The cement industry in Ghana runs on a supply chain that is deeply tied to the US dollar. From purchasing clinker to paying for shipping and other import-related expenses, most of the key transactions are done in foreign currency. This means that when dollars are hard to come by, the impact is felt quickly and sharply.
Even though the cedi has shown some strength against the dollar in recent months, the real challenge has been availability. Importers still face delays in accessing enough forex to pay suppliers, and when they do get it, it often comes at a higher cost in cedi terms. In some cases, companies have had to turn to the open market to meet urgent payment deadlines, paying above official rates just to keep shipments moving. The Bank of Ghana, under recommendations of the IMF, has also reduced their fiscal interventions in the market, hence, reducing the quantity of dollars currently available in the market.
For clinker, the main raw material in cement production, this shortage is more than an inconvenience. Without timely access to dollars, import orders can be delayed, risking production schedules and creating gaps in supply. To avoid running out, companies sometimes pay whatever rate they must to secure the currency, which pushes up their overall cost per tonne of clinker.
Building contractors also lament the shortage of dollars readily available as banks sell their dollars at a higher price point, different from the interbank rates posted by the Bank of Ghana. And this affects the construction industry, as higher building material costs means that the contractors need to charge higher prices for projects and building owners too end up charging high for rent.
While current cement prices in Ghana appear stable, with some brands even reducing their prices, these hidden currency costs are building in the background. The longer the dollar shortage persists, the more pressure there will be on producers to recover those extra expenses. And in an industry where margins are already squeezed by rising global clinker prices, port delays, and higher energy costs, there is limited room to absorb yet another burden.
For contractors, builders, and anyone preparing for a project, this is a factor worth watching closely. Exchange rate challenges often lead to price changes, but the shift isn’t always immediate. By the time it reaches the market, the adjustment can be sudden and significant, leaving those who waited to buy facing a higher bill than expected.
