File photo of garment manufacturing company
The Association of Ghana Industries (AGI) national treasurer, Raphael Ayitey, has raised concerns about the high cost of production, which is restricting businesses from reducing prices despite the recent appreciation of the cedi.
In a report by citinewsroom.com, he said this before the Parliamentary Select Committee on Trade, Industry, and Tourism, pointing out that the elevated cost of raw materials remains a significant challenge.
Ayitey noted that the industry relies heavily on imported goods, with approximately 75% of inputs sourced from abroad.
This makes it difficult for businesses to pass on the benefits of a stronger cedi to consumers.
“Unless we can lower the cost of production, it will be impossible to sustain the gains made with the currency’s recent appreciation,” he stated.
He warned that the factors that previously weakened the cedi may simply be dormant and could resurface at any time, underscoring the need for urgent action.
“This is a critical moment, and we must not lose the opportunity” Ayitey urged.
He emphasised the need for a comprehensive approach to address the high cost of production and ensure that the benefits of a stronger cedi are passed on to consumers.
By reducing the cost of production, consumers can enjoy lower prices for goods and services.
DR/EB
Watch as ongoing GRNMA strike disrupts healthcare, leaves patients stranded
Meanwhile, BECE 2025 kicks off across Ghana as over 600,000 candidates sit exams