Business News of 2014-04-17

Price of cement likely to go down

The price of cement could soon come down following negotiations between government and some cement manufacturers.

The price of cement on the local market had gone up steadily over the past few months, largely due to increase in the cost of production.

A bag of cement, which was sold at 15 cedis in 2011, has seen a dramatic increase to almost 30 cedis, following the depreciation of the country’s currency.

Trade Minister, Haruna Iddrisu, admitted that industry players were facing a tough time with the current economic conditions.

They had agreed to publish the retail prices from Accra to Wa, the minister said.

“We have also agreed to meet in the next 60 days, because for them the justification for the increase is the depreciation of the cedi and other increases in cost that is associated with the production of cement.

“But they yielded to my request to reduce the price of cement by a certain percentage. Dangote by 5 percent, and GHACEM, 3 percent by downward review; so we should see the price still being around 23 to 27 cedis and not 30, as we are seeing on the market.''

Mr. Iddrisu also explained that government decided to intervene because of the impact on real estate and its attendant effect on persons in the chain of cement business.