Ghana’s Economic Activity Delivers Mixed Results as Cement Sales Fall 10.3%

ACCRA, Ghana — October 14, 2026

Ghana’s economic activity recorded mixed results during the first seven months of 2026, with improvements in tax collections and vehicle registrations contrasting with weaker retail sales in July and a significant decline in cement sales, according to the Bank of Ghana’s September 2026 Monetary Policy Report.

The figures highlight differences in performance across key sectors, suggesting that gains in some areas of the economy have not translated into equally strong activity across the board.

Consumer Spending Shows Mixed Trends

Domestic Value Added Tax (VAT) collections rose by 11.5 per cent year-on-year to GH¢2.142 billion in July 2026, compared with GH¢1.922 billion in July 2025.

For the first seven months of the year, cumulative domestic VAT collections increased by 13.8 per cent to GH¢13.617 billion, up from GH¢11.965 billion over the corresponding period last year.

Retail sales, however, moved in the opposite direction in July. They fell by 1.5 per cent year-on-year to GH¢236.41 million, compared with GH¢239.89 million a year earlier.

Despite the July decline, cumulative retail sales for January to July rose by 2.2 per cent compared with the same period in 2025.

The figures suggest that consumer-related indicators remain uneven, with tax collections increasing even as retail sales weakened during the month under review.

Manufacturing Indicators Improve

Manufacturing-related indicators recorded growth during the period, supported by higher direct tax collections and increased pension contributions from private-sector workers.

Direct tax collections rose by 53.5 per cent year-on-year to GH¢8.085 billion in July 2026, compared with GH¢5.265 billion in July 2025.

Cumulatively, direct tax collections for the first seven months increased by 27.7 per cent to GH¢60.771 billion, from GH¢47.592 billion in the corresponding period of 2025.

Private-sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Tier-1 pension scheme also increased by 11.2 per cent in July to GH¢570.59 million, up from GH¢513.34 million a year earlier.

For January to July, contributions rose by 10.7 per cent to GH¢3.856 billion, compared with GH¢3.482 billion in the same period last year.

These indicators point to improvements in selected measures associated with formal-sector economic activity. However, they do not, on their own, establish the overall performance of manufacturing output.

Cement Sales Decline by 10.3%

The construction sector recorded one of the clearest signs of weakness, as cement sales fell substantially during the first seven months of 2026.

Cement sales declined by 4.9 per cent year-on-year in July to approximately 202,218 tonnes, down from 212,735 tonnes in July 2025.

Sales also slipped by 0.6 per cent compared with June 2026, when approximately 203,435 tonnes were recorded.

For the January-to-July period, total cement sales fell by 10.3 per cent to approximately 1.475 million tonnes, compared with 1.644 million tonnes in the same period of 2025.

The Bank of Ghana attributed the year-on-year decline to a moderation in construction activity during the review period.

The reduction is significant because cement sales provide an indication of activity in construction, a sector linked to housing, infrastructure development, building-material suppliers and employment.

However, the figures alone do not establish whether the decline resulted from reduced public infrastructure spending, weaker private property development, changes in inventories or other market conditions.

Vehicle Registrations Record Strong Growth

In contrast to the construction sector, vehicle registrations increased considerably.

New vehicle registrations recorded by the Driver and Vehicle Licensing Authority (DVLA) rose by 51.7 per cent year-on-year to 31,909 in July 2026, compared with 21,038 in July 2025.

Cumulatively, registrations during the first seven months increased by 52.7 per cent to 228,261, up from 149,440 in the corresponding period last year.

The increase points to stronger activity in vehicle registration, although registration figures alone do not necessarily reflect an equivalent rise in vehicle sales or overall transport-sector output.

What the Figures Mean for Ghana’s Economy

The latest indicators present a varied picture of Ghana’s economy. Higher tax collections, increased private-sector pension contributions and stronger vehicle registrations contrast with weaker retail sales in July and declining cement sales over the first seven months.

For businesses, the trends underline the importance of monitoring conditions across individual sectors rather than relying on a single indicator to assess economic performance.

Construction companies, building-material suppliers and property developers may need to pay close attention to demand conditions, while manufacturers and service providers will be watching whether improvements in selected indicators continue.

The overall picture is one of uneven performance. Whether the stronger indicators translate into broader and more sustained economic activity will depend on developments in the months ahead.

Source: Bank of Ghana.