Stability, not strength or weakness of cedi, matters most — AGI CEO

The Chief Executive Officer-Association of Ghana Industries (AGI), Seth Twum Akwaboah, has stressed that the cedi’s stability is more critical for the country’s economic development than its short-term fluctuations in value.

Speaking at the Association’s Tema annual general meeting (AGM), Akwaboah commended government for improvements in the macroeconomic environment this year – citing reductions in the policy rate, declining inflation and relative stability of the exchange rate. “We’ve seen the policy rate drop quite significantly, inflation has come down and the exchange rate has worked reasonably well – to the extent that at one point we even witnessed significant appreciation of the cedi,” he said.

He however cautioned against over-emphasising the cedi’s appreciation or depreciation, stressing that predictability is what businesses need most. “It is not the appreciation that’s so important, neither is depreciation – which is bad; stability is what we want. If you can predict your currency for a period of time, you will be able to plan your business,” he explained.

Despite the relatively positive outlook, it was revealed at the AGM that several companies are struggling as the cedi’s recent appreciation has led to an influx of parallel imports. Mr Akwaboah noted that while cheaper imports benefit consumers, the surge in under-declared and under-invoiced goods – often smuggled – poses a serious threat to local industries. “It is not just the imports that are coming in, people are taking advantage to smuggle goods into the country. Under-declaration and under-invoicing affect local industries,” he said.

He therefore urged government to strengthen its surveillance systems to clamp down on such practices and provide targetted support for local companies that are suffering losses due to cheaper foreign competition. The AGI further called on government to prioritise the fight against parallel imports as a way of safeguarding domestic industries and giving traction to the 24-hour economy policy through import substitution.

Members also expressed dissatisfaction over the absence of Customs officials at the AGM, a key stakeholder expected to address persistent delays in clearing goods at the ports – delays which often result in demurrages caused by systemic failures in documentation. It was agreed that Customs officials will be included in all future AGI meetings, including AGMs.

The Tema Regional Chairman-AGI, Eddie Akwetey, also highlighted a need for cheaper and more reliable energy supply to support industries. He urged the association to intensify efforts aimed at bringing all companies in the Ningo-Prampram district under the Tema chapter, while encouraging members to take advantage of available land in the area for industrial expansion.

The AGM further provided a platform for prospective aspirants to interact with members ahead of AGI executive elections scheduled for 27 November 2025.

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