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Ghana’s economy, has shown remarkable improvement in recent times. The cedi, which not long ago traded at nearly GH¢17 to the dollar, now hovers around GH¢11. Inflation has dropped from a staggering 23.8 percent by the end of 2024 to single digits at about 8 percent. Prices of petroleum products, have also trended downward. By every indication, the economy is not only recovering, it is stabilising.
Basic economic principles suggest that when such fundamentals improve, prices of goods and services should naturally fall. Yet in Ghana, businesses tend to respond only when costs are rising. When the fundamentals improve, many remain reluctant to adjust prices downward.
This situation is evident in the pricing of essential goods like sachet and bottled water, which have seen no reduction, in some cases, prices have rather increased, with Ghanaians having to pay more to quench their thirst.
Price of a bag of maize for instance, has reduced by more than half, and yet the price of a ball of kenkey or banku, still remains the same. We are only cutting our nose to spite our face, because no one is safe.
According to the Greater Accra Poultry Farmers Association CEO, Ali Mohammed, market women are refusing to reduce prices of eggs, despite lower farm-gate prices. The situation has even been made worse by hawkers who sell one egg for GH¢4.
Though Ghana operates a free-market economy, where government cannot dictate prices, it is only fair to expect that businesses, which felt the need to raise prices in response to the rising cost of raw materials because of inflationary and exchange rate pressurse, will also reduce them when those pressures ease.
Being responsible economic actors means recognising that while profit is vital for business survival, it should not come at the avoidable expense of consumers. The welfare of others must matter, especially when they have borne the plight of economic mismanagement.
This newspaper commends the traders, who have already responded to the improved economic conditions by lowering their prices. We urge others who remain hesitant to reconsider. Doing so will not only reflect fairness, but will also help ease the burden on ordinary Ghanaians.
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