Bank of Ghana reports 10.3% decline in cement sales as costs rise

Ghana’s construction and retail sectors are experiencing a significant slowdown as the rising costs of building materials dampen demand across the country. Data from the Bank of Ghana indicates that cement sales fell by 10.3% during the first seven months of 2026, with July alone recording a 4.9% year-on-year decrease. This decline highlights a loss of momentum across the construction value chain, affecting both large-scale developers and individual households planning new projects.

In addition to the slump in construction materials, broader retail activity has weakened. Retail sales dipped by 1.5% in July 2026, reflecting a general moderation in consumer demand. While VAT collections saw an 11.5% increase during the same period, economic analysts suggest this rise is likely driven by inflationary pressures rather than an actual increase in the volume of goods sold. Building cost inflation specifically rose to 4.6% in August, heavily impacted by the surging prices of iron rods and cement.

The persistent price hikes have forced many project owners to revise their budgets or put construction on hold. Recent market data shows that the high cost of essential materials has become a major hurdle, creating a challenging environment for suppliers who are witnessing a reduction in orders. This trend suggests that without a stabilization in material costs, the construction sector—a traditional engine of economic growth—may continue to face headwinds in the coming months.