Cedi Gains Offer Little Relief Without Inflation Tamed, Says Blue Skies Founder-Ghana

Anthony Pile, founder of leading fruit exporter Blue Skies Company Ltd., has raised concerns that Ghana’s recent cedi appreciation, while welcome, could be undermined by persistent inflation and sluggish economic growth. Speaking on the current economic climate, Pile acknowledged the government’s successful efforts in stabilizing the currency but warned that without broader reforms, exporters may continue to suffer from high operating costs.

Pile highlighted the difficult position exporters face, pointing out that while importers benefit from the cedi’s current strength, exporters lose out when earnings in foreign currency are converted at less favorable rates. “It’s hard to absorb 18% inflation on inputs while receiving fewer cedis in return,” he explained, emphasizing the growing strain on businesses like his.

He also noted the temporary nature of gains tied solely to exchange rate movements, saying that relying purely on currency fluctuations is not a viable strategy for long-term business survival. The recent dip in inflation from 21% to 18% offers slight relief, but remains dangerously high, limiting the potential benefits of a stronger currency.

Pile argued that real economic recovery requires more than currency gains. He stressed the need for policies that simultaneously target inflation control and economic growth. “If we can bring it all down and keep the economy growing, then both importers and exporters can win,” he said.

Despite these concerns, Pile remains cautiously optimistic. He agrees with President Mahama’s suggestion that a stable cedi-to-dollar exchange rate between GH¢10 and GH¢12 is ideal. For lasting success, he believes Ghana must focus on achieving three goals: a strong and stable currency, low inflation, and a productive, growing economy.

Source: Citi newsroom