Ghanaian cement manufacturers have introduced a uniform GHS 12 per bag surcharge on cement, prompting strong competition concerns from CUTS International. This collective decision by the Chamber of Cement Manufacturers, Ghana (COCMAG) could signal cartel-like behavior. The surcharge aims to offset significant cost pressures from port congestion, but its uniform application across competing firms raises red flags for market fairness.
The GHS 12 surcharge is designed to recover rising demurrage costs at Tema Port. Vessel waiting times at the port increased dramatically, from an average of seven days in January to between 30 and 40 days by August 2026. This congestion led to estimated demurrage costs of US$45 million to US$50 million for the industry in the first eight months of the year. CUTS International argues that while manufacturers can recover legitimate costs, agreeing collectively on a common surcharge is problematic.
This development fits into Ghana's broader economic narrative of infrastructure challenges and market regulation. Persistent port congestion at Tema Port has been a recurring issue, impacting various sectors dependent on imports. The uniform surcharge could exacerbate inflation in the construction sector, a critical component of Ghana's economic growth. Such collective pricing actions can undermine the competitive environment that regulators strive to maintain.
Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International, highlighted the core issue. He stated, “Cement manufacturers have every right to recover legitimate demurrage costs. What raises a red flag is when firms that are supposed to compete meet and collectively determine a common surcharge to be paid by consumers.” This statement underscores the distinction between cost recovery and coordinated pricing strategies.
The implications for Ghana's economy are significant. Cement is a fundamental input for housing, commercial buildings, and public infrastructure projects. A uniform price increase, even disguised as a surcharge, will directly translate into higher construction costs. This could affect project budgets, increase rents, and reduce housing affordability for Ghanaian citizens. Policymakers and market regulators will closely monitor this situation for its impact on inflation and market competition.
CUTS International noted that the GHS 12 surcharge includes GHS 10 before tax and GHS 2 in taxes and levies. The decision was reportedly made at an emergency meeting on August 28, 2026. It is expected to remain in place until December 31, subject to monthly monitoring and a review in January 2027. This timeline suggests a sustained impact on cement prices over several months.
The think tank emphasized that describing the measure as a “demurrage surcharge” does not change its economic effect. From a consumer's perspective, it is part of the final price paid for cement. Coordination on this component effectively means coordination on price. Cement manufacturers often have different cost structures due to varying shipping contracts, clinker volumes, and operational efficiencies. Therefore, a uniform response is not necessarily economically justified.
CUTS provided an analogy with airline fuel surcharges to illustrate this point. For the Accra-Kumasi route, Africa World Airlines applied a GHS 220 fuel surcharge, while PassionAir applied GHS 75. This difference reflects distinct operating costs and commercial strategies, even when facing the same external cost pressure. A common industry problem does not automatically require a common industry price, according to CUTS.
Trade associations like COCMAG play a legitimate role in engaging government and institutions on shared operational problems. However, CUTS warned that they risk crossing competition-law boundaries when members discuss or agree on prices or other commercially sensitive matters. Such decisions should be made independently by individual firms to ensure fair market practices.
The organization has asked COCMAG to clarify if the GHS 12 surcharge is a binding collective decision, a recommendation, or merely a reference point. They also questioned whether individual manufacturers remain free to charge different amounts. CUTS further cautioned against using the monthly monitoring and January review process for exchanging sensitive commercial information, such as future prices or production volumes. This situation highlights the delicate balance between industry collaboration and maintaining a competitive market.