The depreciation of the Ghanaian cedi against the US dollar is the main driver behind the recent surge in cement prices in Ghana[1][3][4][5]. Cement manufacturers rely heavily on importing raw materials like clinker priced in dollars, and as the cedi falls, their costs increase significantly[1][3]. This leads cement producers to raise prices to partially offset the higher manufacturing expenses due to the currency devaluation[3].
The Member of Parliament Murtala Mohammed noted that the government cannot solely blame cement makers for the price hikes, as the cedi depreciation is largely responsible when these key inputs are purchased in dollars rather than cedis[4]. Cement dealers also cited the weak cedi and rising fuel prices as the main reasons a bag of cement that cost around 37 GHS in the first three months of the year now sells for much higher[2].
Citations:
[1] https://www.theghanareport.com/blame-cedi-depreciation-for-cement-price-hikes-cocmag/
[2] https://www.faapa.info/en/cement-dealers-blame-rising-cost-on-weak-cedi-fuel-prices/
[3] https://www.myjoyonline.com/cedi-depreciation-shot-up-cement-prices-cocmag/
[4] https://www.myjoyonline.com/government-cannot-blame-manufacturers-only-for-cement-price-hikes-murtala-mohammed/
[5] https://3news.com/featured/cement-producers-insist-cedi-fall-is-main-cause-of-high-prices/