In 2023, Ghana’s construction sector faced significant challenges, with a contraction of 2.8% in real terms, following a 4% decline in the previous year. This downturn was largely driven by escalating construction material costs, particularly cement.
Cement prices have seen fluctuations in recent periods, adding to the strain on the sector. As of April 2025, retail prices for a 50kg bag of cement range between GH₵89 and GH₵98, with some brands even priced higher, reaching up to GH₵115 per bag. These price variations are largely influenced by the depreciation of the Ghanaian cedi, which increases the cost of imported raw materials. Despite these setbacks, the long-term outlook for the sector remains positive.
A pivotal factor in this context is Ghana’s heavy reliance on imported clinker, a critical component in cement production. In 2023, the country was the second-largest importer of cement clinker globally, spending an astounding $282 million. This dynamic has compounded the pressure on both construction firms and consumers, hindering growth and accessibility to affordable housing.
There have been regulatory measures by the government to control cement prices. Despite these regulatory measures, the continued reliance on imported clinker remains a key challenge.
The Economic Strain of Clinker Imports
Ghana’s cement industry, which has been integral to the country’s rapid urbanization and infrastructure development, has long been reliant on foreign clinker imports. In 2023, the major suppliers of clinker to Ghana included Egypt, Saudi Arabia, the United Arab Emirates, Algeria, and a host of other nations.
With $282 million spent on clinker imports, Ghana’s cement sector faces an economic burden, one that is only compounded by the volatility of international markets and geopolitical instability.
The heavy importation of clinker creates a substantial trade deficit, with Ghana exporting just $5.22 million worth of clinker in the same year, primarily to regional neighbors like Burkina Faso. This stark imbalance highlights Ghana’s reliance on external suppliers and underscores the vulnerability of its cement industry. The imported clinker costs not only strain the country’s foreign reserves but also expose the local cement sector to the uncertainties of global supply chains.
As Ghana continues to push for infrastructure expansion, particularly in urban housing and industrial projects, the country faces an urgent need to reduce its import dependency. This is where LC3 technology seems to offer a transformative solution.
LC3 Technology: A Game-Changer for Ghana
LC3, or Limestone Calcined Clay Cement, is an innovative cement alternative that significantly reduces the reliance on clinker by substituting it with locally sourced materials. The key components of LC3 include calcined clay, limestone, and a small amount of gypsum, making it an ideal choice for Ghana, which is rich in both limestone and kaolinite-rich clay.
Unlike traditional Ordinary Portland Cement (OPC), which is heavily dependent on clinker, LC3, according to research, uses about 50% clinker, with calcined clay contributing around 30% and limestone making up 15%.
This reduction in clinker use brings multiple benefits. First, it lowers production costs by utilizing materials that are abundantly available within Ghana, rather than relying on expensive imports. Second, the production of LC3 requires less energy compared to OPC, which is notoriously energy-intensive.
The environmental benefits are also significant, with research indicating up to 40% lower CO2 emissions associated with LC3 production. For Ghana, a country striving to meet global climate goals, LC3 represents a sustainable alternative that supports both local industries and international environmental commitments.
Addressing Environmental and Economic Challenges
The environmental impact of traditional clinker-based cement production has been a growing concern worldwide, with the cement industry accounting for around 8% of global CO2 emissions. Findings show that for Ghana, adopting LC3 technology offers a crucial opportunity to reduce these emissions. By cutting clinker content and using local raw materials, LC3 not only mitigates the environmental damage but also positions Ghana as a leader in sustainable construction practices within the region.
From an economic standpoint, the shift to LC3 is a strategic move that aligns with Ghana’s need to lower its foreign exchange outflows and create a more resilient and self-sufficient cement industry. By decreasing reliance on imports, Ghana can reduce its trade deficit, creating a more balanced economy and sparking growth in local industries such as mining, materials processing, and construction. Furthermore, the cost savings derived from the use of local materials could lead to lower cement prices, making housing and infrastructure projects more affordable, especially in the growing urban areas.
Supacem’s Investment in LC3 Technology
A significant milestone in this transformation came with the announcement of CBI Ghana Ltd., producers of Supacem Cement, investing a substantial $100 million into the world’s largest LC3 production facility, located in Tema. The company says this new facility is a game-changer, as it taps into Ghana’s rich natural resources to create a sustainable, locally sourced cement solution.
Kobby Adams, the Commercial Director of Supacem, emphasized that this innovation was made possible by the collaboration between local institutions like the Kwame Nkrumah University of Science and Technology (KNUST), the University of Ghana, the BRRI (Building and Road Research Institute), and international universities and laboratories.
In his statement, Adams highlighted that the Ghana Standards Authority’s adoption of the LC3 standard (GS PAS 5:2024) in 2024 paved the way for the widespread use of this more sustainable cement.
“This landmark achievement follows two years of collaboration between Ghanaian institutions and international universities, setting the foundation for a more sustainable and locally sourced cement production process,” Adams noted.
This investment by Supacem not only represents a significant step towards self-sufficiency in the cement industry but also has profound implications for the local economy. The Tema LC3 facility is expected to provide jobs, particularly for women, through skill development programs tied to the plant’s operations.
Additionally, the local sourcing of materials for cement production will stimulate the economy by creating opportunities for small and medium-sized enterprises (SMEs) involved in mining, clay processing, and logistics.
Building a Resilient and Sustainable Cement Industry
The move towards LC3 technology represents more than just an economic opportunity, it is a strategic necessity for Ghana. By reducing its dependence on imported clinker, Ghana can better withstand global market fluctuations and ensure a steady, affordable supply of cement for its construction sector.
The investments in LC3 plants, like Supacem’s $100 million facility, also provide a tangible pathway to reducing the country’s reliance on imported clinker while simultaneously addressing environmental concerns. With its potential to lower production costs, reduce emissions, and stimulate local industries, LC3 offers an exciting opportunity for Ghana to redefine its cement sector, paving the way for a more sustainable and prosperous future.
