Mark Badu-Aboagye warns of rising inflation for locally manufactured goods

Mark Badu-Aboagye, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), has cautioned that inflation for locally manufactured goods is on the rise despite a generally improved business environment. While describing the 2026 budget as "business-friendly," Badu-Aboagye noted that domestic producers are still grappling with high production costs that continue to push prices upward. He emphasized that although the national average inflation rate is currently 5.5%, this figure does not fully reflect the specific pressures faced by the manufacturing sector.

The GNCCI head highlighted several positive economic indicators, including falling interest rates, a stable exchange rate, and various tax relief measures. These factors have significantly reduced borrowing costs and provided a more predictable environment for businesses compared to previous years. However, Badu-Aboagye pointed out that these improvements have yet to fully mitigate the high costs of production for many local firms. He warned that the business sector is "not out of the woods yet," as the disconnect between overall price stability and local manufacturing costs persists.

In addition to sector-specific concerns, the Chamber identified significant regional variations in inflation. Badu-Aboagye stated that several regions are experiencing price hikes that exceed the national average of 5.5%. He observed that while many businesses have attempted to restrain their pricing strategies to support single-digit inflation, the underlying costs in certain areas make such moderation difficult to sustain. This regional disparity suggests that national statistics may be masking more acute economic challenges in specific parts of the country.

To address these lingering challenges, the GNCCI is calling for further government intervention, specifically through additional tariff relief. Badu-Aboagye argued that while current tax measures have been helpful, more direct action on tariffs is necessary to significantly lower production costs and bring down inflation for locally made products. By easing these financial burdens, the Chamber believes the government can ensure that the manufacturing sector remains competitive and that the benefits of the current fiscal policy are felt more broadly across the economy.