The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has downplayed the recent decline in inflation, arguing that while the drop to 13.7% is commendable, it is insufficient to transform Ghana’s economic fundamentals.
“It is a good start, but it’s not enough. Reducing inflation to 13.7% is a necessary condition, but not sufficient to restructure the economy,” Badu-Aboagye said on Joy News’ PM Express.
His comments come as policymakers tout the inflation decline alongside the launch of the 24-Hour Economy policy as key indicators of macroeconomic turnaround. However, the GNCCI boss believes real change requires cost reductions for businesses.
“Launching a 24-hour economy will not change the harsh business environment we are currently facing,” he cautioned.
He noted that for the private sector to feel the benefits of lower inflation, it must translate into cheaper credit and reduced utility costs, which remain among the highest in Africa.
“We want to see how the lower inflation will reduce the cost of credit. We want to see how it will reduce the cost of utilities, electricity and water. These are critical components in manufacturing,” he explained.
Badu-Aboagye highlighted that Ghanaian manufacturers pay 12 to 15 cents per kilowatt hour for electricity, compared to less than five cents in other competitive markets.
“If we truly want to scale up manufacturing, we need to reduce the cost of utilities and the cost of credit. No company can manufacture, export, and remain competitive under the current conditions,” he emphasised.
Aligning with President Mahama’s vision, he underscored that the 24-hour economy policy must drive productivity and exports, rather than merely extending working hours.
“The 24-hour economy is not only for local consumption. If it were just for local consumption, we wouldn’t need a 24-hour economy, we already produce enough to feed ourselves. The goal is to export, which is why accelerated export is a key component of the 24-hour economy,” he explained.
He concluded with a blunt reminder to policymakers: “But when you send your products abroad, people won’t buy them just because they’re from Ghana or because you’ve launched a 24-hour economy. They will buy them because they are competitive and of high quality.”
