Executive Secretary of the Ghana Real Estate Developers Association (GREDA) has hinted of possible reasons for the recent increase in the cost of building materials.

Particularly, the cost of iron rods and cement are reported to have increased in a space of three months, a disturbing situating for building contractors.

Speaking in an interview with Joy Business’ Mildred Dodoo, Samuel Amegayibor agreed the development is unfortunate but provided some reasons for the increment.

“The prices have gone up from the international market. Because of Covid most of the production had either folded up or they are on break so it looks like just few companies can supply.”

According to him, the cost of freight is also a contributing factor.

“The shipping line are charging more than they were charging, saying, it is because of increase in crude oil prices which is affecting their operation cost.”

The reason for the increment in the cost of iron rods is also not different from that of cement.

“I checked with the cement manufacturers and they are also telling me the major material for cement is klinka and that is also imported. Then there is the issue of inflation and exchange rate affecting it a bit.”

He, however, recommended that the government makes some adjustment due to these international factors.

“If there is anything to be done about prices, then it’s with those taxes and levies that are slapped on those products, that is where government can make some adjustment.”

Should the government fail to intervene, there is very little GREDA can do to change the set down regulations for prices in the industry.

“If the government doesn’t do anything and want to keep it as it is, then eventually everything goes up.”