Ghana Cedi Stability Halves Import Duties
Ghana's President Mahama has stated that cedi stabilisation has significantly reduced import duties, improving business predictability. The government aims for a cedi depreciation of no more than 5% annually, prioritising stability over strength. Digitalisation in customs processes is also being implemented to enhance efficiency.
President John Dramani Mahama has highlighted the financial benefits of a stable Ghanaian cedi. Speaking at the Kwahu Business Forum, he noted that the cedi's improved performance has led to a major reduction in import costs.
In 2024, importers paid the equivalent of GHS 15 or GHS 16 per US dollar for duties. Currently, the effective cost in cedi for these duties and levies has decreased. This decline makes imports cheaper, reducing the incentive for businesses to under-declare goods.
President Mahama confirmed that Ghana's foreign reserve stocks are being replenished. This action aims to prevent shortages of fuel and other essential goods.
The government's goal is a stable cedi, not necessarily a strong one. They aim for the cedi to depreciate by no more than 5% annually. This stability is crucial for businesses to plan and invest with confidence.
Digitalisation and Artificial Intelligence (AI) are being used in customs processes to improve efficiency. This system, also used in 21 other countries, is designed to reduce errors and fraud. An appeals system is in place for those who believe they have been overcharged.
While a stronger cedi benefits importers, it can affect exporters, who receive fewer cedis for their dollar earnings. The government believes a predictable and stable currency best supports overall economic growth and investor confidence.
Source: StatsGH — Ghana's data-driven news platform