Daniel Kwadwo Owusu, the Country Managing Partner of Deloitte Ghana, has some important advice for the government. He wants them to reassure business leaders that the recent rise in the value of the cedi (Ghana's currency) is here to stay and not just a temporary change.
Many businesses are feeling a bit nervous about what might happen next with the cedi. Mr. Owusu pointed out that there are other problems too, like high utility bills, expensive transportation, and the overall cost of running a business. He shared these thoughts during the 9th Ghana CEO Summit and Expo.
Mr. Owusu talked about the need for the government to focus on long-term solutions instead of quick fixes that won’t last. He believes that while having a strong currency is good, it doesn’t automatically mean that prices will go down if we don’t deal with other issues like transportation and energy costs.
He also mentioned that Ghana’s economy relies too much on gold and cocoa. To make it stronger, he suggested that we should diversify, which means finding new ways to earn money and not just depending on a few things. This way, our economy won’t be as affected by big changes in global prices.
Mr. Owusu reminded everyone about what happened in 2017 after Ghana got help from the International Monetary Fund (IMF). Back then, the cedi got stronger for a while, and inflation (which is when prices go up) dropped to about 11.8%. However, just like now, prices for everyday things didn’t go down much because there were still bigger problems in the economy that needed fixing.
He also encouraged businesses to pay attention to the changes happening in the economy. Mr. Owusu expressed concern about some companies using different exchange rates for foreign money compared to what the Bank of Ghana offers. He believes that this isn’t the right way to move forward.
“I’m talking to CEOs because we can’t have a real economic reset unless we all change together,” he said.