Economic crunch: Government must act fast to avert collapse of industries – AGI

The Association of Ghana Industries (AGI) has called on the country’s economic managers, to as matter of urgency, address the persistent depreciation of the Ghana Cedi against major trading currencies, particularly the US dollar. According to Vice President in charge of Large Manufacturing under the AGI, Ashok Mohinani, stressed that the development has resulted in high-cost inputs which are significantly impacting the sustainability of local manufacturing industries in Ghana. He added that the performance of the local currency will likely result in the collapse of industries operating in the country and therefore wants government to act fast in averting a potential collapse. “At the moment, there is quite a lot of speculations and the biggest issue is the currency and we are nearly hitting GH¢15. I think more communication will be very helpful”. “Most inputs costs have gone up and the factories are facing issues of sustainability on whether they can survive. But if the government and others will communicate, I think that will calm nerves”, Mr Mohinani is quoted by Joy Business. Meanwhile, the cedi has in the past few weeks experienced unprecedented depreciation against the US dollar. The currency has now been ranked by Bloomberg as the worst-performing currency in the world against the US dollar, overtaking the Sri Lanka Rupee. Checks by GhanaWeb Business to some forex bureaus in Accra show the cedi is selling around GH¢14.75 to the dollar as of October 21, 2022. The development has since forced members of the Ghana Union of Traders' Associations to close down their shops in Kumasi in the Ashanti region and subsequently the Central Business District in Accra. MA/FNOQ