Economy

Cement prices surge above ¢80 as cedi depreciation bites manufacturers

1 Mins read

Cement prices surge above ¢80 as cedi depreciation bites manufacturers

The price of cement surge above ¢80 per a 50 kilogramme bag as inputs costs of the manufacturers rise.

This is about 10% increase over the last price adjustment in almost two months ago.

Checks by Joy Business at some retail dealers indicate that the price of cement vary from ¢77 to ¢85 per a 50 kilogramme bag.

Similarly, it varies among the various dealers including GHACEM, Diamond and Dangote. However, the price of Dzata cement is lower

The increase in the price of cement indicates that the cost of construction, particularly building will go up.

This will trigger increase in the price of real estate as well as housing rent across the country; but depends on the location of the building.

Why the increase?

The increase has become possible because of the rising input costs as a result of the depreciation of the cedi to the US dollar.

Some of the materials used in producing the cement are imported, hence the increasing cost of operations.

When the factory price (wholesale price) of a 50 kilogramme of a bag of cement was about ¢59.00, it was based on an exchange rate of about ¢7.60 in June 2022.

Some of the manufacturers also told Joy Business that it has been very difficult to absorb all the rising costs of operations, and therefore there is the need to share some of the burden with consumers.

They also claimed taxes or levies imposed on the raw materials at the ports is too high.

Cement price increases to ¢73 as manufacturers blame cedi depreciation

The price for a 50 kilogramme bag of cement shot up to ¢73 per bag on August 30.

The manufacturers blamed the increment on the free fall of the cedi which has not ceased since then.

 

 

Source: Myjoyonline.com

Related posts
AfricaEconomyHeadline

Top 5 economies in Sub-Saharan Africa to watch out for in 2023, according to IMF

2 Mins read
Top 5 economies in Sub-Saharan Africa to watch out for in 2023, according to IMF Its no secret that sub-Saharan Africa is…
AngolaEconomyEthiopiaHeadline

IMF projects Ethiopia, Angola economies to overtake Kenya

4 Mins read
IMF projects Ethiopia and Angola economies to overtake Kenya Kenya is set to be replaced as the third-largest economy in sub-Saharan Africa…
AfricaEconomyHeadline

Top 10 African countries with the highest economic prospects for 2023

2 Mins read
Top 10 African countries with the highest economic prospects for 2023 A number of economic challenges in 2022, including a weakened external…

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!