The Lower Exchange Rate Is Collapsing Ghana’s Manufacturing Base – Kwadwo Poku

In an Official Facebook Post on 23 October 2026, Kojo Anane Sokondo shared the concerns of NPP communications team member Kwadwo Poku, who strongly criticized the Bank of Ghana’s handling of the exchange rate. According to him, the continuous lowering of the exchange rate is having devastating effects on Ghana’s manufacturing sector, particularly exporters.

Poku explained that exporters earn their revenue in US dollars when they sell goods abroad, but upon repatriating those proceeds into Ghanaian cedis, the lower exchange rate reduces the value they receive. This means that businesses lose a significant portion of their expected income, making it difficult to sustain operations, pay workers, or reinvest in production. He argued that this situation is not just a temporary inconvenience but a structural problem that is gradually collapsing Ghana’s manufacturing base.

The manufacturing sector, already struggling with high utility costs, limited access to credit, and competition from imports, now faces the added burden of unfavorable currency conversions. For exporters who rely on dollar inflows to stabilize their businesses, the reduced returns discourage production and weaken confidence in the sector. Poku’s warning highlights the broader tension between monetary policy and industrial growth: while stabilizing the cedi may appear beneficial for controlling inflation and consumer prices, it risks undermining the very industries that drive economic resilience and job creation.

His remarks also touch on a recurring debate in Ghanaian economic policy — whether the focus should be on short‑term currency stability or long‑term industrial expansion. Supporters of the government may argue that a stronger cedi protects ordinary citizens from inflationary shocks, but critics like Poku insist that the policy sacrifices the backbone of the economy. Manufacturing companies, he noted, are closing down or scaling back operations, which in turn threatens employment and weakens Ghana’s ability to compete internationally.

Public reaction to his statement is likely to be divided along political and economic lines. Some will see it as a necessary critique that draws attention to the plight of exporters, while others may dismiss it as partisan rhetoric. Regardless, the issue he raises is critical: without a balanced approach that protects both consumers and producers, Ghana risks losing its manufacturing capacity and deepening its dependence on imports.

Ultimately, Poku’s words serve as a cautionary reminder that exchange rate management cannot be divorced from industrial policy. The collapse of manufacturing would not only affect exporters but ripple across the entire economy, undermining growth, jobs, and national development. His call is therefore for a rethink of monetary policy to ensure that Ghana’s manufacturing base is protected and strengthened rather than eroded.

Source: Kojo Anane Sokondo, Official Facebook Post, 23 October, 2026.