The Association of Ghana Industries is pressing the Ghana Revenue Authority and regulators to step up enforcement against illicit imports, warning that the cedi’s recent appreciation is fueling an influx of goods, some of which bypass official channels.
The local currency has appreciated against major trading currencies in recent times, making imports relatively cheaper
Speaking at a Special Customer Seminar on Cedi’s appreciation hosted by Prudential Bank, AGI Chief Executive Officer Seth Twum Akwaboah said while the group is not opposed to imports, regulators must ensure they are routed through legitimate entry points.
“If you go on the internet and go to the international market, you can have an idea of what the international price is. The cost breakdown of a typical production plan for flour, you can have it. Same thing applies to cables.
“The copper is sold in the international market. The plastics that is used as insulators is sold [on the international market] so you have an idea about the cost structure.
“Yet, goods are able to land in Ghana at a price that is ridiculously low that sometimes you wonder if they paid the right duties, they declared the right volumes and declared the right values. We have had these challenges.
“Therefore in a situation where there is a higher tendency to maneuver and it is affecting industries and we going to lose jobs, then the regulatory agencies have a major role to play. GRA has a major role to play,” he said.
The development comes at a time when the local currency has gained significant ground, appreciating by over 40% against the US dollar, 31% against the British pound, and 24% percent against the Euro, supported by improved macroeconomic stability, falling inflation, and strong external reserves.
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