Several leading exporters in Ghana are expressing concerns that the recent rise in the value of the cedi—while generally appreciated—could introduce new challenges for the export industry if inflation remains elevated and economic growth continues to be sluggish.
Anthony Pile, the Founder of Blue Skies Company Ltd., in a special interview with Channel One TV, commended the government’s initiatives to stabilize the currency but warned that without more profound economic reforms, the advantages might be temporary.
“Inflation is currently around 18%—it was 21 or 22% just a few days ago. It is quite challenging to pay 18% more for inputs while receiving less currency when converting your earnings into cedis,” he remarked.
While recognizing that importers are presently benefiting from the cedi’s strength, Pile pointed out the negative implications for exporters who earn in foreign currencies.
“Importers are currently the beneficiaries. Fair enough, we [exporters] have enjoyed favorable conditions for some time when the cedi was weak, and the exchange rate advantage provided us with a boost. However, any company that depends solely on the exchange rate for its survival is not in a favorable position,” he stated.
He cautioned that if inflation remains high, it could diminish the benefits of a stronger cedi.
“The strength of the cedi is irrelevant—if inflation persists at 18%, people will continue to feel the strain. However, if we can reduce it and maintain economic growth, then both importers and exporters can benefit,” he clarified.
In spite of the difficulties, Pile conveyed a sense of cautious optimism, resonating with President John Mahama’s perspective that a cedi-to-dollar exchange rate between GH¢10 and GH¢12 is optimal for ongoing recovery.
He further emphasized that Ghana’s long-term economic prosperity relies on three fundamental elements: “a stable currency, low inflation, and a well-functioning economy. At this moment, it is fair to assert that the economy has not consistently been operating at its full potential.”
