By Elizabeth PUNSU, Kumasi
The cedi’s recent strengthening against the US dollar is expected to provide long-awaited relief to the country’s manufacturing sector, according to Thompson Atebilla, Ashanti, Bono and Ahafo Regional Manager-Association of Ghana Industries (AGI).
Speaking to Business and Financial Times (B&FT), Mr. Atebilla noted that the domestic currency’s appreciation is set to ease the cost of importing raw materials – particularly during off-peak agricultural seasons – thereby enabling consistent production and helping to stabilise prices in the market.
“The cedi’s appreciation means businesses will now require fewer cedis to purchase the same amount of foreign currency, which could support importation of supplementary raw materials to bridge seasonal supply gaps,” he said. “This will ultimately stabilise production cycles and prevent abrupt price hikes, especially in industries like soya bean processing.”
The manufacturing sector has traditionally relied heavily on agricultural inputs, making it susceptible to fluctuations linked to the cyclical nature of local crop production.
Mr. Atebilla highlighted that during harvest seasons prices of items such as cooking oil fall significantly due to abundant supply, only to surge again during lean periods.
The cedi has witnessed a sustained appreciation since March 2025. According to Bank of Ghana data, the local currency strengthened from GH₵15.53 to GH₵12.22 per US dollar on the interbank buying rate as of 19 May 2025.
The selling rate improved from GH₵15.55 to GH₵12.23 over the same period – reflecting a more than 21 percent gain in value.
Despite these gains, consumers are yet to experience corresponding reductions in commodity prices. Mr. Atebilla attributes this lag to lingering uncertainty within the foreign exchange market.
“There is still scepticism. Many traders are waiting to see whether this appreciation trend will hold for at least a month or two before making pricing decisions,” he explained.
He added that while most import transactions are pegged to the US dollar, the local market has historically been slow to adjust prices downward when the cedi gains value.
“Prices tend to rise rapidly when the cedi weakens, but fall sluggishly when it strengthens. If this appreciation continues, market competition will eventually compel price reductions,” he stated.
Meanwhile, to ensure that the benefits of the cedi’s appreciation are fully realised, Mr. Atebilla urged government to enforce regulatory mechanisms that guarantee exchange rate gains are reflected in consumer prices.
“Effective regulation will support domestic manufacturing by reducing input costs and protecting consumers from unfair pricing,” he stressed.
As the cedi continues to gain ground, he said, industry stakeholders are cautiously optimistic about the outlook – provided fiscal discipline, prudent monetary policy and external inflows remain stable in the coming months.
