New Patriotic Party (NPP) Finance and Economy Committee spokesperson, Dr Frank Bannor, has raised concerns that the government’s exchange-rate policies could make it more difficult for local manufacturers to compete with imported goods.
Dr Bannor said efforts to maintain cedi stability and make foreign currency more accessible could lower the local-currency cost of imported products at a time the government is also seeking to encourage domestic production through its import-substitution agenda.
Finance Minister Dr Cassiel Ato Forson has said the government’s import-substitution strategy under the 24-Hour Economy is aimed at increasing the production of goods currently imported, reducing the import bill and easing demand for foreign exchange.
The 2025 Budget also identified Bank of Ghana foreign-exchange interventions and FX forward auctions among measures to support exchange-rate stability.
However, Dr Bannor argued that the two policy objectives could create conflicting incentives for local producers if cheaper imports gain a competitive advantage in the domestic market.
“You are facilitating the taste for imported products and yet, you say you want to increase local production of products. For who to buy when imported substitutes are cheaper?” he asked.
He said the issue was particularly important for domestic manufacturers that already face high production costs and must compete with imported alternatives whose prices could fall when the cedi strengthens.
Dr Bannor therefore called for greater clarity on how the government intends to align exchange-rate management with its industrialisation and import-substitution objectives.
The Finance Minister has, however, presented cedi stability as part of a broader economic strategy aimed at reducing inflation, stabilising the economy and creating conditions for increased domestic production.
Government’s position is also that expanding local production would eventually reduce the country’s demand for foreign exchange by replacing imported goods with locally manufactured alternatives.
For Dr Bannor, the effectiveness of the import-substitution agenda will depend on how these policies interact and whether local producers can remain competitive against imported goods.
“What sort of economics are we practising in Ghana now?” he asked, urging the Finance Minister to explain how the government intends to expand domestic production while pursuing policies that could make imported alternatives more affordable.
