By Savannah Pokuaah Duah
Head of the Business and Economic Bureau at the Ghana Union of Traders Associations (GUTA), Charles Kusi Appiah Kubi, says that beyond the impact of the US dollar, local factors like high borrowing costs, utility expenses, and inadequate infrastructure are significantly contributing to price hikes in Ghana.
Mr. Appiah Kubi shared these insights during an interview on GTV’s Breakfast Show, focusing on the reality of Ghana’s price increases, on Monday, April 14, 2025.
He explained how currency devaluation increases business costs. “When your city has lost its value, it means you need more to meet up with the demands. That is a cost, assuming you are using 100,000 as your working capital and your city has devalued, and you need to buy some other things. Either you have to find an equity borrowing, or you have to use debt financing, which of course comes with an extra cost,” Mr. Kubi said.
Mr. Appiah Kubi further emphasized the impact of infrastructure deficits, particularly on agricultural produce. “You see, apart from the challenges that we’ve mentioned, most of these plants or produce are in the hinterlands, where accessibility is very difficult,” he explained. “If someone tries to break their barriers and get to have access to it, the factor that costs in the pricing. Two, fuel is also a factor. When your road is not so good, it’s a factor.”
Mr. Kubi then advocated for improved infrastructure, especially transportation networks.
“If you are looking at a system that will ensure price stability, that will be very competitive in Africa, we should be looking at a road system,” he argued. “Can you imagine if we had had a railway from Thema to Kumasi that would have carried out our containers to Kumasi? Cost of transportation would be reduced. Efficiency would be improved. Until that is done, some of these challenges will be staring at our faces.”
