Industries Welcome Cedi Recovery, Exporters Demand Predictable Stability – Mr. Seth Twum Akwaboah
Chief Executive Officer of the Association of Ghana Industries, Mr. Seth Twum Akwaboah, has welcomed the recent appreciation of the Ghana Cedi against the US Dollar, describing it as a positive development for local industries. However, he cautions that the focus must shift towards sustainability and long-term stability rather than short-term excitement.
Speaking on Kessben TV’s Maakye Show, Mr. Akwaboah explained that many industries depend heavily on imported raw materials for production, and a weak Cedi significantly impacts their operational cost. “When there is a depreciation in the Cedi, industries suffer because you need so much Cedi to buy the same amount of dollars for raw materials. But now that there is appreciation, it is a good thing and what we hope for is that it can be sustained for a long time,” he said.
Addressing public calls for a reduction in the prices of goods due to the Cedi’s current performance, Mr. Akwaboah noted that while port charges have seen marginal reductions due to the improved exchange rate, the immediate impact on goods pricing may not be drastic. “Some of the goods currently on the market were imported before the appreciation. Manufacturers want to recover the costs based on the old rates. If the appreciation continues for a reasonably long period, prices will gradually come down,” he clarified.
He further emphasized the importance of stability over sudden fluctuations, especially for exporters. “When there is a strong currency, export does not look attractive because your returns in local currency are low. But exporters are not wishing for a weak currency either. What they want is predictability and stability to help them plan,” Mr. Akwaboah explained.
He reiterated the need for Ghana to boost local production and reduce dependence on imports, which, in his view, will reduce pressure on the Cedi and ensure long-term appreciation. “We shouldn’t be overly excited because of the short-term gains. What matters is sustainability. We must increase our local production volumes and reduce our imports,” he advised.
Mr. Akwaboah concluded by urging policymakers to focus on strategic policies that support industrial growth, increase export competitiveness, and maintain currency stability for the benefit of the economy at large.
By: Gifty Bediako Yamoah
