Ghana faces currency depreciation and rising construction costs

Ghana is experiencing economic pressures characterized by currency depreciation and rising construction costs. The Ghanaian cedi has weakened by approximately 1.8% against the US dollar in less than two weeks, reaching a midpoint of roughly GH¢11.69. This decline is driven by high importer demand and reduced foreign-exchange inflows from the extractive sector, with Bank of Ghana auctions being oversubscribed by more than three times.

Simultaneously, the Ghana Statistical Service reported that building cost inflation rose to 4.6% in August 2026, up from 4.0% in July. While overall building inflation has moderated compared to the previous year, plant and machinery costs have emerged as a significant pressure point, with plant inflation reaching 17.9% year-on-year. This increase was largely driven by a 23.4% rise in small tools and a 10.7% rise in equipment costs.

In contrast, labor costs provided some relief to the construction sector, declining by 2.9% year-on-year. Other material costs showed mixed results; while plumbing and reinforcement saw sharp increases, steel and cement prices recorded declines.