Exporters warn strong cedi alone won’t save Ghana’s economy amid high inflation

Some of Ghana’s leading exporters are cautioning that the recent rise in the cedi—while generally appreciated—could introduce new challenges for the export industry if inflation stays high and economic growth remains stagnant.

In an exclusive interview with Channel One TV, Anthony Pile, the Founder of Blue Skies Company Ltd., commended the government’s initiatives to stabilize the currency but warned that without more profound economic reforms, the advantages might be fleeting.

“Inflation is still hovering around 18%—it was at 21 or 22% just a few days ago. It’s quite challenging to pay 18% more for inputs while receiving less currency when converting your earnings into cedis,” he remarked.

While he recognized that importers are currently reaping the benefits of the cedi’s strength, Pile pointed out the negative impact on exporters who earn in foreign currencies.

“Importers are the ones benefiting right now. Fair enough, we [exporters] have had our share when the cedi was weak, and the favorable exchange rate gave us an advantage. However, any company that depends solely on the exchange rate for survival isn’t in a strong position,” he stated.

He cautioned that if inflation remains high, it could diminish the advantages gained from a stronger cedi.

“It doesn’t matter how robust the cedi is—if inflation stays at 18%, people will still feel the strain. But if we can reduce it and maintain economic growth, then both importers and exporters can thrive,” he clarified.

Despite the obstacles, Pile conveyed a sense of cautious optimism, echoing President John Mahama’s perspective that a cedi-to-dollar exchange rate between GH¢10 and GH¢12 is optimal for ongoing recovery.

He emphasized that Ghana’s long-term economic prosperity relies on three key elements: “a stable currency, low inflation, and a well-functioning economy. At this moment, it’s fair to say the economy hasn’t always been operating at its best.”