President of the Association of Ghana Industries (AGI), Dr Kofi Nsiah-Poku, says the recent appreciation of the cedi is not enough to trigger immediate price reductions, as manufacturers are still recovering from heavy losses incurred during the period of a weak currency.

Speaking on Joy News’ PM Express Business Edition on Thursday, he explained that when the dollar surged, many manufacturers absorbed significant losses.

“At the time that the dollar was very high, I was making losses. Now that the dollar price is low, I have to recover the loss,” he said.

He stressed that the stronger cedi is only one factor in pricing decisions. “Some of the reasons why prices are not dropping as expected, even though the dollar has become very steep, is one of the reasons, but not the only reason,” he noted.

Dr Nsiah-Poku pointed to uncertainty about the durability of the cedi’s gains. According to him, industry players are not yet convinced that the economy is strong enough to sustain the currency’s current position.

“Industry still does not think that the economy is so robust,” he said.

He explained that Ghana operates largely as a credit economy, which complicates pricing decisions. Manufacturers often supply goods on credit and receive payment months later.

“This is a credit economy. If I manufacture and give it to my customers on credit, and they pay me in two, three, or four months, and by that time, if the gain has reversed, what do I do?” he asked.

That risk, he said, makes manufacturers cautious about reducing prices too quickly.

“So we are very careful in trying to reduce the prices,” he added.

Beyond exchange rate movements, Dr Nsiah-Poku also raised concerns about high utility costs, which continue to weigh heavily on production.

“The cost of utilities is even high, even when the dollar is going down,” he said.

He argued that utility tariffs should reflect the stronger cedi, especially when costs are linked to foreign-exchange inputs.

“If the dollar is going down, we expect that utility cost should also be down, because we now have a higher cost, which is balancing the gain in the exchange rate,” he stated.

His comments highlight the delicate balance manufacturers face as they navigate currency volatility, credit risk, and rising operational costs.

While the cedi’s performance may signal macroeconomic improvement, Dr Nsiah-Poku’s assessment suggests that for industry, the recovery process is still underway.

For now, he insists, stability and sustainability matter more than short-term currency gains.