Ghana’s housing deficit, estimated at over two million residential units, the highest in West Africa continues to widen as stubbornly high cement prices threaten to stall development and derail affordability efforts.
Despite recent gains of the cedi against the US dollar, cement manufacturers have not reduced prices, creating mounting frustration among developers and homebuyers alike.
According to Samuel Amegayibor, Executive Secretary of the Ghana Real Estate Developers Association (GREDA), the situation has become untenable. Speaking to local media, he expressed concern over what he described as the “unfair and greedy” pricing practices of cement producers.
“Cement producers are too greedy and not fair to the system,” he said.“Let’s say a real estate developer had indexed the price of a property at US$100,000 when the exchange rate was around GHS16 or GHS17 to the dollar. Today, with the rate at about GHS12, the cedi equivalent of what the developer receives is much lower, yet the prices of key building materials remain high.”
Unchanged prices despite currency stability
Even with currency stabilization, retail prices of cement remain steep. Ghacem’s 42.5R cement currently sells at GHS118–120 per bag in Accra, while Supacem and Dangote are priced at GHS110, and CIMAF and Empire Cement retail at around GHS100.
Developers warn that such pricing is unsustainable, as cement alone accounts for nearly 40% of total construction costs. The continued increase is forcing some builders to scale back projects, postpone new developments, or pass costs to buyers—further exacerbating the country’s housing affordability crisis.
“We can’t bridge the housing gap if materials remain this unaffordable,” GREDA President emphasized.
Industry impact and policy implications
The high cost of cement doesn’t just affect developers; it trickles down the entire housing ecosystem, raising the prices of finished homes, inflating rent, and pushing affordable housing further out of reach for ordinary Ghanaians.
Experts say limited competition in cement manufacturing, high energy tariffs, and supply chain bottlenecks are contributing factors. GREDA and other stakeholders are calling on government to engage manufacturers and explore price regulation mechanisms to safeguard both the industry and the public.
Building a sustainable path forward
To achieve its national housing goals, Ghana must address material pricing and production efficiency. Encouraging local manufacturing, improving energy cost structures, and fostering fair trade practices will be key in ensuring long-term stability in the real estate sector.
As Amegayibor concluded, “If developers cannot build affordably, Ghanaians cannot buy affordably. The solution must begin with the materials that build our homes.”
