Relief in Sight: Prices Dip as Cedi Strengthens Under Mahama’s Leadership

Four months into President John Mahama’s administration, Ghanaians are beginning to feel a tangible difference in their pockets as prices of essential goods are showing a welcome downward trend. This positive shift is being attributed to the implementation of new economic policies that are bolstering the strength of the Ghanaian Cedi against the US dollar.

Today, May 13th, 2025, marks a significant milestone as the Cedi has gained 19 pesewas, closing at 12.73 to the dollar, a marked improvement from yesterday’s exchange rate of 12.92. This strengthening of the national currency is directly impacting the cost of imported goods, which traditionally contribute significantly to the inflation rate in Ghana.

The effects are being felt most keenly in the prices of essential food items. For example, a 50kg bag of sugar, previously costing a steep Ghc900, now retails for a more manageable Ghc700.

Similarly, a 50kg bag of rice, a staple food for many Ghanaian families, has seen a reduction from Ghc950 to Ghc800. These price reductions, while still significant expenses for many households, represent a much-needed reprieve from the inflationary pressures experienced in recent years.

The Mahama administration has emphasised its commitment to stabilising the economy and fostering a more sustainable financial environment.

While the details of these specific policies remain to be seen in their long-term impact, the initial results are undeniably encouraging. The government’s focus appears to be on attracting foreign investment, streamlining import processes, and supporting local industries to reduce reliance on foreign goods.

“We understand the burden that high prices have placed on Ghanaian families,” President Mahama stated in a recent address. “Our commitment is to creating an economy that works for all Ghanaians, not just a select few. The strengthening of the Cedi is a critical step in achieving this goal, and we are dedicated to continuing on this path of fiscal responsibility and sustainable growth.”

While the immediate effects are being celebrated by many, economists caution against premature celebration. They emphasise the importance of monitoring the long-term sustainability of these economic policies and ensuring that the benefits extend beyond short-term price reductions. Factors such as global economic trends, oil prices, and agricultural output will all play a role in determining the overall success of the administration’s economic strategy.

Furthermore, it is crucial to address underlying issues such as infrastructure development, job creation, and access to affordable financing to ensure that the positive impact on prices translates into genuine and lasting economic prosperity for all Ghanaians.

Despite these cautionary notes, the current trend offers a glimmer of hope for Ghanaians grappling with the rising cost of living. The initial signs of a strengthened Cedi and corresponding price reductions suggest that the Mahama administration’s economic policies are beginning to bear fruit.

And as the nation navigates the complexities of the global economy, the focus remains on building a resilient and equitable economy that benefits all citizens.

For now, the feeling on the ground is one of cautious optimism, with many believing that Ghana is finally moving in the right direction under the leadership of President John Mahama. Some are even proclaiming that Ghanaians made the right choice in electing him.

Anthony Obeng Afrane