Prices of goods to drop by end of May — TAGG
Consumers can expect to see a significant drop in the prices of products on the market by the end of May, the President of the Traders Advocacy Group Ghana (TAGG), David Kwadwo Amoateng.
He said the anticipated price reductions follow the recent appreciation of the cedi against major trading currencies, particularly the US dollar.
Additionally, he said duties at Ghana’s ports, which are pegged to the US dollar, will also reduce in line with the stronger local currency.
He said this combined effect of a lower exchange rate and reduced dollar-indexed port charges will soon reflect on the market to provide much-needed relief to households struggling with high costs of living.
While official data from the Ghana Statistical Service (GSS) shows inflation dropping to 21.2 per cent in April from 22.4 per cent in March, and the cedi has maintained relative stability against the dollar weeks now, consumers are yet to feel relief at the checkout counter.
In an interview with the Graphic Business, Mr Amoateng said “about 80 per cent of our goods are imported and the top reduction of the exchange rate started just two, three weeks ago.
It takes a minimum of three months to finish production, shipping, and clearing before goods hit the market.”
He explained that most of the goods currently being sold were imported at an exchange rate of around GH¢16 to the dollar.
However, he said the recent decline in the exchange rate to about GH¢13.10 would influence the next batch of imports, which will reflect in market prices from May ending to June.
The TAGG president listed key commodities expected to see price reductions, including rice, cooking oil, clothing, shoes, and other imported household items.
Advise
In the interim, Mr Amoateng advised consumers to exercise patience and also adopt a more strategic approach when shopping by comparing prices across different outlets to ensure value for money.
“When we go outside to import goods, we visit more than 18 factories before settling on one. We expect prices to begin falling at the end of this month. Consumers should be patient, compare options and buy responsibly so they can benefit fully from the expected reductions,” he added.
Mr Amoateng assured consumers that majority of traders were responsible and will adjust prices downward when market conditions permit.
“We are traders and also consumers. When it’s time to reduce prices, we will not hesitate,” he stated.
Govt’s effort
Commending the government for its effort in the current stability, he said “I’m a businessman. Last month, when I did my transfer to purchase goods, I was able to save $2,350 compare to the previous month.
He further lauded the government’s efforts in boosting the country’s gold reserves through the Gold for Oil programme and the establishment of the Gold Board.
“If we make a conscious effort to ensure that all gold exiting the country goes through the Gold Board, our currency will become stronger. Look at Britain and Dubai—they don’t produce much, but their currencies are strong because of gold reserves,” he noted.
Power crisis
On the issue of the recent power outages, Mr Amoateng expressed concern about its impact on production and called for immediate and sustainable solutions.
“The kind of dumsor we’re experiencing doesn’t help businesses. Government should bring all the experts together and solve this issue once and for all,” he urged.
Sustainability
Meanwhile, in a separate interview, economist, Professor Godfred Alufar Bokpin, emphasised that the current stability was not solely the result of interventions and reforms implemented by the new administration, given that they have been in office for only about five months.
He explained that the economy was operating below full capacity due to significant budget cuts in the 2025 budget adding that with the IMF supported programme set to end the year, fiscal pressures and increased government spending could test the country’s economic resilience.
He urged that real sectors like agriculture required stronger investment to sustain long-term stability.
“For instance, if you look at the budgetary allocations to the Ministry of Food and Agriculture (MoFA), they are not enough to drive the level of development we need.
“So, while we appreciate the current stability, the government must work hard to anchor it on sound economic fundamentals like robust real sector development, improvement in fiscal performance and a strong external balance. If we do that, we can sustain stability for the long term, and it will be more predictable,” he stated.
Last Friday, the Finance Minister, Dr Cassiel Ato Forson, assured stakeholders that the recent cedi appreciation was not a fleeting development but the result of deliberate and strategic economic management.
“I want to use this opportunity to assure all of you that what you are seeing — the appreciation of the cedi — will not only continue but will be sustained. This is not a nine-day wonder. There will be stability, the cedi will be stronger, and we expect you to support these efforts so that Ghanaians can feel the impact,” he said.