Finance Minister Dr. Mohammed Amin Adam has criticized the Association of Ghana Industries (AGI) for obstructing government initiatives aimed at addressing the role of certain companies in the ongoing exchange rate fluctuations.
The Minister pointed out that specific companies within the industrial sector have been identified as major contributors to these volatilities, with their actions exacerbating the instability of the local currency.
During a recent engagement with the AGI, Dr. Amin Adam highlighted the need for manufacturing companies to cease practices that undermine the stability of the cedi.
He warned that the government might soon be compelled to take action against these companies to ensure the stabilization of the currency.
“While we have commendable corporate citizens, we also have those whose practices are harmful. For instance, some companies sell products, collect payments in cedi, then convert the cash to dollars and hoard it in banks, worsening our forex challenges. If we begin to crack down on this behavior, the AGI might accuse us of targeting their members,” the Minister cautioned.
He provided an example to underscore his point: “One company deposited $50 million in a bank without holding any cedi. This single action caused the Cedi to depreciate by 2 points—when the rate was at 13 cedis to the dollar, it jumped to about 15 cedis due to this deposit. These practices are damaging our currency.”
In response, AGI’s Chief Executive Officer, Seth Twum Akwaboah, expressed the association’s commitment to ethical standards, affirming that AGI would not defend any member found guilty of such activities. He assured that the association would investigate the claims and hold any culpable members accountable.
“As an association, we operate with high ethical standards, and if any member is involved in these practices, we will expose and deal with them severely. While we were unaware of these specific instances, I do not doubt the Minister’s assertions,” Akwaboah stated.
He further urged AGI members to adhere to best practices, adding, “In any community, there are always a few bad actors. Our member companies must stop engaging in such practices. If caught, AGI will not defend you—this is a firm assurance. However, we also need to understand the circumstances that led to such actions.”
The AGI also took the opportunity to outline several critical challenges that must be addressed to better support industries across the country.