The Ghana Food and Beverages Association has assured consumers of a reduction in prices of goods by the end of June, following the recent appreciation of the Ghanaian cedi against major international currencies including the US dollar, euro, and British pound.
The strengthening of the cedi has sparked renewed optimism around Ghana’s macroeconomic outlook.
However, the General Secretary of the Association, Samuel Aggrey, says that despite expected price cuts on imported goods, challenges still remain—particularly for local manufacturers.
Speaking on Morning Starr with Naa Dedei Tettey, Mr. Aggrey explained that high production costs, especially energy tariffs and taxes, continue to hinder local manufacturing.
He questioned recent decisions by the Public Utilities Regulatory Commission (PURC), particularly the increase in electricity tariffs that took effect on May 1st.
Mr. Aggrey called on the PURC to urgently reverse the hike in energy tariffs in response to the cedi’s improved performance.
He stressed that without such intervention, it would be difficult for local manufacturers to pass any cost savings on to consumers.
According to the Association, while imported goods may soon see price reductions, sustained relief for consumers and a boost to local production will only be possible if structural costs, especially energy are reviewed downwards.
He said, “We also have an immediate concern that has to do with local manufacturing. So the cost of production was a problem and we discussed that at length, in that if you look at the cost of electricity if you look at the cost of water and some of the corporate taxes that these business has to pay. It’s really not beneficial to anyone so therefore we should look at it, especially when the PURC announced an immediate increase on 1st May based on the depreciation of the cedi. So the cedi gaining its strength from the 1st May. Then you ask yourself, why would there be the need to increase at that time?”
“So we said they should take a look at that and then as it were as a matter of urgency that PURC also should Come back and then announce this reduction. Otherwise, it will very very difficult for the local manufacturers to reduce the cost of their production because These things will not help if you look at the value of the cedi that was somewhere last week was around 16% but the energy costs also went out by 14% so you look at it and then you genuinely ask that immediately they should take steps to reduce that so that it also further go to further give the manufacturer to Consider reducing certain percentages. Otherwise, it will not help.”
