Cedi depreciation badly affecting steel industry - Businessman bemoans
Business Development Manager at B5 Plus Limited, Sandeep Sawlani
The local currency - Cedi - has in the past week witnessed a decline in value against major trading currencies, Pounds Sterling, US Dollars and Euros.
Read full articleDepreciation of the Cedi, Business Development Manager at B5 Plus Limited, Sandeep Sawlani, has said is having dire consequences on businesses of which the steel industry is of no exception.
He explained that the steel sector imports most of its raw materials for production, and the free fall of the Cedi amount to an increase in the purchase of these materials.
Speaking to Citi News on the sidelines of Ghana Corporate Brands Awards held in Accra on Friday, August 5, 2022, Mr Sawlani noted that the prices of scraps have also shot up by 50% due to the Cedi depreciation and ongoing Russia-Ukraine war.
According to him, the increase in scraps can be attributed to the sourcing of raw materials from Ukraine.
“The Cedi depreciation is affecting us a lot because we import most of the items and we cannot change the price everyday…I think government has to fix the Cedi rate somewhere along the line because this is something very key to any business; not only the steel industry,” he said.
“It’s more than 50% because everything you are buying, even if it’s scrap, raw materials, everything is going up so it is affecting directly or indirectly. Scrap prices have gone up more than 50% so you have to increase your prices and the buyers don’t accept price changes easily,” he stated.
Meanwhile, the Cedi is selling at GH¢9.10pesewas and buying at GH¢8.85pesewas at various forex bureaus in the country.
The British Pounds is selling at GH¢10.90 pesewas and buying at GH¢10.60
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