Ghana’s Industrial and Real Estate Leaders Signal Alarm as High Operational Costs Persist Despite Strengthening Cedi

Industry and real estate leaders in Ghana are sounding the alarm over a disconnect between the appreciating cedi and the stubbornly high costs of goods and operations. While the national currency has seen recent gains against the US dollar, both the Association of Ghana Industries (AGI) and the Ghana Real Estate Developers Association (GREDA) warn that structural issues—including severe utility crises and high interest rates—continue to stifle growth and keep consumer prices elevated. The organizations argue that currency appreciation alone is insufficient to stabilize the economy without addressing the high cost of doing business.

Dr. Kofi Nsiah-Poku, President of the AGI, has highlighted a critical situation for manufacturers, particularly those in the beverage sector. A worsening water crisis has led to severe rationing, with some factories receiving water for only six hours twice a week, forcing them to source water externally at a high cost. Furthermore, Dr. Nsiah-Poku explained that many manufacturers are still struggling to recover losses incurred during previous periods of heavy currency depreciation. Because many transactions in Ghana are conducted on credit, businesses are often cautious about adjusting prices immediately following currency gains, preferring to wait for sustained stability.

Simultaneously, the real estate sector is grappling with the high cost of essential building materials. GREDA Executive Secretary Samuel Amegayibor has criticized suppliers of cement and iron rods for maintaining inflated prices based on outdated exchange rates. GREDA argues that while the cedi has strengthened, suppliers have been slow to reflect these gains in their pricing, which threatens the viability of the construction industry and makes housing increasingly unaffordable. The association is calling for greater pricing transparency and more discipline among market suppliers to align costs with current economic realities.

Beyond immediate pricing, the AGI contends that high utility costs and prohibitive interest rates are distorting economic incentives and discouraging borrowing. This environment has led to stagnant industrial growth and rising unemployment across the country. Both the AGI and GREDA are now calling for urgent government intervention to implement infrastructure reforms—particularly in water and energy supply—and to enforce market transparency. As Ghana navigates these economic complexities, industry leaders emphasize that long-term industrialization and consumer relief will only be possible if the underlying operational hurdles are effectively addressed.