Ghana is currently grappling with a nationwide cement shortage, leading to sharp price increases and raising concerns among stakeholders in the construction industry. The disruption in supply has been attributed to a combination of limited local production capacity, challenges in importing raw materials, and inconsistent power supply.
One of the country’s major producers, Dzata Cement, has reportedly halted operations due to ongoing maintenance and expansion works. The company aims to scale up production capacity but has not provided a definitive timeline for the resumption of full-scale operations.
Meanwhile, some distributors have been accused of hoarding cement supplies and inflating prices. Industry insiders suggest the hikes are not manufacturer-driven but rather a result of opportunistic behaviour in the distribution chain. Ghana’s reliance on imported clinker, the key raw material used in cement production, has further complicated the situation, making the country vulnerable to global supply chain disruptions.
To investigate the crisis, the Parliamentary Select Committee on Works and Housing embarked on a fact-finding mission, visiting the plants of major producers including Ghacem, Dangote,Dzata in Tema.
At Ghacem Ghana Limited, Managing Director Dr. Frank Huber briefed the committee on current operations. He emphasized that while manufacturers set prices based on market conditions, Ghacem remains committed to affordability and quality.
“Cement pricing is driven by manufacturers, but we always strive to deliver the best prices to customers. We are monitoring developments closely to inform future pricing decisions,” Dr. Huber said.
He also announced an upcoming launch of a new eco-friendly product, “Eco Cool Cement,” which promises a significantly reduced carbon footprint and greater local value chain integration to minimize import dependency.
Dr. Huber further assured the public that Ghacem works in close partnership with the Ghana Standards Authority to maintain high product standards.
After the tour, Committee Chairman Vincent Oppong Asamoah addressed the media, stating that while Ghacem and Dangote are actively producing cement, Dzata’s temporary shutdown has compounded the shortage.
“Despite claims by manufacturers that production has increased over last year, we are alarmed by persistent shortages and price hikes, especially in areas like Sunyani and other northern regions,” he noted. “Some people appear to be exploiting the situation. Since pricing is driven by supply and demand, our focus should be on encouraging greater production. We will meet with the Minister for Trade and Industry to chart a path forward.”
There are growing calls for the Ministry of Trade and Industry and relevant regulatory agencies to step in and intensify monitoring of distribution networks to prevent profiteering and ensure stable supply.
Story by: Osman Issah Abadoo
