Building Materials Prices Shoot Up

CITY & BUSINESS GUIDE can confirm that prices of cement and other building materials have been increased astronomically.

A visit by this paper to some shops in Accra recently revealed that a bag of cement was being sold at GH¢17 as against GH¢15 a week ago.

Elizabeth Okoe, a cement seller at Kantamanto in Accra, in an interview, said a bag of cement went for between GH¢12 and GH¢13 about three weeks ago.

She said the sudden increase in the price of a bag of cement from GH¢15 to GH¢17 had negatively affected operators.

“The price increases were first orchestrated by manufacturers and passed onto distributors who also add their own percentage before it finally gets to the retail points.”

These manufacturers include Ghana Cement Limited (GHACEM), West Africa Cement Limited based in Aflao, Dangote Cement and Fortress Cement.

“GHACEM used to sell cement at an exorbitant price but they are now selling it at the same price as the other companies.”

“The price hike has affected sales this week since a lot of buyers cannot buy the quantities of cement they budgeted for before leaving home.

“Buyers who get to know of the prices for the first time cannot patronize as many products as they want. Many people, who have gone for loans to build, have extended the construction periods unduly.”

According to her, sellers and buyers have expressed concern about the development.

20 pieces of galvanized roofing sheets are now going for GH¢140 instead of GH¢130 previously while the same quantity of aluminum roofing sheets is now selling between GH¢350 and GH¢400 instead of GH¢320 a week ago.

The same quantity of roofing sheets from Aluworks is currently selling at GH¢480 instead of GH¢450, a week ago.

Bartoline oil paint is now selling at GH¢80 instead of GH¢70. One and half kilos of nails are going for GH¢40 instead of GH¢23 while roofing nails are now going for GH¢10 instead of GH¢8 previously.

Door locks, which used to sell between GH¢12.50 and GH¢18, are now going for between GH¢18 and GH¢ 25.

Mrs Okoe said, “Since the increment in the price of building materials last week, some traders have abandoned trading.

“A man visited my shop last week to place order for some cement, nails and paints. He made me calculate the quantity that he wanted, paid half of the money and returned on Monday to pay the rest.

“He was shocked to learn of the new prices and I wish you would have been here to see the anguish on his face. He could not add the difference. He was also buying on wholesale to send the items to Takoradi to sell.”

According to the trader, the man quickly ordered her to give him his money.

“If he had bought the products, he would have forfeited his profit.

Patrick Acheampong, another trader who deals in roofing sheets near the UTC area, Accra, said the increase was alarming since some traders could hardly make income.

“The increase is creating more problems for us because we have to take care of our families and also pay school fees, among other things,” he lamented.

Mr Acheampong said the depreciation of the Ghanaian Cedi against the U.S dollar had contributed immensely to the increase in the price of building materials such as roofing sheets, paints, door locks and shovels.

He therefore called on government to address the problems so as to stabilize the market.