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After years of persistent depreciation, the Ghanaian cedi is showing signs of strength against the U.S. dollar. As of May, 2025, the cedi is trading around GHS 13.31 to the dollar on the interbank market, slightly firmer than earlier forecasts which predicted continued weakening. This modest appreciation is having a ripple effect on businesses across Ghana, with both opportunities and challenges emerging depending on the sector.

Importers Get Some Relief

One of the clearest winners from a stronger cedi are businesses that depend on imported goods, especially electronics, machinery, pharmaceuticals, and vehicle parts. A firmer cedi means fewer Ghanaian cedis are needed to buy the same amount of dollars, lowering the cost of imports.

For example, a phone that cost $100 would now, a phone that cost $100 would now cost GHS 1,365 instead of GHS 1,700 if the exchange rate were GHS 17/USD. This reduction helps importers maintain or even lower prices, which can boost sales and improve margins—particularly in a consumer-sensitive market like Ghana.

Lower Fuel and Transport Costs

Fuel prices, which are directly tied to the dollar, also see downward pressure when the cedi strengthens. Transport companies, logistics providers, and businesses reliant on delivery services benefit from this trend, as operating costs decline. In turn, food and retail businesses experience some cost savings, potentially easing inflationary pressures across the economy.

Manufacturers Welcome Cheaper Inputs

For manufacturers who source raw materials or equipment from abroad, a stronger cedi means reduced input costs. This could improve production efficiency and profit margins, particularly for SMEs that previously struggled with high foreign exchange costs. Some may even reinvest savings into expansion, workforce development, or product innovation.

Mixed Outcomes for Exporters

However, not every business benefits. Exporters, especially in traditional sectors like cocoa, cashew, and textiles, face reduced competitiveness abroad. A stronger cedi makes Ghanaian goods more expensive in foreign markets, potentially slowing down demand.

Moreover, while exporters earn in dollars, converting those earnings to a stronger cedi yields fewer local funds. This can tighten margins, especially for businesses with significant domestic expenses.

Loan Repayments and Forex Management Ease

Businesses holding dollar-denominated loans are also better off under the current conditions. A stronger cedi reduces the cedi; equivalent value of repayments, easing financial pressure and improving debt sustainability. Financial managers can breathe a little easier, with reduced urgency around hedging and forex risk management.

What Should Businesses Be Doing Now?

For now, businesses have a window of opportunity. Here’s how many are responding:

– Importers are replenishing stock and renegotiating supplier contracts.

– Manufacturers are reinvesting the savings from cheaper imports.

– Exporters are reviewing pricing strategies to maintain competitiveness.

– Financial planners are reducing forex exposure and dollar obligations.

Conclusion

The appreciation of the Ghanaian cedi is a rare but welcome shift, bringing a measure of relief to businesses after years of volatility. While not without its challenges, it creates a more stable environment for planning, investing, and growing. The key will be sustaining this trend through sound policy, export diversification, and local production support.

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