Ghana: cement companies cut prices to win market share

Improving economic conditions and Dangote’s aggressive pricing policies have been blamed for what looks to be a developing price war among Ghanaian cement companies, Ghanaweb reports.

Following Dangote Cement’s decision to reduce its price by GHS1.00/bag (US$0.25) in September, Ghacem and others have followed suit, driving down prices throughout the country.

The Ghanaian market is dominated by Ghacem, Dangote and WACEM/Diamond, although GhanaWeb’s investigations found that cement imported from China also had a foothold in some areas.

The market in Accra is dominated by Ghacem and Diamond, with dealers reporting that Dangote cement was in low demand and was sent to markets outside the city where it “enjoyed good sales”. Prices for Ghacem were quoted as GHS30/bag, while Diamond was GHS29/bag.

In northern Ghana around Tamale, GhanaWeb found that Diamond cement held the lion’s share of the market, helped by a price of about GHS30/bag, lower than its two main competitors in the region.

A similar situation prevails in Western Ghana, where Diamond’s prices are even lower – at around GHS28/bag – giving the firm the edge over its competitors, whose prices are GHS2 higher.

On the border with Togo, in Ho, Dangote and Diamond both held their prices below GHS29/bag, around GHS1 lower than Ghacem. In Bolgatanga near the northern border with Burkina Faso, Diamond cement was marginally cheaper (GHS32/bag) than Ghacem or Chinese brand Super Rapid.