Ghana Cement Industry – Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on Ghana Cement Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to Ghana Cement Industry

In recent years, Ghana has become an important market for cement in Africa because of construction activities. Local manufacturers in Ghana have an installed cement production capacity of 7.4 million tons. However, the annual demand for cement is only 5 million tons. According to UN Comtrade statistics for 2017 import of cement in the country stood at 4.55 million metric tons. Ghana imports cement mainly from China and it may cost Ghana cement industry more than 13 million US$.  As per international Cement review, Ghana currently has 8 operational cement manufacturing plants. Out of these 8 plants 7 are located along the coast. As per World Bank Report, the capacity utilisation for cement in Ghana is around 46%. Cement industry contributes very little to Ghana’s GDP.

Market Dynamics

Concerns for the cement industry in Ghana

Although Ghana has surplus production of cement the country imports cement from other countries especially China. This has a negative impact on the domestic manufacturers as prices for cement decline because of import. According to Ghana Trade Statistics, the cost and freight for cement in China is as low as 25$ per ton.

Another challenge for the local cement industry is the limited supply of limestone, which is an important raw material for the production of cement.

The third concern for Ghana cement industry is the constant fluctuations in the valuation of Cedi (Ghana currency) against US Dollar. It makes the valuation of the international market for cement very unpredictable.

As Ghana is located in Africa, the temperature is high here. However, most standards for cement were developed in countries with moderate climates. This creates quality related issues.

Cement manufacturers in Ghana are facing difficulties in expanding in other parts of Africa mainly because of the deteriorating economic situation in Ghana.

Future opportunities and trends

The government of Ghana has introduced the country’s first building code in October 2018. This will help to remove irregularities in the construction and building sector.

Domestic sales volumes are expected to grow in the future and the demand for cement from Tanzania and Ethiopia is expected to grow because of the installation of new gas turbines.

Major trade partners

  • Countries, which export cement to Ghana (2016), are
  • China- Imports worth 66.1 million US$ (23%)
  • South Korea- Imports worth 32.1 million US$ (11%)
  • UAE- Imports worth 26.1 million US$ (9%)
  • Turkey- Imports worth 23 million US$ (7.9%)
  • United Kingdom- Imports worth 29.6 million US$ (10%)
  • Sweden- Imports worth 22.5 million US$ (7.8%)
  • Spain- Imports worth 18.1 million US$ (6.2%)
  • Greece- Imports worth 11.4 million US$ (3.9%)

Countries importing cement from Ghana

  • Burkina Faso- Exports worth 4.68 million US$ (75%)
  • Togo- Exports worth 1.49 million US$ (24%)

Key Players

GHACEM- Ghacem is the largest cement manufacturer of cement in Ghana. It was established in the year 1967. It is a joint venture between the Ghanaian government and Norway’s Norcem AS. Ghacem controls 54% share of the cement market in Ghana. Ghacem is the leading cement producer company in Ghana. Ghacem has 2 cement grinding plants.

Diamond- Diamond is the biggest competitor of Ghacem. It controls 33% of Ghana’s cement industry. The company was established in the year 2002. The company does eco-friendly operations. It is an Indian owned Portland cement company.

Dangote cement- Dangote cement has been operating in Ghana since 2011. It imports and bags cement at its terminal in Tema and sells it in the domestic market.  Dangote Cement is a leading cement manufacturer in Africa and operates in 10 African countries. It is the largest company on the Nigerian stock exchange. Cement from Dangote brand is sold in 50 kg bags.

Savannah Diamond Cement- Savannah Diamond cement started production of cement in the year 2015. It controls 13% of the market share. The company is working on developing a Clinker facility to ensure smooth supply of Limestone.

The report contains a comprehensive analysis on:

  • Ghana Rubber Industry Segments
  • Ghana Rubber Industry Drivers, Restraints and Opportunities
  • Ghana Rubber Industry Size & Forecast 2016 to 2023
  • Supply & Demand Value Chain
  • Ghana Rubber Industry Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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