Ghana’s export sector may be about to catch a favorable wind. New data shows producer price inflation slowed significantly in July, dropping to 18.6 percent from 24.2 percent the previous month.
This easing cost pressure could make key exports like gold, processed cocoa, and aluminum more competitive abroad.
The decline was led by cooling costs in mining and manufacturing, which together account for the vast majority of the country’s exports. With input prices rising more slowly, producers might soon be able to offer their goods at more attractive prices, just as Ghana works to expand its trade under the African Continental Free Trade Area.
This trend aligns with other positive economic signals, including a steadier currency and falling consumer inflation. For exporters, it could be the nudge needed to scale up production and attract new investment into local processing.
There is a catch, though. Utility costs remain stubbornly high, which may limit gains for energy-heavy industries like steel and cement. Still, for many, the slowing producer inflation offers a tangible boost—and a chance to strengthen Ghana’s position as a growing export hub for a continent-sized market.
Source: newsghana.com.gh
