Dealers at Abossey Okai, the largest hub for automobile spare parts in Ghana, have started to lower prices on essential products as the cedi continues to strengthen against the US dollar.
These price changes follow internal discussions and a meeting with the Minister for Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, regarding concerns about inconsistencies in market pricing.
Many traders within Abossey Okai report that the appreciating cedi has alleviated the financial burdens associated with importing spare parts.
This situation has enabled several shops to reduce their prices in an effort to provide relief to customers and uphold trust within the market.
According to the Abossey Okai Spare Parts Dealers Association, while the price reductions differ across various product categories, the overall trend within the community is anticipated to persist if the local currency maintains its current stability.
At the market, some dealers are already showcasing the effects of these changes.
Stephen Boakye, who specializes in thermostats and brake pads, informed Citi Business News that the difference is evident: “If you’ve heard that the cedi has appreciated against the dollar and that it has influenced prices, it’s accurate. I previously sold this brake pad for GHS 200, but now I can offer it for approximately GHS 100. This thermostat was priced at GHS 600 and is now available for GHS 400 due to a decrease in import duty as well.”
Other traders in Abossey Okai have also implemented price reductions, although not all have adjusted their prices uniformly.
Albert Kwamena, a dealer in leather seat covers, elaborated: “Yes, prices have decreased, but some of my colleagues have yet to lower theirs. I have. My seat covers were GHS 500 but are now GHS 450. Others that were GHS 700 now retail for GHS 650.”
Despite the price reductions, some dealers in Abossey Okai express that trading remains unpredictable. “Business fluctuates,” Stephen Asante remarked. “At times, sales increase, while at other times, it is quite slow,” he added.
The Spare Parts Dealers Association states that its objective is to achieve consistent and significant reductions throughout the entire market.
Takyi Addo, the Head of Communications for the Association, mentioned that Abossey Okai is dedicated to advocating for additional cuts as long as the economic conditions improve:
“A reduction of sixty to seventy percent is insufficient. We require more, at least an additional twenty to twenty-five percent. Had it not been for the budget presented last week, we could have witnessed reductions as high as ninety-nine percent. We anticipate even greater reductions by 2026.”
The Association asserts that it will persist in engaging its members to ensure that prices at Abossey Okai accurately reflect the strengthening cedi and provide relief to vehicle owners and mechanics nationwide.
