Prices of spare parts to drop
Prices of spare parts in the market are expected to fall significantly—by as much as 90 per cent—from next year, in response to improvements in the economy, the Abossey Okai Spare Parts Dealers Association has projected.
The association explained that this anticipated reduction would largely stem from the removal of the COVID-19 Health Recovery Levy, the reduction of the effective VAT rate from 21.9 per cent to 20 per cent, and the increase in the VAT registration threshold from GH¢200,000 to GH¢750,000 as outlined in the 2026 Budget.
It insisted that prices of brand-new spare parts have already experienced reductions with regards to the appreciation of the cedi against the major international currencies, and that prices of used spare parts were expected to follow the same trend soon.
It added that prices of brand-new spare parts have already begun to decline due to the appreciation of the cedi against major international currencies, and that prices of used spare parts were expected to follow the same trend soon.
The Head of Communications of the association, Takyi Addo, who made this known when the association’s leadership paid a working visit to the Ghana Shippers’ Authority (GSA) in Accra, stated that many dealers have already reduced their prices by about 60 per cent, though the public may not have fully noticed.
“At Abossey Okai, we have already reduced prices by up to 60 per cent for brand-new spare parts; but the prices of second-hand parts will only drop once the tax and VAT reforms take effect in 2026.
“We are ready to adjust again if the signs stay positive. We want consumers to know that we are not against them,” he said.
The meeting
The delegation from the association, led by its Head of Communications, Mr. Takyi Addo, and supported by the General Secretary, Gifty Fianu, paid the visit as part of ongoing engagements to address challenges affecting the spare parts industry.
They were received by the Chief Executive Officer of the Ghana Shippers’ Authority (GSA), Prof. Ransford Gyampo, together with the Deputy CEO in charge of Technical Operations, Asana Owu, the Head of Freight and Logistics, Fred Asiedu Dartey, and a team of senior officials.
Discussions at the meeting centred on high cost of doing business at the country’s ports, a persistent challenge that both traders and shipping service providers agreed was undermining competitiveness and threatening the affordability of imported spare parts.
Assurance
Mr Addo stated that the removal of the COVID-19 levy would provide significant relief to importers, reduce import duties and ultimately lower the overall cost of doing business at the country’s ports.
“I can assure you that in 2026, you will witness even greater reductions in the prices of spare parts, largely influenced by the incentives the government has outlined in the national budget.
“These anticipated price cuts would also be supported by sustained currency stability, a continued decline in inflation, and an expected drop in the policy rate by “at least 1,000 basis points all of which would create a more favourable trading environment,” he said.
Going forward, he said market competition itself would begin to push prices down, as there would come a time when dealers would be unable to increase prices arbitrarily because customers would simply refuse to patronise overpriced products.
Weaken public confidence
For his part, Prof Gyampo explained that the local currency has picked up strength in recent weeks and inflation was slowing, yet prices of spare parts remain high on the market.
He stressed that this gap weakens public confidence, especially at a time when the government was trying hard to ease business pressure across the country.
He stated that the Ministry of Finance (MoF) was setting up a committee to review all duty cost components at the ports, and the GSA would take an active seat on that committee.
He said the GSA would use that seat to push for fairer charges for shippers, cargo owners and service providers.
Prof Gyampo urged the dealers to respond to the improving economy with responsible pricing.
“When the cedi finds its feet, our markets must follow. This is the moment to show that business thinks about the people, not only about markups.
“We will plead that us we do our best you also reciprocate to demonstrate patriotism so that at the end of the day we all have our burden lighten,” he said.
