The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, says recent macroeconomic stabilisation – particularly strengthening the cedi – was a necessary step to restore confidence in an economy that had been severely shaken by uncertainty.
Speaking on Channel One TV’s Quarterly Economic Outlook session, he noted that the economy went through a period of deep economic turmoil when both business and consumer confidence deteriorated significantly. According to him, investment decisions slowed as uncertainty over inflation, exchange rates and policy direction made it difficult for businesses to commit resources.
“We were in crisis, confidence level was so low, people investing their own resources became an issue. There was so much uncertainty in the system which required that level of stability,” he said.
Mr. Twum-Akwaboah stressed that while economic adjustment often comes with costs, the cedi’s stability was essential to reset expectations in the market. Ghana, like many import-dependent economies, is highly sensitive to exchange rate volatility – which quickly feeds into prices of fuel, food and industrial inputs. In such an environment, stabilising the currency becomes central to controlling inflation and restoring predictability.
He further explained that part of the recent improvement in market conditions has been a reduction of speculative pressure on the foreign exchange market. In previous periods of instability, expectations of continued depreciation often fuelled hoarding behaviour and widened spreads in the parallel market.
The recent relative stability, he said, has helped reduce this speculative dynamic and allowed “real market players”, importers, manufacturers and traders to operate with greater certainty.
AGI’s CEO also commended the Bank of Ghana for its calibration of monetary policy, particularly its efforts to manage inflation through interest rate adjustments. He noted that recent policy actions have helped ease lending conditions compared to the peak crisis period, although borrowing costs remain a concern for industry.
However, he noted that the next phase of recovery must focus on productive credit allocation. While acknowledging improvements in monetary stability, he expressed a preference for increased lending to the manufacturing sector in support of industrial expansion, job creation and value addition.
His remarks reflect a broader view within the private sector: that macroeconomic stability is a critical foundation, but sustainable growth will ultimately depend on whether financial conditions translate into real investment in production rather than remaining concentrated in consumption or short-term trade financing.
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