The Association of Ghana Industries (AGI) has raised concerns over a significant decline in sales and consumer demand, despite signs of broader economic recovery and a marked slowdown in inflation compared to last year.
Speaking on PM Express Business Edition, AGI President Dr. Humphrey Ayim-Darke disclosed that member companies have reported a substantial drop in the consumption of locally manufactured goods since the beginning of 2025.
This unexpected trend, he noted, is largely due to continued liquidity challenges within the economy, which are dampening the purchasing power of both consumers and businesses.
“We are asking for the stimulation of the economy. There are some cheap products coming in due to cheap cost of import affecting productivity. There’s a clear disconnect between macroeconomic indicators and what’s happening on the ground. Inflation has slowed, yes, and there are signs of recovery, but liquidity is tight”, Dr. Ayim-Darke said.
The development is particularly troubling for local industries that had hoped for a rebound in demand following a turbulent 2024 marked by high inflation, currency depreciation, and sluggish growth.
With inflation now significantly lower and the Ghanaian cedi showing relative stability, industry leaders had anticipated a stronger uptick in domestic consumption.
However, Dr. Ayim-Darke explained that access to credit remains limited, and cash flow within the private sector is still constrained.
The AGI is calling on government and financial institutions to take steps to ease liquidity pressures through targeted interventions, including improved access to credit, prompt payments for public sector contracts, and support packages for struggling industries.
While reforms have brought some stability to the economy, the AGI’s concerns highlight a gap between macroeconomic improvements and their real-life impact on businesses and households.
The AGI is urging a more inclusive economic recovery strategy that considers the operational realities facing local industries, especially small and medium-scale enterprises (SMEs), which form the backbone of Ghana’s manufacturing sector.