According to the Association of Ghana Industries (AGI), certain industries in the nation were in danger of closing down because of sustainability issues.
Ashok Mohinani, the vice president of AGI in charge of large manufacturing, claims that a dramatic spike in business input costs has had disastrous effects on nearby manufacturing companies.
He urged the government to engage in discussions on the depreciation of the cedi with the business community and offer workable ideas to reverse the trend.
Speaking at a press conference in Accra on October 1, 2022, Mr Mohinani said, “At the moment, there is quite lot of speculations and the biggest issue is the currency and we are nearly hitting ¢15. I think more communication will be very helpful.”
“Most inputs cost have gone up and the factories are facing issues of sustainability on whether they can survive. But if the government and others will communicate, I think that will calm nerves,” he stated.
Forex bureaus, as of Monday, October 24, 2022, are selling $1 at GH¢15.65 whiles the Bank of Ghana’s rate is GH¢12.53.
Meanwhile, Ghana is targeting an amount of $3 billion over a three-year period from the IMF once an agreement on a programme is reached.
The new amount requested as a loan is double the government’s initial target of $1.5 billion.
The IMF programme is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.