Despite a stronger Ghanaian cedi, the Association of Ghana Industries (AGI) says entrenched cost pressures are preventing businesses from lowering prices, warning that without structural reforms to reduce the cost of production, any currency-driven gains may prove short-lived.
“The appreciation of the cedi has not translated into price relief because the cost of raw materials remains high,” AGI National Treasurer Raphael Ayitey told the Parliamentary Select Committee on Trade, Industry, and Tourism. “Unless we can lower the cost of production, it will be impossible to sustain the gains made with the currency’s recent appreciation.”
The cedi has strengthened in recent weeks, offering a brief reprieve to an economy grappling with inflation and supply-chain disruptions. But Ayitey cautioned that the underlying factors that drove currency depreciation, such as external dependency and domestic supply constraints, remain unresolved.
“This is a critical moment, and we must not lose the opportunity. The factors that previously weakened the cedi may simply be dormant and could resurface at any time,” he said.
Using the hospitality sector as an example, Ayitey noted that roughly 75% of industry inputs are imported, leaving businesses exposed to global price volatility and forex risks. “For example, consider basic items like towels and linens. Where is Japan Textiles? I know the Minister is working hard on this, but we need to accelerate efforts to revive existing local industries and support potential new entrants. Speed is of the essence.”
The AGI’s remarks underscore a broader concern to strengthen Ghanaian manufacturers. While the central bank’s recent policy tightening has helped stabilize the cedi, industry players argue that high input costs, import dependence, and weak industrial output continue to erode the country’s economic resilience.
Relatively, in May of this year, Finance Minister Dr. Ato Forson vowed to ban imports of locally producible goods, protect Ghanaian industries, and create jobs, with expectations of revitalizing the manufacturing and industrial sectors of the economy.
Ayitey said that for Ghanaians to see real price relief, policy must shift toward reducing structural barriers to production, or else the benefits of a stronger cedi will be limited and temporary.
