Major Retailers Begin Price Cuts Following Cedis Appreciation

Several prominent shopping outlets and supermarkets in Ghana have initiated price reductions on select products, attributing these adjustments to the recent appreciation of the Ghana cedi against major currencies, particularly the U.S. dollar.

Orca Deco’s Strategic Price Cuts

On May 12, 2025, Orca Deco Ghana, a leading household goods and furniture retailer, announced a 15% price reduction on various items. The company cited the cedi’s improved performance as the primary reason for this decision. In a subsequent social media post, Orca Deco assured customers that further price adjustments would be considered if the cedi’s strength persists. The company emphasized its commitment to offering competitive pricing in response to favorable economic conditions.

My Home Furniture and Decor’s Significant Discounts

Similarly, My Home Furniture and Decor has substantially reduced the price of a furniture set, decreasing its cost from GH₵45,000 to GH₵29,000. The store attributes this significant discount to the favorable exchange rate, aiming to pass on the benefits of the cedi’s appreciation to consumers.

Alaha’s 10% Price Reduction

Alaha, another retailer specializing in household goods and furniture, has implemented a 10% price reduction across its product range. This move aligns with the broader trend of retailers adjusting prices in response to the cedi’s strengthened position.

Industry Associations’ Perspectives

The Food and Beverage Association of Ghana (FBA) has reported that some of its members have also reduced prices by approximately 7%. General Secretary Samuel Aggrey noted that if the cedi’s positive trend continues, more businesses are likely to follow suit.

However, the Association of Ghana Industries (AGI) and the Ghana Union of Traders Association (GUTA) have expressed caution. Following an emergency meeting with the Minister of Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, both associations indicated that more time is needed for traders to adjust prices. AGI highlighted that many members had procured goods at higher exchange rates and require time to recoup costs before implementing price reductions.

Cedi’s Performance in the Currency Market

The Ghana cedi has shown significant improvement in the currency market. Over the past week, the cedi appreciated by 6.25% against the U.S. dollar in the retail market, bringing its year-to-date gain to 16.29%. At the close of the trading week, the cedi was valued at GH₵13.60 to one U.S. dollar in the retail market and GH₵12.89 in the interbank market. Additionally, the cedi gained 7.61% against the British pound and 5.81% against the euro. This positive trend is attributed to strong market supply, with an aggregate market supply of US$378.6 million.

S&P Global Ratings’ Upgrade and Economic Outlook

The positive movement of the cedi has been further supported by a recent upgrade from S&P Global Ratings. The agency raised Ghana’s long- and short-term foreign currency sovereign credit ratings to ‘CCC+/C’ from ‘Selective Default’. The upgrade reflects Ghana’s economic growth, ongoing fiscal reforms, and improved external position against high debt service costs. Analysts view this as a positive development that could support the cedi’s stability in the near term.

Conclusion

The recent appreciation of the Ghana cedi has prompted several retailers to adjust their pricing strategies, benefiting consumers with reduced prices on various products. While some businesses have already implemented price cuts, others are awaiting further stability in the currency market before making adjustments. The overall trend indicates a positive response to the cedi’s strengthened position, with expectations of continued benefits for consumers if the favorable economic conditions persist.