AGI Calls For Lower Cost of Funding, Energy Stability to Sustain Cedi Gains
President of the Association of Ghana Industries (AGI), Humphrey Darke, has urged policymakers to address persistent structural bottlenecks such as high lending rates, unstable energy costs, and burdensome taxes to consolidate the gains made in stabilising the local currency and inflation.
Speaking during a panel discussion at the 14th Ghana Economic Forum (GEF) held in Accra on Wednesday, October 29, 2025, on the theme “Currency Stability – A Reset for Sustainable Economic Growth”, Mr Darke acknowledged the progress made in achieving exchange rate stability but warned that other cost pressures continue to weigh heavily on industry.
“Currently, evidently, yes, the exchange rate is performing, and inflationary rates are dropping. But the next flip side is, what is the cost of energy? Is it significant? Is it stable? When you contextualize it with your neighbouring partners in the sub-region, what comes out? Are we being competitive?” he queried.
The AGI President stressed that while macroeconomic indicators such as inflation and the exchange rate have improved, the cost of borrowing remains prohibitively high, undermining private sector growth and competitiveness.
“Granted that the exchange rate and inflationary rates are trending downwards, is this sufficient basis for you to reflect that on your pricing? The cost of funding is so significant in the equation,” he emphasised, adding that lending rates must reflect ongoing macroeconomic improvements.
Mr Darke further pointed to taxation as another key variable affecting industrial growth and competitiveness. He expressed anticipation for the upcoming 2026 Budget Statement, expected to be presented on November 13, for clarity on government’s tax strategy.
“We’re waiting patiently for November 13 to see the strategy of the Minister of Finance regarding issues of taxation,” he said.
According to him, maintaining fiscal discipline and addressing the political economy challenges identified by the Bank of Ghana Governor are critical to sustaining macroeconomic stability and boosting investor confidence as Ghana prepares to exit the International Monetary Fund (IMF) programme.
“These are the variables we’re looking out for to give further confidence. Then you could see the impact on industry with targeted interventions in selected sectors to drive productivity,” Mr Darke concluded.
Mr Darke’s remarks underscore the concerns of the business community that while the cedi’s stability is commendable, without structural reforms to lower production costs, Ghana’s industrial sector may struggle to translate macroeconomic gains into sustainable growth and competitiveness.
