The government has announced plans to engage sachet water manufacturers and producers as part of efforts to stabilise prices and protect consumers from rising production costs. The move comes amid concerns over an impending price increase in the sector.
Chief Commercial Officer and Director of Industrial Development at the Ministry of Trade and Industry, Kofi Addo, revealed the plan during an interview on JoyNews’ AM Show on Monday, April 6. He said the government acted swiftly after receiving indications that prices could rise.
“You will recall, last week, we had the message that this increment was coming on board,” Mr Addo said. “And as a ministry, for the protection of our consumers and to ensure price stability in the environment, we quickly started the engagement with the manufacturers and producers.”
Mr Addo explained that the immediate priority is to stabilise the market while involving all stakeholders in the value chain to find a sustainable solution. “So all that we did is to make sure that we bring stability and to protect our consumers,” he added.
A key meeting scheduled for Wednesday will bring together manufacturers and producers to discuss the factors driving the price increases, particularly rising production costs. “What we are doing is that we are having this meeting to understand the issues that led to the increment,” he said. “We also want to make sure that all the other players are brought on board so that when we come out with the solution, everybody will be happy along the value chain.”
On the urgency of the engagement, Mr Addo stressed: “On Wednesday, we are bringing the manufacturers and the producers to make sure that these issues are resolved with the speed of light.”
Addressing concerns about reliance on imported raw materials, especially polymers used in production, he confirmed that the government is exploring local alternatives. “As a ministry, we are very concerned about feeding the industry with available raw materials. In fact, that has been our mandate since the government took over,” he said. “So what we are doing right now is speaking to other stakeholders in the value chain to see if we can have locally available polymers, which are the main ingredients in sachet production.”
Mr Addo added that discussions are ongoing to determine the feasibility of local sourcing to reduce exposure to global price fluctuations. He also highlighted the impact of external economic pressures, including disruptions in global supply routes. “The economic environment is also good apart from this war and the closure of the Straits of Hormuz, which is not allowing people to get their imports. That is why this price increment came about,” he said.
The government is pursuing both local and external sourcing options to ensure competitive pricing for producers. “If we are not able to get these raw materials locally, we will get them so that we will be able to have a competitive import price to support our producers,” Mr Addo stated.
He further confirmed that the Ministry will engage the Bank of Ghana regarding concerns about the rejection of lower denomination coins, such as 10 and 20 pesewa coins, by some traders, citing past positive outcomes from similar engagements.
