Government cannot force price cuts but traders should be fair – Trade Minister

Minister for Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, says the government cannot force traders to reduce their prices even though the cedi has recently gained strength against the dollar. However, she believes traders can still be fair and considerate to consumers.

Speaking on The Pulse on JoyNews, the Minister explained that Ghana uses a free market system, where the government doesn’t set the prices of goods.

“We all know that in Ghana, we don’t control prices, and so the government cannot really push price reduction on them. But because we work together, we can always discuss and see how the stable cedi will benefit both consumers and traders,” she said.

She added that since many traders raised prices when the dollar went up, it’s only right to reduce prices now that the cedi is performing better.

“If the dollar is this stable and has appreciated this much, I think that we need to regroup and see the way forward,” she stated.

Madam Ofosu-Adjare praised the Ghana Union of Traders Association (GUTA) for talking to its members about lowering prices.

“I commend GUTA for even taking the step to prevail on the traders to reduce the cost of their goods. So I think at that meeting, we will brainstorm and come to a very good conclusion which will benefit both traders and consumers,” she said.

Some traders have complained that they bought their stock when the dollar rate was high. The Minister acknowledged this concern but said a middle ground can be found.

“I have heard one argument which says that they bought the things already, but I think that we can discuss. They can take advantage of and buy some at this time as the dollar is slow, put it together and find the averages,” she suggested.

She said current talks between GUTA and traders’ groups can help pass the benefits of a stronger cedi on to the public.

“The government has tried, the government has created an enabling environment for businesses to thrive, our cedi has become strong,” she said. “Anytime the cedi depreciates, traders increase their prices. It is just fair, it is just conscionable that prices are reduced to reflect the measures that the government has put in place.”

The Minister concluded that if traders show goodwill, the government will also be more motivated to continue helping businesses and the economy grow.

“If the traders are magnanimous enough, it will also encourage the government to keep on doing all the right things because the government will know that once it does the right thing, every citizen will benefit. And I am sure the traders are benefiting, and they will benefit more if they really bring the prices in line with the rate of the cedi to the dollar,” she said.