Cedi stability key to exporter success - FAGE President

Davies Korboe is the President of the Federation of Association of Ghanaian Exporters (FAGE). He urged the government and financial authorities to stabilize the Cedi. He believes this is crucial for exporters’ cost predictability and competitiveness.

Speaking on Metro TV’s BottomLine with Kwesi Afriyie, Korboe stressed that stability is more important than rapid appreciation. A stronger Cedi may sound good, but it can disrupt pricing structures. When the Cedi rises to GHS17 or GHS18 per dollar, it complicates planning and competition.

Korboe has advocated for Ghanaian exporters for decades. He noted that many businesses struggle due to volatile currency movements and high lending rates. He explained that loans fail not because of irresponsibility but due to unsustainable interest rates.

He proposed a dedicated lending model for agriculture, considering its unique risks and timelines. Korboe also supported calls from the Ghana Union of Traders’ Association (GUTA) for price adjustments when the Cedi appreciates.

“If the Cedi gains strength, prices should reflect that,” he said. This approach helps stabilize the market and build trust among consumers.

Korboe concluded by encouraging policymakers to leverage the African Continental Free Trade Area (AfCFTA). A well-implemented AfCFTA can attract investments, create jobs, and strengthen local production. However, it requires serious commitment from all stakeholders.

In a challenging economic climate, Korboe’s remarks highlight the need for practical reforms. These reforms should prioritize people-first solutions for long-term economic resilience in Ghana.