Minister for Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, says the government cannot push traders to reduce prices despite the recent appreciation of the cedi, but insists there is room for fairness.

Speaking on The Pulse on JoyNews, the Minister explained that Ghana operates a liberal market system where the government does not fix prices. “We all know that in Ghana, we don’t control prices, and so the government cannot really push price reduction on them. But because we work together, we can always discuss and see how the stable cedi will benefit both consumers and traders,” she said.

She pointed out that traders have often increased their prices when the dollar goes up, so it is only fair for them to adjust prices now that the cedi has appreciated.
“If the dollar is this stable and has appreciated this much, I think that we need to regroup and see the way forward,” she stated.

Madam Ofosu-Adjare praised the Ghana Union of Traders Association (GUTA) for taking the initiative to engage its members on possible price reductions. “I commend GUTA for even taking the step to prevail on the traders to reduce the cost of their goods. So I think at that meeting, we will brainstorm and come to a very good conclusion which will benefit both traders and consumers,” she said.

The Minister acknowledged concerns from some traders who argue that they purchased their goods when the exchange rate was higher. However, she believes a balanced approach can be found.
“I have heard one argument which says that they bought the things already, but I think that we can discuss. They can take advantage of and buy some at this time as the dollar is slow, put it together and find the averages,” she suggested.

She added that discussions between GUTA and the various traders’ associations will help ensure that consumers also benefit from the current economic stability.
“The government has tried, the government has created an enabling environment for businesses to thrive, our cedi has become strong,” she said.

“Anytime the cedi depreciates, traders increase their prices. It is just fair, it is just conscionable that prices are reduced to reflect the measures that the government has put in place.”
According to the Minister, if traders show goodwill by reducing prices, it would motivate the government to continue implementing policies that benefit the economy.

“If the traders are magnanimous enough, it will also encourage the government to keep on doing all the right things because the government will know that once it does the right thing, every citizen will benefit. And I am sure the traders are benefiting, and they will benefit more if they really bring the prices in line with the rate of the cedi to the dollar,” she said.