BoG Ceases Foreign Exchange Support For Importation Of Some Products

The Bank of Ghana has said it will no longer provide foreign exchange support for the importation of some products that are manufactured in the country from November 17, 2022.

Such products include rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles.

The President gave a hint of this during his recent address on the economy in October while outlining measures carved out to deal with the country’s economic struggles and actualising a Ghana Beyond Aid.

“To this end, we will review the standards required for imports into the country, prioritise the imports, as well as review the management of our foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles, and others which, with intensified government support and that of the banking sector, can be manufactured and produced in sufficient quantities in Ghana.”

He noted that the decision was critical for urgent national security and will be reviewed in 2023 after it is enrolled.

A message from the BoG announced the measure has been set out.

“In accordance with the President’s directive issued at his recent address to the nation on the Ghanaian economy, on Sunday 30th October 2022, the Bank of Ghana will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods”.

According to President Akufo-Addo, the new policy is meant to support Ghanaian farmers and domestic industries “to help reduce our dependence on imports, and allow us the opportunity to export more and more of our products, and guarantee a stable currency that will present a high level of predictability for citizens and the business community. Exports, not imports, must be our mantra! Accra, after all, hosts the headquarters of the Secretariat of the African Continental Free Trade Area.”

A survey by Ghana’s Food and Drugs Authority (FDA) in October revealed that only 21% of Made-In Ghana products are shelved in supermarkets in Ghana whereas 79% are imported products.

The survey also found that consumers would like to buy made-in-Ghana products even if there is a foreign substitute.

Source: opemsuo.com/Hajara Fuseini