19/08/2025
Government Policies, Currency Shifts, and Their Impact on Businesses in Ghana
We were all happy when the Ghana cedi started appreciating against major currencies like the US dollar and the British pound. But little did we know the impact on businesses would become a huge blow across industries in the country.
From my discussions with fellow entrepreneurs in various sectors, one sad reality stands out: prices of materials have dropped drastically, in some cases by 40–50%. What may seem like good news on the surface has turned into a nightmare for many of us trying to build sustainable businesses.
Let me share the reality from my sector — the plastic (PET) bottles processing and recycling industry in Ghana.
From mid-2024, we began seeing real growth. More buyers, both local and international, were actively purchasing materials from us processors and recyclers. Prices grew steadily, rising by about 60–100% into July 2025. For the first time, we had over 200 suppliers delivering materials monthly, reducing our workload of sourcing while keeping the factory running efficiently.
Just as we had planned for growth in 2025, the storm of the cedi’s sharp appreciation against the dollar hit. The impact was devastating:
• Material prices collapsed from GHC 5,500–6,000 per ton down to GHC 2,500–3,500 per ton depending on location. In Kumasi, it’s now as low as GHC 2,300 per ton.
• That is a ~58% loss (from GHC 5,500 → GHC 2,300).
• Buyers exited the market — both local and international players — as their funds lost value due to the currency shock.
• One customer I know personally lost over GHC 35,000 in a single day while loading her container for export to Europe.
• Suppliers stopped bringing materials because prices dropped from GHC 4.00 per kilo to GHC 1.50–2.00 per kilo, forcing many collectors out of the system. Our supply base shrank from over 200 suppliers a month to less than 70.
For us in Kumasi, the story is even more painful. Between June and August 2025 alone, I lost over GHC 130,000–150,000.
We had already purchased raw materials at GHC 4,000 per ton, only to be forced to sell baled materials at GHC 2,300. (Over 40% loss) on every ton.
Our Accra Customer have even asked us to “move on for now” due to the unsustainable pricing.
So, are we going to stop this work because of the debts this business has brought to us or continue pushing forward in the sector despite the storm?
This is the question I am faced with, and it is one I’ll address in the continuation of my story, where I’ll share our next plans to survive and adapt.
Edmund Arthur Brown