Government Cannot Mandate Price Cuts – Trade Minister

Elizabeth Ofosu-Adjare, Minister for Trade, Industry, and Agribusiness, has stated that the government lacks the authority to force traders to lower prices, even amid the recent strengthening of the Cedi and a decline in inflation.

She explained that Ghana’s liberalized market economy limits the government’s capacity to impose price controls, emphasizing that constructive dialogue with stakeholders remains the most effective approach to easing consumer burdens.

Her comments followed a private meeting with major business associations, including the Ghana Union of Traders Association (GUTA), the Association of Ghana Industries (AGI), and the Food and Beverage Association of Ghana (FABAG).

The Minister noted that some producers have already expressed readiness to lower prices in light of recent macroeconomic improvements, such as the Cedi’s appreciation and falling inflation.

“The meeting was productive. While the government cannot enforce pricing, it can engage stakeholders—traders, manufacturers, and consumers—to encourage them to capitalize on positive economic developments,” she said.

“I’m pleased to share that some direct importers have agreed to reduce their prices, with some already taking action. GUTA and AGI have acknowledged the Cedi’s stability but indicated that it may take some time for this to be reflected in retail prices. It will happen gradually,” she added.