News Guide Africa

Tag: Dr. Alhassan Iddrisu

  • Ghana’s building inflation holds steady at 2.2% …as BoG tightens real estate controls

    Ghana’s building inflation holds steady at 2.2% …as BoG tightens real estate controls

    By Adnan Adams Mohammed

    Developers and homebuilders across Ghana are experiencing a rare period of cost predictability as the country’s building materials inflation held completely steady at 2.2 percent for the month of April.

    The structural stability offers a massive breather to a sector historically plagued by volatile import costs and sharp pricing surges.

    However, as physical input costs stabilize, the regulatory landscape is shifting dramatically. The Bank of Ghana (BoG) has announced a major policy tightening cycle, rolling out rigorous, automated property and identity checks designed to permanently root out fraud, money laundering, and speculative distortions in the commercial real estate sector.

    Macro stability lowers financial risks for developers

    The latest data from the Ghana Statistical Service (GSS) indicates that the 2.2 percent baseline represents one of the most stable structural runs for the construction sector in recent memory. The stabilization is primarily driven by a steady domestic currency, which has kept the landing costs of imported finishing materials, electrical fixtures, and machinery tightly contained.

    Reviewing the data, a senior real estate analyst at a prominent Accra-based investment firm noted that cost predictability will allow developers to finally resume stalled residential projects without fear of sudden budget overruns.

    “A steady 2.2 percent building inflation rate is exactly the signal the market needs,” the analyst stated. “For years, contractors had to bake massive, arbitrary contingency premiums into their construction bids just to protect themselves against price spikes in cement, iron rods, and roofing sheets. With inflation flat-lining at this low baseline, developers can price their projects accurately, pass those savings on to buyers, and confidently break ground on new mid-market housing developments.”

    Government Statistician, Alhassan Iddrisu, speaking at the release of the latest Prime Building Cost Index (PBCI) report last week indicated that, the PBCI rose to 136.1 in April 2026 from 133.2 in April 2025. This means the average cost of building materials increased by 2.2 percent over the one-year period.

    On a month-on-month basis, prices of building inputs increased by 1.5 percent between March and April 2026.

    The report identified glazing, plumbing, roofing sheets and electrical works as the major drivers of inflation in the construction sector. Glazing recorded the highest year-on-year inflation of 16.2 percent, followed by plumbing at 14.5 percent and roofing sheets at 13 percent.

    Central bank takes aim at dirty money in real estate

    While physical construction conditions improve, the central bank is aggressively moving to sanitize the financial side of the property market. Addressing corporate leaders and compliance officers at an extractive and financial governance forum, a high-level representative from the Bank of Ghana revealed that the real estate sector has increasingly been flagged as a primary destination for illicit funds and fraudulent transactions.

    To counter this, the BoG is mandating deep integration between commercial banks, the Lands Commission, and state identity databases to automatically verify the origin of funds used in high-value property acquisitions.

    “The Bank of Ghana is pushing for significantly stronger property checks to reduce fraud and eliminate illicit financial flows in the real estate sector,” Deputy Head of the Collateral Registry Department, Mrs. Rosemary Akabutu, stated during a policy brief. “We can no longer tolerate an environment where individuals can move massive, unverified volumes of cash into luxury residential properties without clear audit trails. By enforcing rigorous, data-driven identity matching and source-of-wealth checks across all financial institutions, we are protecting genuine investors and stabilizing property valuations from artificial inflation.”

    The central bank emphasized that these automated checks will require banks to cross-reference every major property transaction against the national Ghana Card database and the Registrar General’s beneficial ownership profiles to expose individuals using complex corporate shells to conceal ownership.

    Contractors welcome cost stability but urge credit easing

    On the ground in industrial hubs like Tema and Kumasi, local contractors are praising the flat input costs but warning that high commercial lending rates still restrict broad-based sector growth. While materials are affordable, borrowing capital to buy them remains an expensive hurdle for indigenous firms.

    “We are incredibly relieved that the prices of core materials like cement and steel have held steady through April,” an executive member of the Association of Ghana Industries (AGI) Construction Sector remarks. “It means we can honor our existing contract delivery timelines without cutting corners. But to truly unlock the building industry, the central bank’s regulatory tightening must be balanced with measures that encourage commercial banks to lower construction credit rates. Stability in material prices is excellent, but we also need affordable financing to build at scale.”

    With building material inflation expected to maintain its stable path through the next quarter and the central bank’s anti-fraud frameworks slated for full operational enforcement by July, industry experts agree that Ghana’s building sector is entering a highly disciplined, institutional era defined by transparent capital and predictable costs.

     

     

     

     

     

     

     

     

     

  • Ghana to achieve single digit inflation by Q3 amidst threat from utilities price hike

    Adnan Adams Mohammed

    Ghana’s inflation has taken a sharp nosedive in the past two months, falling from 21.2 % in April to 13.7 % in June, after recording 18.4 % in May.

    Base on the recent development, analysts predict that inflation rate could return to single digit by September 2025 beating the government’s own target of mid-2026.

    The 13.7% June inflation is the lowest since December 2021 and also is nearing the end-year target of 11.9%.

    The Head of Finance at Merban Capital attributes the downward trend to a combination of factors, including sustained cedi stability, a tight monetary policy stance by the Bank of Ghana and falling yields on the Treasury bill market, which continue to absorb excess liquidity from the system.

    “All these three factors actually contributed towards the disinflationary pressure. And this can continue even into the third quarter, where we may end up hitting single digit inflation”, Nelson Cudjoe Kuagbedzi noted in a radio interview last week.

    “As I did indicate, 11.9% is the target for the year. But having achieved 13.7% as at second quarter, we may end up hitting single digit by September 2025. And this is good news for businesses, good news for individuals, and good news for the government. This inflation rate is going to provoke a lot of activity within the money market”, he added.

    However, the Ghana Statistical Service is concerned about price pressures from rent, electricity, refuse disposal, charcoal, and yam which remain the top five price pressure points driving inflation.

    Unexpectedly, refuse disposal, despite its small weight of just 0.5% in the inflation basket, saw a staggering year-on-year price surge of 130.9%, making it one of the biggest contributors to the overall rate.

    Meanwhile, Government Statistician Dr. Alhassan Iddrisu, has noted that sustained disinflation presents a crucial opportunity to shift from reactive price controls to more structural solutions.

    He is urging businesses to rethink their sourcing models, noting that: “With inflation on locally produced goods declining faster than imported ones, businesses can reduce exposure to global supply shocks by increasing local sourcing, especially for food, packaging, and logistics inputs.”

    “Businesses could practice strategic pricing, not sharp increases, given the disinflation and even month-on-month deflation as consumers are more price-sensitive.”

    In the face of rising food prices — with staples like yam still among the top inflation drivers — GSS also recommends changes in household purchasing behavior:

    “Households should lean into bulk purchases of staples, buy local produce where possible, and favor in-season vegetables, cereals, and proteins, which are experiencing sharper price drops.”

    As regional disparities in inflation persist, Dr. Iddrisu emphasized that economic policy must become more targeted:

    “Tailor social protection and economic policy by Region as blanket policies will not be effective given wide regional disparities in inflation.”

    The Government Statistician, while addressing a press conference, attributed the decline to what he described as a significant reduction in inflationary pressures that have weighed on the economy in recent months.

    “For the first time in a while, we are recording a month-on-month deflation of 1.2 percent between May and June, suggesting a real and sustained shift in price levels,” Dr. Iddrisu.

    Food inflation fell by 6.5 percentage points to 16.3 percent, down from 22.8 percent in May, while non-food inflation also eased to 11.4 percent from the previous 14.4 percent.

    However, regional disparities remain stark.

    The Upper West Region recorded the highest inflation rate at 32.3 percent, largely driven by rising food and utility costs. In contrast, the Bono Region posted the lowest at 8.4 percent.

    Dr. Iddrisu called for the use of more localized, granular data in policy planning to help address these regional imbalances and sustain the national disinflationary trend.

    The consistent decline over the past six months offers a hopeful sign for policymakers and businesses alike, especially as government targets single-digit inflation by early 2026

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Economists repose confidence in Ghana’s economy amid global trade tensions 

    Dr. Alhassan Iddrisu, Government Statistician in a pose with President John Dramani Mahama

     

     

     

    Adnan Adams Mohammed

     

    In spite of global trade tensions, some economists have reposed confidence in the country’s fragile economy, which has a history of vulnerability to external shocks.

     

    Among such is the Government Statistician, Dr. Alhassan Iddrisu, who has said despite external headwinds, including the ongoing global tariff war, Ghana’s economy continues to show signs of resilience.

     

    According to provisional data from the Ghana Statistical Service, the economy expanded by 5.3% in the first quarter of 2025, up from 4.9% recorded during the same period in 2024. At a press briefing the Government Statistician explained that the latest figures suggest that Ghana has, so far, managed to shield its economy from the adverse effects of global trade tensions.

     

    “We are all aware of what is happening. All other things being equal, one would have assumed that because of the trade war and trade tension, it should have a significant dampening effect on growth. What we are seeing is that the numbers we are seeing for the first quarter of 2025 in terms of growth don’t seem to suggest that the impact of the trade tensions is very significant on Ghana but this is early days yet. Data shows so far Ghana has been resilient and robust in terms of absorbing the shocks with regards to the trade tensions,” he said.

     

    Meanwhile, a Managing Partner at policy advisory firm Konfidants, Michael Kottoh, has indicated that, amid rising global trade tensions, Ghana has a unique opportunity to position itself as a strategic export hub, particularly within the African Continental Free Trade Area (AfCFTA).

     

    Speaking at the 2025 Citi Business Forum themed “The Global Tariffs Dispute: Navigating Ghana’s Recovery Strategy,” and held in Accra on Thursday June 12, he noted that while trade wars between major economies pose risks, they also open doors for smaller economies like Ghana to capitalise on emerging supply chain gaps.

     

    “In terms of opportunities, we could seize U.S. niche advantages while rivals pay higher tariffs,” he noted. “Lesotho has been crying a lot, South Africa is complaining a lot—we could potentially, using AfCFTA, attract some of that export.”

     

    A Pathway to Garment Sector Growth

     

    Kottoh emphasised the potential for Ghana to expand its garment and textile sector by absorbing production contracts that are under pressure in other African nations.

     

    Countries like Lesotho, which have been struggling with shifting global trade conditions, could see some of their export-oriented manufacturing relocate to Ghana, he suggested.

     

    “Lesotho could relocate some of those contracts to Ghana,” Kottoh explained. “So these are potential advantages—but we need to be strategic and understand which product lines, which value chains, which alliances and partnerships are required to take advantage of these.”

     

    Strategic Planning Is Key

     

    While the global tariff disputes have created disruptions in traditional trade routes, Kottoh cautioned that Ghana’s ability to benefit from these shifts will depend on clear strategy, sector-specific focus, and targeted partnerships across supply chains.

     

    “We need to be strategic and understand which product lines, which value chains, which alliances and partnerships are required to take advantage of these.”

     

    Disjointed Africa’s trade policy response

     

    Consequently, the Chief Executive Officer of the African Centre for Economic Transformation (ACET), Mavis Owusu Gyamfi, is worried over Africa’s lack of a coordinated response to global economic disruptions, particularly in the wake of tariff hikes initiated by the United States.

     

    Also, speaking at the 2025 Citi Business Forum under the theme “The Global Tariffs Dispute: Navigating Ghana’s Recovery Strategy,” she highlighted that other regions, notably Asia, responded swiftly and strategically to the recent tariff increases announced by U.S. President Donald Trump.

     

    She questioned Africa’s lack of a unified and proactive stance in contrast to the Asian response, noting that despite not having a formal bloc like the African Union or a framework like the African Continental Free Trade Area (AfCFTA), Asia was able to organise an effective strategy.

     

    She expressed disappointment in Africa’s silence and lack of coordination in the face of rising global economic tensions. She urged the African continent to approach global economic shocks with a collective strategy rather than panicking.

     

    “Where is our common voice? Remember, Asia is not a bloc. It doesn’t tout to be AU or AfCFTA or any of the things we are so proud about. It doesn’t do it. It doesn’t have a theoretical framework that it is proud of, but it had a structure for implementation in a crisis.

     

    “The thing that disappointed me the most in all of this was that Africa forgot why we set up the AfCFTA in the first place. Africa forgot the processes we have in place for the African Union. In fact, Africa forgot we had the AFDB because it wasn’t until a week ago that I heard an AFDB statement on the tariffs,” she stated.