As calls intensify for the government to sustain the gains of the Ghana cedi, finance lecturer at the University of Cape Coast Business School, Dr. James Tuffour has urged a decisive shift in economic strategy. He insists that Ghana must significantly cut down on importing goods that can be readily produced locally if the country is serious about stabilizing its currency and building a resilient, self-reliant economy.
In a crafty but thought-provoking piece titled “The Cedi Dances: One-Step Forward, Multiples Backward,” Dr. Tuffour draws a powerful metaphor between the country’s traditional dances and the performance of the Ghanaian cedi.
The finance lecturer explains that just like dancers who exert massive energy in choreographed steps forward and backward, the cedi also moves. However, the dance of the cedi, historically, has unfortunately been more backward than forward.
But interestingly, he observes that the recent dance of the cedi has been very majestic. With this, he means the movement of the currency has been positive, showing strength against major trading currencies.
Just as dancers require energy to maintain their momentum, Dr. Tuffuour says the “cedi’s dance” also needs energy to be sustained.
To him, sustaining the cedi’s “majestic dance” will require more than short-term fixes. It demands a radical shift in economic thinking, especially around local production.
Among a number of suggestions, the finance lecturer says one the continued importation of goods that can be produced locally can sap the energy from the cedi’s dance.
He cannot fathom why Ghana should continue to spend dollars to import simple things that are not difficult to produce locally. In his view, local entrepreneurs should be empowered to produce items such as jute bags, sanitary pads, and even jewelry, which we spend millions of dollars to import, but have all the needed inputs to produce locally.
Why should we import jute bags to store our cocoa in this 21st century when the production of these materials isn’t complex? The young Ghanaian entrepreneur should be resourced to take over production and supply. Again, why should we import toiletries and sanitary products worth millions of dollars when young women could be empowered to produce these with locally-sourced materials?” he quizzed.
He added, “Why should we import jewelry from UAE, India, and Switzerland, where the artisanal goldsmith struggles to buy gold in a major gold-producing country?”
Dr. Tuffour’s position resonates with a growing body of thought in Ghana’s economic discourse that import substitution is a major fuel to sustain the cedi.
He warns that the cedi’s stability could be eroded without a long-term plan that focuses on value addition, innovation, and job creation through local industry.
“Today, as the Cedi dances majestically, we should be thinking about preparing some food and water to fuel her energy, that’s all about sustainability,” he remarked. Without proactive measures, the finance lecturer fears the cedi will resume its chaotic dance in no time.
