The Association of Ghana Industries (AGI) has expressed concern over the persistently high cost of production, citing it as a major obstacle to reducing the prices of goods and services. despite the recent appreciation of the Ghanaian cedi.
Speaking before the Parliamentary Select Committee on Trade, Industry, and Tourism, AGI’s National Treasurer, Raphael Ayitey, explained that the cost of raw materials remains elevated, making 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,” Ayitey stated. “This is a critical moment, and we must not lose the opportunity. The factors that previously weakened the cedi may simply be dormant and could resurface at any time.”
Drawing on his experience in the hospitality industry, Ayitey highlighted the sector’s reliance on imported goods, noting that approximately 75% of inputs are sourced from abroad.
“For example, consider basic items like towels and linens—where is Japan Textiles? I know the Minister is working hard on this, but we need to accelerate efforts to revive existing local industries and support potential new entrants. Speed is of the essence.”
Ayitey emphasized that while a sustained appreciation of the cedi could eventually ease prices, significant action is required to tackle production costs if Ghanaians are to feel any real relief in the marketplace.