The President of the Association of Ghana Industries (AGI), Kofi Nsiah-Poku, says the recent appreciation of the cedi is not enough to prompt immediate price reductions, as many manufacturers are still recovering losses recorded during the period of a weak currency.

He explained that when the dollar was high, producers absorbed significant costs and are now focused on recouping those losses.

“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 said.

He noted that exchange rate movements are only one factor influencing prices and stressed that uncertainty about the sustainability of the cedi’s gains makes businesses cautious.

“Industry still does not think that the economy is so robust,” he added, speaking to Joy News.

Dr Nsiah-Poku also pointed out that Ghana operates largely as a credit economy, where manufacturers supply goods on credit and are paid months later, creating risks if the currency weakens again before payments are made.

“This is a credit economy… if the gain has reversed, what do I do?” he asked, explaining why companies are hesitant to cut prices quickly.

Beyond currency concerns, he cited high utility costs as another pressure on production, arguing that tariffs should reflect the stronger cedi, especially when expenses are tied to foreign exchange.

Overall, he said stability and sustainability are more important to industry than short-term currency gains, as manufacturers continue to navigate exchange rate volatility, credit risks and rising operational costs.