The President of the Association of Ghana Industries (AGI), Kofi Nsiah-Poku, has cautioned that Ghana’s recent currency gains do not necessarily signal a strong or stable economy, warning that industry players remain unconvinced about the durability of the recovery.

Speaking on PM Express Business Edition, he said businesses are hesitant to make major pricing or operational adjustments because they are unsure whether current improvements in the cedi can be sustained.

“Industry still does not think that the economy is so robust,” he said.

Dr Nsiah-Poku explained that manufacturers are still recovering from losses suffered during the period of a weak currency, when the high dollar drove up production costs. According to him, companies are now focused on stabilising their finances rather than rushing to reduce prices.

“At the time that the dollar was very high, I was making losses. Now that the dollar price is low, I have to recover the loss,” he noted.

He added that Ghana’s largely credit-based business environment also increases risk, as manufacturers often receive payments months after supplying goods. A sudden reversal in exchange rate gains during that period could erode margins.

Beyond currency concerns, he highlighted high utility tariffs as another burden on industry, arguing that production costs remain elevated even as the dollar declines.

His comments suggest that while the cedi’s appreciation may point to macroeconomic improvement, manufacturers are prioritising long-term stability over short-term optimism as they navigate ongoing operational and financial pressures.