The Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo, has called on the government to strengthen the country’s buffer stock, particularly in the agricultural sector.
This, he believes, is a critical measure needed to boost the performance of the cedi against the dollar, which currently stands at GHS16 to the US dollar.
Akpeloo made this recommendation during an interview on Business Fix on Wednesday, September 11, 2024.
Speaking on the current state of the currency ahead of the upcoming general elections scheduled for December 7th and the festive season, Akpeloo emphasized the importance of reducing the country’s dependence on imports.
“We must beef up our buffer stock in the agricultural sector to ensure that we can source some of the raw materials locally,” he said.
Akpeloo explained that about 70% of goods used in Ghana are imported, creating a high demand for foreign currency.
He noted that the reliance on imports is not only limited to consumer goods but also extends to raw materials for Ghanaian industries.
“Most of our industrial establishments rely heavily on raw materials from abroad. What this means is that the local economy is unable to generate the materials needed to power our industries,” Akpeloo explained.
This reliance, he added, puts significant pressure on the availability of dollars in the market.
Akpeloo’s remarks highlight a larger economic issue facing Ghana, where the demand for foreign exchange continues to outstrip supply.
He urged stakeholders to invest in local production and improve the agricultural sector’s capacity, stressing that reducing import dependence is crucial for stabilizing the cedi and ensuring sustainable economic growth.
