By Grace Zigah
Despite the recent appreciation of the Ghanaian cedi against major trading currencies, the government says it lacks the legal authority to compel traders to reduce prices of goods and services.
This stance, communicated by Minister for Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, highlights the limitations of government intervention in a liberalized economy, even amid mounting public frustration over high market prices.
Speaking on The Pulse on JoyNews, the Minister stated emphatically that Ghana’s market system is guided by free-market principles, where price controls are not enforced by the state.
“We all know that in Ghana, we don’t control prices, and so the government cannot really push price reduction on them,” she said, adding that cooperation, not compulsion, is the way forward.
Her comments come at a time when the cedi has gained significant strength in recent weeks, raising expectations that commodity prices, which were increased during periods of cedi volatility, would see a corresponding reduction.
Many consumers, struggling with the high cost of living, have expressed disappointment that prices remain stubbornly high despite the more stable exchange rate.
The Minister, however, pointed to a silver lining: the proactive steps being taken by the Ghana Union of Traders Associations (GUTA), which has begun engaging its members on the need to consider price reductions in response to the improved currency situation.
“I commend GUTA for even taking the step to prevail on the traders to reduce the cost of their goods,” she noted.
Ofosu-Adjare acknowledged that some traders are reluctant to adjust prices because they procured stock when the cedi was weaker.
But she suggested a balanced approach, where traders could average costs by blending older stock with new purchases made under more favourable exchange rates.
“They can take advantage of and buy some at this time as the dollar is low, put it together and find the averages,” she advised.
Her comments were echoed in a separate interview by GUTA President Dr. Joseph Obeng, who, appearing on PM Express, said many traders are hesitant to lower prices because they fear the cedi’s gains may not be sustainable.
“When the cedi appreciates, they see the gain, and it’s not sustained,” he said, describing traders’ caution as rooted in experience. “That’s why people are asking me, ‘Are you sure this is going to last?’”
Dr. Obeng explained that traders are wary of sudden shocks that could erode their profit margins if they lower prices too soon.
For him, what is more important than a short-term currency surge is the long-term predictability and stability of the exchange rate, which he believes can only be achieved through consistent and prudent fiscal and monetary policies.
“We have to talk about predictability and sustainability,” he emphasized. “This gain will come to nothing if we are not able to sustain it.”
According to the Trade Minister, the government has already laid a solid foundation by stabilizing the economy and strengthening the cedi.
She argued that it is only fair for traders—who benefit when the currency weakens—to also reflect gains in their pricing when the reverse happens.
“Anytime the cedi depreciates, traders increase their prices. It is just fair, it is just conscionable that prices are reduced to reflect the measures that the government has put in place,” Ofosu-Adjare said.
She added that such goodwill from traders could spur the government to sustain and even deepen reforms.
“If the traders are magnanimous enough, it will also encourage the government to keep on doing all the right things,” she noted, expressing confidence that ongoing dialogue between the government, GUTA, and other stakeholders will eventually lead to price adjustments that benefit the average Ghanaian.
