Ghanaian Businesses Seek 60-Day Window to Slash Prices Amid Cedi Appreciation

The Ghana Union of Traders’ Association (GUTA) and the Association of Ghana Industries (AGI) have requested a 60-day window to reduce prices of commodities following the continuous appreciation of the cedi. This request was made during a meeting between the heads of GUTA and AGI and the Ministry of Trade, Industry, and Agribusiness on Wednesday.

Why the 60-Day Window?

According to the traders’ association, the 60-day window is necessary to allow for more time to ensure stability and predictability of the local currency and clearance of existing inventories. This move is expected to benefit consumers who have been grappling with high prices of goods and services.

Government’s Role in Price Negotiation

Mrs. Elizabeth Ofosu-Adjare, the Sector Minister, emphasized that although the government cannot regulate prices in a free market, it still plays a crucial role in negotiating prices of commodities. She noted that as the government creates an enabling environment for businesses to thrive, it’s fair for businesses to transfer some of their dividends to customers.

Direct Importers Agree to Reduce Prices

The Minister also revealed that direct importers have agreed to reduce their prices, with some already implementing the changes. This development is expected to bring relief to consumers who have been bearing the brunt of high prices.

Business Leaders’ Plea for Stability

Dr. Joseph Obeng, President of GUTA, urged the government to ensure stability of the currency to guarantee price reductions in the coming months. “We depend on our customers, the consuming public, to survive. As businesses, there’s no way we won’t share any gains when we have it,” he said.

Call for Fiscal Austerity

Dr. Humphrey Ayim-Darke, President of AGI, called for austerity in government expenditures to prevent erosion of gains made over the past months. “The stability is what we’re seeking to attain together. Currently, it’s an appreciation that we’re gaining, but for purposes of predictability and planning, we cry for stability,” he emphasized.

Impact on Consumers

This development is expected to bring relief to Ghanaian consumers who have been struggling with high prices of goods and services. With the cedi’s appreciation, businesses are under pressure to adjust their prices accordingly. The 60-day window will enable them to clear existing inventories and adjust their pricing strategies.

Economic Implications

The AGI and GUTA’s request highlights the need for stability in the currency market. A stable currency will attract investors, boost economic growth, and reduce the cost of living. The government’s efforts to create an enabling environment for businesses will likely yield positive results, including job creation and increased economic activity.

Source: Africa Publicity