Depreciation of cedi is due to Ghana's high importation rate - Kafui Amegah

Kafui Amegah, a New Patriotic Party (NPP) activist and communication team member, has attributed Ghana’s high importation rate as the leading cause of the depreciation of the cedi as against the dollar.

Kafui Amegah disclosed that most companies in the country are foreign owned companies that trade in dollars or convert their returns into dollars. This he believes contributes to the fundamentals of the cedi depreciation.

During a discussion on Happy98.9 FM’s “Epa Hoa Daben” political talk show with Don Kwabena Prah, he elaborated and urged Ghanaians to come into terms with reality.

“The fact we need to understand is that Ghana is heavily import driven. More so, there are a lot of companies here that are expatriate owned. Therefore they would prefer to convert their exchanges and returns into dollars before moving it out. We are not saying that should be the cause of the problem but that is one of the fundamental and key pillars we cannot run away from,” he said.

He couldn’t have ended his assertions without introducing the effects of the Covid-19 pandemic to the world’s economy, Ghana included.

“If you look at the international market and what is happening with the Covid-19 situation, it does not spare us as a country. All these are facts that keep hindering our developmental agenda. Today even with Russia-Ukraine war with other European and Western Countries trooping in supports, these things have had effects on the world’s economy and on Ghana as a country,” he stated.

“That is why when our President took charge, he said we should try and industrialize the country and evidently, his works have been to achieve this goal for the greater good.

"If our industry becomes the paramount way and we make sure to convert our agricultural raw products into semi-finished goods for export, we gain huge profits. Once we keep up with more exports, we should be able to gain more of the dollars in to balance our operations,” he stressed.