Mahama hails economic reforms as cement prices fall sharply in Ghana

President John Dramani Mahama has hailed Ghana’s ongoing economic reforms and industrial investments after announcing a sharp reduction in cement prices across the country, bringing significant relief to the construction and housing sector.

According to the President, cement prices have fallen by about 20 percent following a combination of macroeconomic stabilisation policies, fiscal discipline, and sustained engagement with industry stakeholders.

Speaking during the commissioning of a new $110 million calcined clay cement manufacturing plant in Tema, President Mahama described the development as evidence that sound economic management and private sector collaboration are yielding positive results.

“Through a mix of macroeconomic stabilisation, fiscal discipline and constructive engagement with industry stakeholders, we have started to see positive results in the cement space,” President Mahama said.

He added that the price reduction is already benefiting builders, contractors, and households across the country who rely heavily on cement for construction activities.

Relief for Construction and Housing Sector

President Mahama explained that cement prices had surged in 2024, reaching approximately GH¢120 per bag for 42.5 grade cement and GH¢113 per bag for 32.5 grade cement.

However, he said government policy reforms helped reverse the upward price trend.

“By July 2025, cement prices had fallen by about 20 percent, providing relief to builders, contractors and the housing construction industry,” he stated.

The President further noted that construction inflation has also shown signs of stabilisation, declining to 3.9 percent year-on-year in January 2026, reflecting broader economic recovery.

“These developments demonstrate the impact of prudent economic management and a strengthening domestic currency,” he said.

Industrial Investment Driving Local Production

President Mahama linked the price reduction partly to new investments in Ghana’s cement manufacturing industry, including the newly commissioned calcined clay cement plant in Tema.

He said the facility will help increase domestic cement supply while reducing Ghana’s dependence on imported clinker, which has historically increased production costs.

“This investment demonstrates that when the policy environment is transparent, stable and supportive of enterprise, the private sector will respond by mobilising capital and undertaking projects of global significance,” he said.

The President explained that the new plant will reduce clinker imports by more than 10 percent, helping retain hundreds of millions of cedis within the domestic economy.

“This means lower production costs, reduced import dependency and more value retained within the Ghanaian economy,” he added.

Sustainable Manufacturing and Climate Action

The new plant utilises limestone calcined clay cement technology, which significantly reduces carbon emissions compared to traditional cement production methods.

President Mahama emphasised the importance of adopting environmentally friendly industrial practices to support global climate goals.

“Traditional clay-based cement production accounts for about 8 percent of global carbon dioxide emissions. By introducing this technology, we are advancing both industrial growth and environmental responsibility,” he said.

He added that Ghana remains committed to balancing industrial development with climate action in line with international environmental agreements.

Part of Broader Industrialisation Agenda

President Mahama said the project forms part of government’s broader industrialisation and infrastructure development agenda under the Big Push programme, which is investing over GH¢60 billion in national development projects.

He expressed optimism that continued dialogue between government and industry stakeholders will help sustain price stability in the long term.

“Dialogue between government and industry remains essential for ensuring stability and sustainable growth in this all-important sector,” he said.

Economic Outlook

Analysts have welcomed the development, noting that stable construction material prices could support housing development, infrastructure expansion, and job creation across the country.