Cement Prices Continue to Rise Despite New Legislative Instrument – GREDA

Stakeholders in Ghana’s real estate sector are expressing concerns that the recently enacted Legislative Instrument (L.I.) aimed at regulating cement prices has not curbed the rising costs of building materials, including cement.

Passed on September 5, 2024, the regulation was intended to stabilize cement prices and alleviate financial pressure on developers. However, many industry players claim that prices have continued to climb, raising questions about the law’s effectiveness.

Initially, the L.I. included a provision requiring cement manufacturers to obtain government approval before setting prices. This provision was ultimately removed following significant pushback from manufacturers and some members of the public.

Despite the challenges, the L.I. was enacted after 21 parliamentary sittings, with support from Trade and Industry Minister K.T. Hammond.

The Ministry of Trade and Industry has promised that the legislation will lead to lower cement prices nationwide. However, the Ghana Real Estate Developers Association (GREDA) is dissatisfied with how the law has been implemented.

Samuel Amegayibor, Executive Secretary of GREDA, expressed these frustrations during the launch of the Diaspora Property Expo 2025 on November 21.

“Since the L.I. on cement was passed, we have not observed any significant changes. Prices have even increased since its launch,” he stated. “From our interactions with manufacturers, it feels as if no L.I. has been enacted at all. We’re continuing business as usual, and it’s unclear when any real effects will take place.”

Amegayibor emphasized the expectation that the law would take effect immediately, expressing uncertainty about the responsibilities of manufacturers, wholesalers, and dealers under the new regulations.