Cement price increment worst I have seen in recent times – Executive Secretary, GREDA

The Executive Secretary of the Ghana Real Estate Development Association (GREDA), Sammy Amegayibor, has expressed deep concern over the recent increment in the price of cement, describing it as the worst he has seen in recent times.

This significant increase is causing substantial disruption to the operations of those in the building and construction industry, where cement is a critical component.

Speaking on JoyNews’ News Night on Thursday, May 16, Mr. Amegayibor emphasized the substantial impact of the price hike on their operations and market offerings.

He explained that unlike supermarket items, where cost elements can be quickly factored in, the construction industry faces a unique challenge. “Our case, it’s not like that. You start a project to the foundation and you will be paying cement at 60 cedis – you get to the block work level, it goes to 70 cedis… now you’re doing plastering and it goes over 100 cedis. How do you even determine the cost of the building?” he questioned.

Mr. Amegayibor noted that the recent surge in cement prices has made it extremely difficult to estimate and manage the overall costs of construction projects.

This unpredictability poses a severe threat to the viability of their projects and the broader real estate market.

He highlighted that while the prices of building materials have risen in the past, the current spike in cement prices is unprecedented and particularly harmful.

Addressing the directive issued by Trade and Industry Minister K. T. Hammond to tackle the price increase, Mr. Amegayibor acknowledged the ministry’s recognition of the issue.

“And so expressing of concern – it’s fair and it sounds refreshing. However, issuing a directive of this nature, one will have to ask what are the fundamental causes of the cement price increment than to just issue a directive.”

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Mr. Amegayibor argued that while a reduction in cement prices would be welcome, it is essential to address the underlying factors driving the increase.

“If you reduce the price of cement today/tomorrow, we will be very happy, but we have to be very fair because we are all in the business of manufacturing. So one wonders if the fundamental issues that caused the cement prices to go up have not been addressed or mentioned by the Minister and only issuing directives for it to come down,” he added.

He suggested that a thorough investigation into the root causes of the price hike is necessary to find a sustainable solution.

The industry, he noted, would benefit more from a comprehensive approach that tackles these fundamental issues rather than temporary measures.

The recent cement price increase is causing ripple effects across the construction sector.

Builders and developers face mounting challenges in managing costs and timelines, which could ultimately affect housing prices and availability.

This situation has prompted calls for a more in-depth examination of the factors influencing cement pricing, including supply chain issues, manufacturing costs, and market dynamics.

The real estate sector in Ghana, a significant contributor to the economy, is currently navigating these turbulent waters with caution.

The industry stakeholders are keenly watching how the government and relevant authorities will address this pressing issue.

Ensuring price stability in essential building materials like cement is crucial for maintaining the momentum of ongoing and future construction projects.

In conclusion, the unprecedented rise in cement prices is a severe concern for the Ghanaian real estate industry.

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The Executive Secretary of GREDA, Sammy Amegayibor, has voiced the industry’s frustrations and highlighted the urgent need for a sustainable resolution.

The real estate sector now awaits effective interventions that will stabilize prices and support the continued growth and development of the industry.

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