The government says it is considering sourcing raw materials locally as part of efforts to stabilise sachet water prices and protect consumers from rising production costs.

The Chief Commercial Officer and Director of Industrial Development at the Ministry of Trade and Industry, Kofi Addo, made this known during an interview on JoyNews’ AM Show on Monday, April 6.

He explained that the government moved quickly to engage manufacturers and producers after receiving indications of an impending price increase in the sector.

“You will recall, last week, we had the message that this increment was coming on board,” he said. “And as a ministry, for the protection of our consumers and to ensure price stability in the environment, we quickly started the engagement with the manufacturers and producers.”

Mr Addo said the immediate priority is to stabilise the market and protect consumers, while ensuring that all stakeholders along the value chain are involved in finding a solution.

“So all that we did is to make sure that we bring stability and to protect our consumers,” he added.

He disclosed that a key meeting scheduled for Wednesday will bring together manufacturers and producers to address the challenges driving the price increases, particularly rising production costs.

“What we are doing is that we are having this meeting to understand the issues that led to the increment,” he said. “We also want to make sure that all the other players are brought on board so that when we come out with the solution, everybody will be happy along the value chain.”

On the urgency of the engagement, he added: “On Wednesday, we are bringing the manufacturers and the producers to make sure that these issues are resolved with the speed of light.”

Addressing concerns over reliance on imported raw materials, particularly polymers used in production, Mr Addo said the government is actively exploring local alternatives.

“As a ministry, we are very concerned about feeding the industry with available raw materials. In fact, that has been our mandate since the government took over,” he said.

“So what we are doing right now is speaking to other stakeholders in the value chain to see if we can have locally available polymers, which are the main ingredients in sachet production.”

He added that discussions are ongoing to determine the feasibility of local sourcing to reduce exposure to global price fluctuations.

On policy reforms, Mr. Addo noted that the government is working on key documents aimed at strengthening competition and improving pricing structures for essential goods.

“As we are speaking right now, the ministry is working on these two important documents to make sure that they are completed on time to support the issues you have raised,” he said.

He also cited external economic pressures, including disruptions to global supply routes, as contributing factors to recent price movements.

“The economic environment is also good apart from this war and the closure of the Straits of Hormuz, which is not allowing people to get their imports. That is why this price increment came about,” he said.

Mr Addo added that the government is pursuing both local and external sourcing options to ensure competitive pricing for producers.

“If we are not able to get these raw materials locally, we will get them so that we will be able to have a competitive import price to support our producers,” he said.

He also confirmed that the government would engage the Bank of Ghana over concerns about the rejection of lower denomination coins, such as 10 and 20 pesewa coins, by some traders.

He added that similar engagements in the past had yielded positive outcomes, citing discussions on the repatriation of export proceeds between the government and the central bank.