Macroeconomic gains yet to fully impact businesses – GNCCI CEO 

By Juliet Aguiar DUGBARTEY, Takoradi

The Chief Executive Officer-Ghana National Chamber of Commerce and Industry (GNCCI), Mark Baidoo-Aboagye, has indicated that recent improvements in Ghana’s macroeconomic indicators are yet to translate into meaningful relief for businesses, citing structural cost pressures and time-lags in the economy.

Speaking in an interview with Business and Financial Times (B&FT), he acknowledged that key indicators including inflation, exchange rates and interest rates have shown signs of improvement in recent months.

According to him, the cedi’s strengthening is beginning to ease the cost of imports, as businesses now require fewer cedis to access foreign exchange. This development, he noted, also reduces import duties – which are calculated in cedi equivalents.

However, he stressed that benefits from these macroeconomic gains are not immediately felt within the real sector.

“There is always a lag. Inflation may be coming down and exchange rates stabilising, but it takes time for these changes to reflect in the cost of doing business,” he explained.

Mr. Baidoo-Aboagye observed that lending rates, although reduced from previous highs, remain elevated at between 20 and 25 percent – among the highest globally and a major constraint on business growth.

He further pointed out that the cost of local production remains significantly high, driven by expensive utilities, taxes and financing costs.

In some instances, he noted, imported goods are cheaper than locally produced ones despite additional costs such as freight and port duties.

“This tells you that cost of production in the country is still high. Even with improvements in inflation and exchange rates, if utility tariffs and taxes remain high, businesses will not feel the full benefit,” he said.

The GNCCI CEO therefore called for sustained policy efforts to reduce electricity and water tariffs, ease the tax burden on businesses and lower the cost of credit to enable firms translate macroeconomic gains into improved profitability.

While acknowledging that prices of some goods – including building materials – have started to decline, He emphasised that maintaining these gains over time is critical to restoring business confidence.

“If these improvements are sustained, then you will see a real impact on prices. But if they are short-lived, businesses will be reluctant to adjust,” he noted.

Mr. Baidoo-Aboagye also warned that Ghana’s economic outlook remains vulnerable to external shocks, particularly global geopolitical developments such as tensions in the Middle East – which could trigger increases in fuel prices and transport costs.

Despite these concerns, he expressed cautious optimism about the economy’s direction, commending government efforts to stabilise the macroeconomic environment while stressing the importance of consistency.

“We are seeing positive signs and we acknowledge the progress made. The key issue now is sustainability. If these gains are maintained, businesses will begin to feel the full impact,” he concluded.

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