Cedi Stability: The Bedrock of Ghana’s Economic Growth
The Association of Ghana Industries (AGI) emphasizes that the enduring stability of the Ghanaian cedi is more crucial for sustainable economic advancement than its short-term fluctuations. This perspective, shared by AGI’s Chief Executive Officer, Seth Twum Akwaboah, underscores the critical role of predictability for businesses operating within the Ghanaian economy. The pronouncements were made during the Association’s annual general meeting held in Tema.
Predictability: The Currency of Business Success
Akwaboah recognized the government’s efforts in improving the macroeconomic landscape. He cited positive developments such as reduced policy rates, declining inflation, and the comparatively stable exchange rate. “We’ve seen the policy rate drop quite significantly, inflation has come down and the exchange rate has worked reasonably well – to the extent that at one point we even witnessed significant appreciation of the cedi,” he noted. While acknowledging these improvements, Akwaboah cautioned against an overemphasis on either appreciation or depreciation of the cedi. He stated that businesses need predictability to thrive. The core issue, he indicated, lies in consistent performance, which allows businesses to make long-term investment plans with more confidence. This approach is particularly relevant for Ghanaian businesses, which require a stable financial environment to compete and grow, not just a strong or weak cedi, but a cedi that performs steadily.
Keywords
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