As Ghana’s economy shows signs of stabilising, marked by falling inflation and a stronger cedi, businesses are hoping that this progress will soon translate into meaningful relief from persistently high production costs.
Speaking in an interview with The High Street Journal, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, said the time had come to move beyond emergency stabilisation policies toward measures that actively support growth and competitiveness.
“Inflation control is good, but it’s necessary, not a sufficient condition for economic development,” he explained. “We’ve managed to stabilise some of the indicators, so now it’s time to focus on development.”
For businesses, interest rates remain a particular concern. While recent monetary tightening may have helped to slow inflation, borrowing costs for many firms remain well above 30%, feeding into the already high cost of production. Mr. Badu-Aboagye suggested that a more balanced approach is needed, one that takes into account both monetary and real-sector inflation pressures.
“You can tighten all the monetary policies you want, but if costs like electricity, water, and taxes keep going up, inflation won’t come down the way you expect,” he said. “Businesses need some relief to be competitive.”
He also pointed to energy costs as a major challenge, arguing that high tariffs undermine Ghana’s ambition to develop its manufacturing base and compete internationally.
“A manufacturer in Ghana pays between 12 and 15 cents per kilowatt-hour for electricity,” he noted. “In other economies focused on manufacturing, it’s less than 5 cents. We need to look at these issues carefully if we want our businesses to compete.”
For the GNCCI, the message is ultimately one of partnership. As the Bank of Ghana prepares for its next policy decision, the Chamber hopes for a more supportive stance, one that recognises that reducing production costs through lower borrowing rates is not just good for business but for the broader economy.
