Odike Urges Bank of Ghana to Cap Cedi’s Rise — Lists 4 Reasons Why Ghana Doesn’t Need a Strong Currency

/ The United Progressive Party founder says the cedi's sharp appreciation poses risks to foreign investment, local manufacturing, and Ghana’s industrial ambitions.

੦ Odike Raises Concerns: A strong cedi could repel foreign investors due to rising operational costs.

੦ Impact on Local Industry: Exporters and manufacturers may suffer as the dollar loses value in local transactions.

੦ Call for Action: Odike urges the Bank of Ghana to cap the cedi to protect Ghana's long-term industrial goals.

Odike lists 4 key reasons Ghana should curb the cedi’s rise, warning it may harm exports
and local industry growth.

Ghanaian businessman and politician Akwasi Addai Odike has voiced serious concerns about the Ghanaian cedi’s recent surge in value against the US dollar. In an interview on the Yen Nsempa Show aired on Onua FM, and captured in a video on TikTok by @onuaonline, Odike outlined what he believes are the hidden dangers of an overly strong cedi.

Speaking with host Nana Yaa Brefo, the founder of the United Progressive Party warned that while the cedi's appreciation might seem like economic progress on the surface, it could discourage foreign direct investment (FDI). 

“If you make the cedi too strong, it drives away FDI,” Odike said. 

“For instance, if GH₵1 equals $1, and someone earns GH₵4,000 monthly, that becomes $4,000 — who will want to pay that in Ghana? Cheap labor is what attracts investors.”

He explained that rising operational costs linked to a stronger currency make Ghana less appealing for foreign companies aiming to establish manufacturing or service centers. Furthermore, Odike warned that local exporters may be impacted, especially those supplying goods to neighboring countries such as Nigeria.

“A trader from Nigeria who comes to Ghana to buy goods using the dollar will no longer be able to purchase as much due to the cedi’s strength,” he noted. 

“This weakens Ghanaian manufacturers and puts them at risk of losing international customers.”

Odike pointed to China as a model, noting that the Asian giant intentionally maintained a weaker Yuan to attract global buyers and boost industrial output.

READ ALSO: GH¢1 to $1? Not So Fast! — Mahama Warns It Could Crash Ghana’s Export Sector

“China devalued their currency to industrialize. With more dollars, you can buy more of their currency and products. Ghana is reversing that logic,” he said.

The seasoned entrepreneur ended with a strong message to the Bank of Ghana and its governor, Dr. Johnson Asiama, urging them to take immediate action to prevent the cedi from becoming too powerful. 

“There are at least seven negative impacts of a strong cedi,” he warned. “If Ghana truly wants to industrialize rapidly, the central bank must intervene. I am appealing to the Bank of Ghana to cap the cedi’s appreciation.”

His comments come at a time when the cedi has appreciated by over 24% in recent months, raising optimism in some sectors — but now facing scrutiny for its possible economic consequences.

@onuaonline

The Bank of Ghana governor should cap the cedi appreciation, and too much appreciation will not be good for us as a country. - Akwesi Addai Odike #OnuaFM #YɛnNsɛmpa

♬ original sound - onuaonline

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