Ghanaian cement manufacturers have introduced a uniform GH¢12 surcharge on each bag of cement. This decision has prompted a strong warning from CUTS International, a public policy think tank, which views the move as potential cartel conduct.
The Chamber of Cement Manufacturers, Ghana (COCMAG), implemented the surcharge to offset substantial demurrage costs. These costs arose from severe congestion at Tema Port, which saw vessel waiting times increase from seven days in January to over 40 days by August 2026. The industry faced estimated demurrage costs between US$45 million and US$50 million in the first eight months of the year.
This development fits into Ghana's broader economic narrative of supply chain vulnerabilities and inflationary pressures. Port inefficiencies directly impact import-dependent industries, pushing up operational costs that often transfer to consumers. Such collective pricing actions could further strain household budgets and construction project costs across the nation.
Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International, stated, “When competitors agree on an element of price rather than determine it independently, such conduct bears the classic hallmarks of cartel behaviour.” He emphasized that while manufacturers can recover legitimate costs, agreeing on a common surcharge among competitors raises serious red flags.
The immediate implication is a potential increase in cement prices for consumers and the construction sector. Regulators and competition authorities will likely scrutinize this collective pricing decision. The situation also highlights the urgent need for government and the Ghana Ports and Harbours Authority (GPHA) to address port congestion, which remains a critical bottleneck for many industries.
CUTS International acknowledged the legitimate cost pressures faced by cement producers. However, the think tank stressed that the method of cost recovery must adhere to competition principles. The GH¢12 surcharge, comprising GH¢10 before tax and GH¢2 in taxes and levies, was reportedly agreed upon at an emergency meeting on August 28, 2026. It is set to remain until December 31, subject to monthly monitoring and a review in January 2027.
The think tank argued that calling the amount a “demurrage surcharge” does not remove the competition concern. A surcharge directly impacts the final price consumers pay. Agreements between competing firms on prices or components of prices are considered among the most serious violations of competition law globally. This is because such agreements stifle healthy market competition.
CUTS highlighted that different cement manufacturers operate with varying shipping contracts, clinker volumes, and operational efficiencies. These differences mean their actual demurrage costs per bag would not be identical. Therefore, there is no economic justification for every manufacturer to incur the exact same additional cost of GH¢12 per bag. One manufacturer might need GH¢12, another GH¢8, while a more efficient one might absorb costs to gain market share. This independent decision-making is the essence of competition.
To illustrate, CUTS cited the airline industry, where fuel is a major cost. When fuel prices rise, airlines independently apply fuel surcharges. For example, on the Accra-Kumasi route, Africa World Airlines applied a GH¢220 fuel surcharge, while Passion Air applied GH¢75 on September 15, 2026. This difference reflects their unique operational structures and commercial strategies. A common industry problem does not necessitate a common industry price.
CUTS recognized COCMAG’s role in advocating for its members on issues like port congestion. However, it warned that trade associations must maintain a clear boundary between legitimate advocacy and coordinating commercial decisions. Discussing or agreeing on prices or surcharges among competitors crosses this boundary and risks anti-competitive behavior. The think tank urged COCMAG to clarify if the GH¢12 surcharge is a collective decision or merely a recommendation, and if members are free to set their own charges.
The absence of a comprehensive domestic competition law in Ghana makes this situation even more concerning. CUTS International reiterated its call for the urgent passage of Ghana’s Competition and Fair-Trade Practices legislation. This law would provide the necessary framework to address such anti-competitive practices and protect consumers. Resolving port issues must not come at the expense of fair competition in the market.