Trade Minister Elizabeth Ofosu-Adjare has urged the Ghana Union of Traders’ Associations (GUTA) to reflect recent currency gains in retail prices, warning that failure to do so could erode consumer confidence and undermine market credibility.
At a meeting with GUTA leadership, the minister addressed concerns over pricing behavior, market regulation, and the persistent problem of foreign fronting against the backdrop of the cedi’s performance in recent months.
Ofosu-Adjare said price adjustments must move in tandem with currency movements, stressing that consistency is critical to maintaining public trust. She emphasized that if the dollar drives prices up, then the same dollar must drive prices down, adding that consistency is important if consumers are to respect the market.
She described foreign fronting, where non-Ghanaians allegedly operate businesses reserved for locals, as fraudulent misrepresentation and a criminal offence under Ghanaian law. The minister called for closer collaboration between traders and regulators to identify and curb the practice.
GUTA executives acknowledged the pricing challenges, pointing to supply constraints, monopolistic control over certain spare parts, and strong global demand as factors limiting immediate price reductions. They nevertheless assured the government of their willingness to cooperate and improve transparency.
The meeting comes as the cedi trades at approximately 10.96 cedis to the United States dollar in early February 2026, following significant appreciation during 2025. The cedi gained approximately 40.7 percent against the dollar throughout 2025 before experiencing modest depreciation of about 4 percent in January 2026.
The issue of foreign fronting has become a major concern in Ghana’s retail sector. Recent data from GUTA indicates that foreign nationals now control an estimated 60 to 70 percent of local commerce, threatening indigenous businesses despite legal prohibitions under the Ghana Investment Promotion Centre (GIPC) Act.
The practice allows foreign merchants to operate in sectors legally reserved for Ghanaians by partnering with locals who provide business registrations while foreigners run the actual operations. Markets like Abossey Okai and other major retail hubs have witnessed significant demographic shifts as foreign merchants establish dominant positions.
The minister welcomed ongoing initiatives to enhance market oversight, including the rollout of digital pricing and monitoring tools, and said her ministry remained open to regular engagement with traders to address emerging concerns.
Concluding a series of meetings with business stakeholders, Ofosu-Adjare reiterated her open-door policy and pledged swift action on industry issues. She said her job is to help industry, and if industry thrives, the economy thrives. She added that government would continue working with the private sector to build a more resilient, competitive, and inclusive economy.
