Tenants to pay more; as cement price skyrockets

Tenants should prepare to pay more rent in the wake of the recent increase in the price of cement, the main ingredient used in the construction of houses. The determination of rent has been at the behest of landlords over the years.

Most of them demand outrageous rent from tenants, especially in Accra and other regional capitals instead of adopting monthly payments.

Owing to the development, workers with meager take-home salaries settle for houses at the outskirts of Accra and its surrounding villages since they are unable to pay the high rent, while others opt for uncompleted buildings (hwe so ma me). Cement, which sold between GH¢25 and GH¢28 per 50 kilogramme bag about two weeks ago, is now selling at approximately GH¢35.

GHACEM, the leading producer of the product in Ghana, noted that as a result of the continuous depreciation of the Ghana cedi against major currencies, it has increased the ex-factory price of the GHACEM Super Rapid cement to GH¢26.790 per bag for registered distributors, which took effect from July 5, 2014. The company has also published the retail prices of the product at certain key markets across the country.

The recommended end-user prices are Accra (GH¢30 – GH¢30.40; Tema (GH¢29.50 – GH¢29.80; Kasoa (GH¢30.00 – GH¢30.40); Winneba (GH¢30.20 – GH¢30.50); Cape Coast (GH¢30.20 – GH¢30.60); Takoradi (GH¢29.50 – GH¢29.80); Tarkwa (GH¢30.30 – GH¢30.60); Kumasi (GH¢31.30 – GH¢31.60); Koforidua (GH¢30.30 – GH¢30.60). The others are Tamale (GH¢33.40 – GH¢33.70); Bolga (GH¢33.50 – GH¢33.80); Wa (GH¢34.00 – GH¢34.30) and Sunyani (GH¢31.60 – GH¢32.00).

The excessive spending by government has led to the rapid depreciation of the cedi against major foreign currencies. As part of plans to exact more revenue from the taxpayer to perpetrate its extravagance, Government recently introduced a 17.5 percent VAT/NHIL.

Dangote Cement, a Nigeria-based producer who has been bagging its products for the local market in Ghana, has also announced that it is contemplating reducing the quantity of cement it bags in the country. Stephen Zoure reports that many residents of Tamale have expressed dissatisfaction with the high cost of building materials within the metropolis.

There was an abnormal increase in the prices of building materials in the city a fortnight ago, which is said to be affecting the sale of the items in most shops. Cement and iron rods, the most patronized commodities, are in short supply at the major outlets in Tamale.

A bag of cement, which was being sold for GH¢27 a week ago, now sells between GH¢35 and GH¢40. Checks by the paper also revealed that a bucket of paint, which used to sell at the price of GH¢30, now goes for GH¢41.

A gallon of paint prior, which was being sold for GH¢15, now goes for GH¢22. Many people are also unhappy with the astronomical increase in the price of sea sand, which is also being sold at GH¢220 from its previous price of GH¢120.