The cost of the basic raw material for the production of cement, clinker, according to him has experienced a significant increase in recent past which has resulted in the increase of cement, and this is caused by both internal and external factors.
He said the situation is been compounded by the cost of freight which has effected everything globally, been occasioned largely by disruption in the global supply chain caused by the COVID-19 pandemic and subsequently by Russia invading Ukraine.
“Further, the depreciation of our local currency against the United States dollars and the increase in prices of petroleum products as well as the cost of electricity have also contributed to the high cost of production of cement.”
“In addition, the supply of bags for cement has also been disrupted as a result of the conflict. All these factors have accounted for the increases in the prices of cement on the local market,” he said.
Minister for Trade and Industry, Mr. Alan Kwadwo Kyerematen, made this disclosure on the floor of Parliament on Tuesday, June 28, 2022, when he responded to a question on why prices of cement has increased too high. A question that stood in the name of the member for Bole Bamboi, Yusif Sulemana.
The Minister also hinted that both the Economic Management Team and Cabinet discussing many measures that would help to address the increase of prices of cement and other imported materials, including iron rods.
The Bole Bamboi MP comparatively urged with prices from other African countries which according to him, have low cement prices as compared to Ghana, though they are all feeling the impact of these two global problems.
He said “Mr. Speaker, cement sold is in Nigeria at an equivalent of US$5.1 and US$5.95 in Zambia. In Ghana as we speak the price of cement is about $7.2 and if the Ukraine-Russia war, as well as COVID 19, are the reasons, something could have been done about it.”
But the minister, Mr. Kyeremateng noted that the analysis by the Member is not reliable as compared to the records at the ministry as in respect of the ex-factory prices, but assured that cabinet and the economic management team will soon come out with measures to reduce the cost of production of cement which will in turn reduce prices of cement.
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