Prices of key food staples in Ghana are beginning to decline as macroeconomic stability gains traction, with the Food and Beverage Association of Ghana (FABAG) reporting early reductions and urging a coordinated national response to bring down consumer costs across sectors. The development comes after high-level discussions between FABAG executives and the Minister for Finance, Dr. Cassiel Ato Forson, aimed at translating fiscal progress into tangible household relief.
FABAG Executive Secretary John Awuni confirmed that prices of sugar and rice have fallen by 7% and 10%, respectively, in recent weeks, an encouraging sign in a market long burdened by inflationary pressures. The association has called for a nationwide campaign to reduce prices, appealing to industry peers to join efforts to deliver real relief to consumers.
Praising FABAG’s initiative, Finance Minister Forson emphasized the importance of aligning private sector actions with the government’s stabilization agenda. “The recent appreciation of the cedi and the stability being witnessed is not a temporary or knee-jerk reaction. It is the result of deliberate, well-thought-out planning and prudent economic management,” he said.
Forson urged other trade groups, including the Ghana Union of Traders’ Associations (GUTA), to reflect the stronger cedi and easing inflation in their pricing. “This stability is here to stay. Our focus at the Ministry of Finance is clear: we are moving beyond just achieving strong macro-economic indicators. It is now time for these gains to translate into real, tangible relief for our people, especially at the micro level,” he added.
The Minister also underscored the need for rapid price corrections in the food sector, which he described as having been “unreasonably high.” To reinforce the effort, the Ministry is addressing long-standing structural inefficiencies such as high port charges, excessive levies, and widespread smuggling, factors that have distorted domestic price mechanisms.
In a policy move aimed at sustaining affordability, Forson also revealed that the Ministry will rationalize the Value Added Tax (VAT) regime in the upcoming November budget. The rationalization is expected to streamline tax application across the value chain, ease cost burdens for businesses, and ultimately contribute to lower retail prices.
