Cement manufacturers petition government over surge in raw material costs

The Cement Manufacturers Association of Ghana has formally petitioned the Ministry of Trade, Agribusiness and Industry to urgently reconsider recent increases in Free on Board (FOB) values applied to key raw materials used in cement production. The appeal comes amid growing concern within the industry about the potential economic consequences of the new pricing adjustments.

In a letter dated Monday, April 13, and addressed to the sector minister, the association indicated that the revised FOB values were implemented without sufficient consultation with stakeholders. According to the group, this lack of engagement has resulted in unexpected cost burdens for local cement producers, many of whom are already navigating challenging operating conditions, including currency fluctuations, rising energy costs, and supply chain constraints.

The association specifically highlighted significant increases in the cost of clinker and granulated blast furnace slag—two essential inputs in cement manufacturing. It noted that these price hikes appear to be inconsistent with current global market trends, where prices for similar materials have remained relatively stable or, in some cases, declined. This discrepancy, the association argued, raises concerns about the basis for the revised FOB valuations.

Furthermore, the group warned that the increased FOB values would inevitably lead to higher import duties and taxes, thereby pushing up overall production costs. Manufacturers may be left with little option but to pass these additional expenses on to consumers in the form of higher cement prices. Such a development, the association cautioned, could have a ripple effect across critical sectors of the economy, particularly construction, housing, and infrastructure development, where cement is a key input.

The association stressed that rising cement prices could slow down ongoing building projects, increase the cost of housing delivery, and hinder government-led infrastructure initiatives. In the broader context, it warned that these impacts could dampen economic growth and undermine efforts to promote industrial expansion and national development.

The petition, signed by Chief Executive Officer George Dawson-Ahmoah, called for immediate dialogue between the government and industry stakeholders to address the issue. It urged the Ministry to work collaboratively with manufacturers to develop a fair, transparent, and sustainable pricing framework that reflects both global market realities and local industry conditions.

While raising these concerns, the association reaffirmed its commitment to supporting Ghana’s industrialisation agenda. It emphasized the importance of maintaining a stable and competitive operating environment for cement producers, noting that the sector plays a vital role in job creation, infrastructure development, and overall economic progress.