 2017, the cost of cement in Ghana was highly influenced by the following external and internal factors;
1. Exchange rate fluctuations
Ghana is a country highly dependent on imports and exports. This means that the values of the Ghanaian Cedi and the US Dollar or other foreign currencies greatly influence the cost of cement in the country. When the value of the Cedi goes down, the cost of imported cement rises, resulting in higher cement prices in Ghana.
2. Raw materials
One of the main components of cement is clinker, which is usually imported from other countries. The cost of clinker and other raw materials makes up a significant portion of the cost of cement in Ghana. Consequently, changes in the prices of raw materials also affect the final cost of cement in Ghana.
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3. Transport costs
Transport costs form a significant part of the total cost of cement in Ghana. In 2017, transport costs rose due to the increase in fuel prices and the depreciation of the Cedi. These changes resulted in higher transport costs, which increased the cost of cement in the country.
4. Government regulations
Government regulations can also affect the cost of cement in Ghana. In 2017, the government implemented a number of taxes on cement producers and retailers. These taxes increased the cost of cement in the country.
5. Competition
The level of competition in the cement industry in Ghana also affects the prices of cement. When there is more competition, companies tend to offer discounts and lower prices in order to attract customers.
Comparing prices of cement in Ghana from 2017 to present
When comparing prices from 2017 to present, it’s clear that prices have increased significantly. For example, according to the Bureau of Labor Statistics, the price of goods and services rose by 2.6% and more since 2018 and beyond. The Consumer Price Index for all urban consumers (CPI-U) rose by 2.4% and more from 2018 till date.
The biggest increases in prices can be seen in housing, energy, and transportation. Housing prices increased the most, rising by 3.7%, while energy prices increased by 3.2% and transportation prices increased by 2.7%.
Food prices also rose significantly after 2017, increasing by 1.7% and more. Prices for medical care services, apparel, and recreation also increased significantly.
Reasons for price changes
The main reason is the increase in the cost of labor. As the cost of labor increases, businesses pass the cost along to consumers in the form of higher prices.The cost of raw materials and commodities was also on the rise. Many of these materials are in short supply, leading to higher prices.
Inflation was also a factor. Inflation is the gradual increase in prices across the economy, and it is caused by an increase in the money supply and the cost of credit. Inflation has been relatively low in recent years, but it has been slowly increasing.
How much is 1 bag of cement in Ghana now?
It is the year 2023 and the price of a 50kg bag of cement in Ghana is to increase by more than GHS 70. This is due to inflation in the country from 2017 till now.
Conclusion
2017 was an interesting year for cement prices in Ghana. With the introduction of new brands to the market and global economic uncertainties, the prices of cement in Ghana saw some major fluctuations. The availability of the product, the cost of production, and demand and supply were the main factors that affected the prices of cement in Ghana in 2017.
