Ghacem

Ghana’s real estate industry has been showing
lots of promise over the past decade. During
that period, the number of real estate agents
and developers have grown immensely, which
has culminated in the significant increase in
the number of properties in the country.
However, the long standing dilemma ensues.
With a heavy reliance on electricity and
cement, Ghana’s real estate’s backbone has
been systematically susceptible to price
fluctuations. This is because of the growing
demand for electricity and cement by private
and commercial consumers. Cement is a
crucial component in the real estate industry,
with 77% and 57% accounting for floor
materials and outer walls of buildings in Ghana
respectively. This high dependency means the
fluctuating price of cement is bound to affect
the price of properties concurrently.
In the December 15, 2014 issue of the
Business and Financial Times (B&FT), it was
reported that Ghana Cement Ltd (Ghacem) was
due to see a shortfall in its production output.
According to the report, the move by
Electricity Company of Ghana (ECG) to ration
power to industrial companies was set to
affect its ability to produce 58,000 bags of
cement.
To be fair to ECG, it is not entirely their fault,
since the challenge posed at Akosombo, with
only five out of six turbines working, has
necessitated the need to ration power
nationwide. With such a move coming into
force, it would mean industrial companies will
have power cuts for 48 hours while enjoying
six days uninterrupted power supply. Unlike
the domestic sector which would have
embraced this better than their status quo, the
industrial sector cannot afford to have such an
experience.
With an annual growth rate of 10 – 15%, the
energy sector needs much investment to curb
Ghana’s perennial energy crises. It is therefore
laudable that government has pledged to
ensure that Ghana produces 5000 MW of
electricity by 2016. That would be a remarkable
achievement considering the current amount
of an estimated 2800MW. It would however
have to take an all-hands-on-deck approach,
led primarily by government and supported by
the private sector to realize this goal.
Local matertials to the rescue
With the seemingly production cut by Ghacem
however, the real estate sector is likely to be
affected. All is not lost however as for every
problem, there is a solution. Lamudi Ghana has
set its sights on improving the property market
and late this year, the property expert
organized a roundtable discussion concerning
sustainable real estate.
The discussion made startling revelations. Of
the most important was the need for Ghana to
adopt local building materials. The nation is
blessed with natural materials such as clay,
pozzolana, timber and building lime, yet an
estimated 70% of building materials are
imported annually.
Earth bag being used in the construction of a
house
It is striking to note that the use of local
materials is rather a cheaper option than
sandcrete. For every square meter, clay bricks
would cost around $300 while sandcrete
(cement blocks) would cost $500. This was
according to Orthner and Orthner architect,
Akosua Obeng.
This is not to say sandcrete should be entirely
replaced. The nation still will have to depend
on this building material for surfaces such as
foundations, bridges and roads. Cement would
also be needed for high rise buildings and
other luxurious ones. For affordable housing
however, it is high time that Ghana make a
more concerted effort at pushing the drive
towards the adoption of local building
materials.