Ghana: Dangote sets retail price reduction deadline

Dangote Cement says it expects all retailers of its cement to reduce the price by GHS2.70 by Friday, 24 October following concerns that retailers have failed to cut prices after a reduction announced by the cement producer.

Dangote reduced its price on 9 October, the day after Diamond Cement and Ghacem cut their prices by GHS2 following the gradual appreciation of the credit agains the US dollar.

Speaking to Citi Business News, Dangote’s sales and marketing manager, Joeseph Kobina Abu, said: “So most of the stock you find in the market now were bought at the old price which was the high price relative to the low price…in this case I will not expect the reduction to happen in two days or three days but rather a week.”

Cement retailers have responded saying that any immediate reduction will lead to losses as they still old stock paid for before the reduction. Confirming the challenge to Citi Business News, Joeseph Kobina Abu stated that, “all the cement companies have reduced their prices, but you know, in the cement business, the customers are made to pay in advance before they are supplied.”