Ghana’s construction and retail sectors are experiencing a slowdown in market activity, even as prices of selected building materials continue to rise, putting additional pressure on developers, contractors and households.
Data from the Bank of Ghana’s September 2026 Monetary Policy Report indicate that cement sales declined significantly during the first seven months of 2026, reflecting weaker demand across parts of the construction industry.
Cement Sales in Ghana Drop by 10.3%
Cumulative cement sales fell by 10.3% between January and July 2026, dropping to 1.48 million tonnes from 1.64 million tonnes recorded during the same period in 2025.
The decline has been attributed to a moderation in construction activity, raising concerns about demand for building materials and the performance of cement manufacturers and distributors.
In July 2026, cement sales declined by 4.9% year-on-year to 202,218 tonnes, compared with 212,735 tonnes in July 2025.
Sales also decreased by 0.6% from the 203,435 tonnes recorded in June 2026, highlighting the impact of softer demand across the construction value chain.
If the trend continues, cement producers, building material suppliers and distributors could experience further pressure on sales volumes, particularly as lower demand has not resulted in widespread price reductions.
Retail Sales Decline in July 2026
Ghana’s retail sector also recorded a decline in sales during July, although cumulative retail activity remained higher than the previous year.
According to the Bank of Ghana, retail sales dropped by 1.5% year-on-year to GH¢236.41 million in July 2026, compared with GH¢239.89 million in July 2025.
On a month-on-month basis, retail sales declined by 0.8% from GH¢238.25 million in June.
Despite these setbacks, cumulative retail sales increased by 2.2% between January and July 2026. The figures suggest that retail activity lost some momentum in July rather than experiencing a prolonged contraction throughout the seven-month period.
Domestic VAT Revenue Rises Despite Weaker Sales
Domestic Value Added Tax (VAT) collections recorded stronger growth, offering a contrasting picture of Ghana’s economic activity.
VAT revenue increased by 11.5% year-on-year to GH¢2.14 billion in July 2026. Cumulative collections also rose by 13.8% to GH¢13.62 billion.
However, the increase in VAT revenue does not necessarily indicate higher sales volumes. Rising prices, changes in transaction values, improved tax compliance and shifts in taxable spending could also have contributed to the growth.
Cement Prices Increase as Construction Costs Rise
While cement sales continue to decline, selected building material prices increased in September 2026, according to the Channel One Market Price Barometer.
The price of a bag of 32.5R cement rose from GH¢98 to GH¢100, while 42.5R cement increased from GH¢109 to GH¢117.
The price adjustments came after cement manufacturers introduced a temporary clinker demurrage surcharge amid congestion at Tema Port.
Extended vessel waiting times reportedly increased demurrage charges and operating expenses, adding to the cost pressures facing cement producers and the wider construction industry.
These developments highlight the challenges facing Ghana’s building and construction sector, where moderating demand is occurring alongside persistent increases in selected input costs.
Iron Rod and Sand Prices Also Rise
Other essential building materials also recorded price increases during September, further affecting construction budgets across Ghana.
Iron rods increased from GH¢7,300 to GH¢7,500 per tonne, extending the upward price movement recorded in August, when prices rose from GH¢7,200 to GH¢7,300 per tonne.
Rough sand prices also increased from GH¢2,700 to GH¢2,800 per double-axle load.
The rising cost of cement, iron rods and sand could make building projects more expensive for property developers, construction companies and individuals planning to build homes.
What Rising Building Material Prices Mean for Ghana’s Housing Market
The combination of falling cement sales and rising building material prices presents a difficult situation for Ghana’s construction industry.
Developers and contractors may face tighter profit margins as demand moderates while the cost of essential construction inputs remains elevated. Households building with limited budgets may also experience delays or higher financing requirements as project costs increase.
For Ghana’s housing market, sustained increases in construction costs could affect the affordability of residential properties and put additional pressure on individuals seeking to complete ongoing building projects.
The latest figures highlight the importance of monitoring cement prices, iron rod prices, sand costs and broader economic indicators to understand the direction of Ghana’s construction and retail sectors.
Source: newsthemegh.com