The improved performance of the cedi should lead to more support for local production in Ghana, according to Dr. George Gyamfi, who featured on Peace FM’s morning broadcast on May 26, 2025.
He said, jubilating over the recent Cedi gain would be pointless unless the local manufacturing industry was strengthened. He used China as an example as one of the few countries that, because of the support of its domestic industry, has gone from being among the world’s poorest in the 1980s to becoming one of the most envied nations today.
Dr. Gyamfi went on to say that, in order to boost their GDP, the Chinese had to establish huge manufacturing companies in all of their towns, especially in the countryside.
“As one of the developed economies in the world today, China is fiercely competing with the U.S.” he stated.
Nonetheless, encouraging domestic manufacturing in the face of exchange rate volatility is a common subject in Ghana’s economic discussions. Development economist Dr. Frank Bannor, for example, has previously underlined the significance of assisting local firms in order to reduce the effects of currency devaluation and global economic issues. He emphasized how historically, local manufacturing costs have been impacted by rising freight costs and a reliance on imported supplies, which has led to inflation.
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If the cedi is doing well right now, Ghana has a chance to support domestic manufacturing. By lowering the cost of importing necessary manufacturing inputs, a stronger cedi can increase the competitiveness of domestic goods.
Encouraging local production can lead to job creation, reduce dependency on imports, and strengthen the economy against future external shocks.
