Traders at Tema Station market are pushing back against public demands for immediate price reductions, stressing that their current stock was purchased when the Ghanaian cedi was significantly weaker.
Although the cedi has recently strengthened against the US dollar which is trading at around GH¢13.50 as of Monday, many traders say they are unable to lower prices yet because the goods they are currently selling were imported at higher exchange rates.
Aunty Yaa Akyea, a retailer of electronic products, explained, “I bought these goods when the dollar was about ¢16. That’s the cost we’re working with. The cedi’s appreciation now doesn’t change the price of goods we already paid for.”
Maame Adu Pokuase, who also sells fruits and vegetables also said, her supplier sold fruits to her at when the dollar was at $1 to ¢16, so she can not reduce the prices because she will not gain profit.
She said until her suppliers reduced prices, she would still sell at the same old price.
Madam Celestine Apor, a trader in groceries, echoed that, until we restock using the new exchange rate, we can’t reduce prices. It’s not that we don’t want to, it’s just not realistic when the old stock cost us more.”
Their comments come amid rising public expectations for price cuts following the cedi’s recent rebound, which has reversed months of depreciation.
Some consumer groups and associations, including the Food and Beverage Association of Ghana, have noted early signs of price drops. But traders say the impact is still minimal.
“A sack of onion that was GH¢800 is now around GH¢770, but that’s just one item,” another trader noted. “Wider reductions will only come if the cedi remains stable and we can buy our next stock at better rates.”
However, the president of the Ghana Union of Traders’ Associations (GUTA) says the reason prices of goods remained high despite the cedi’s recent gains is that the traders don’t trust that the gains will last.
Dr. Joseph Obeng, President of GUTA, said traders have been cautious because of what they’ve experienced in the past.
“When the cedi appreciates, they see the gain, and it’s not sustained,” he explained.
“That’s why people are asking me, especially when I made the call to reduce prices, ‘Are you sure this is going to last? Are you not rushing?’”
Nonetheless, the Minister for Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, has also said that the government cannot push traders to reduce prices despite the recent appreciation of the cedi, but insists there is room for fairness.
The Minister explained that Ghana operates a liberal market system where the government does not fix prices. “We all know that in Ghana, we don’t control prices, and so the government cannot really push price reduction on them. But because we work together, we can always discuss and see how the stable cedi will benefit both consumers and traders,” she said.
She pointed out that traders have often increased their prices when the dollar goes up, so it is only fair for them to adjust prices now that the cedi has appreciated.
“If the dollar is this stable and has appreciated this much, I think that we need to regroup and see the way forward,” she stated.
Madam Ofosu-Adjare praised the Ghana Union of Traders Association (GUTA) for taking the initiative to engage its members on possible price reductions.
“I commend GUTA for even taking the step to prevail on the traders to reduce the cost of their goods. So I think at that meeting, we will brainstorm and come to a very good conclusion which will benefit both traders and consumers,” she said.
The Minister acknowledged concerns from some traders who argue that they purchased their goods when the exchange rate was higher. However, she believes a balanced approach can be adopted.
For now, traders are urging patience, explaining that any meaningful price drop will take time to reflect in the market.
