By Prince Antwi
Executive Secretary of the Food and Beverage Association of Ghana, Sam Aggrey, says the recent appreciation of the Ghanaian cedi is not yielding real benefits for the business community due to a lack of complementary tax relief measures.
Speaking on JoyNews’ PM Express on Thursday, July 3, Aggrey argued that while the local currency has strengthened against the U.S. dollar, businesses are still reeling from the earlier sharp depreciation and ongoing high taxes—particularly at the ports.
“Dollar depreciation is not being felt at all,” he said. “When the cedi fell from ¢3.80 to over ¢16, the losses to investors and the country were massive. Now that it’s appreciating, we’re still paying the price for the damage already done.”
Aggrey noted that many businesses have yet to recover from the financial shocks caused by the cedi’s earlier decline. He likened the situation to being hit twice by the same blow—first by the depreciation, and now by the lack of relief despite the currency’s rebound.
“Yes, it’s good that the cedi is appreciating, but what’s the point if taxes remain high and operational costs don’t change. The government must intervene with meaningful tax reforms to help businesses truly feel the impact of the stronger cedi?” He questioned.
He stressed that without policy support—especially at the ports—the benefits of a stronger cedi will remain out of reach for the average importer and trader.
“The same forces that drove the cedi to depreciate are still in play. Unless those are addressed, we could see the gains eroded again. Stability must be backed by strong, supportive policies.” Aggray said.
Aggrey directly blamed past policy decisions for worsening the cedi’s decline, particularly the implementation of new levies and taxes at the ports. He recalled a meeting with former Finance Minister Ken Ofori-Atta, during which he warned against the full recovery of the benchmark value on imports.
“We told him that pushing for 100% recovery on the benchmark value would be disastrous. At the time, the cedi was about ¢11 to the dollar. He didn’t listen. New taxes were introduced, import duties shot up, and the cedi’s depreciation worsened.” He said.
Aggrey concluded with a strong call for an overhaul of Ghana’s tax regime, highlighting the burden faced by importers.
“There are nearly 21 different taxes on a single imported item. This system is suffocating businesses. What we need is a complete tax reform that reduces this burden and helps businesses regain stability.” he said.