By Mercy Darko
Vice President Mahamudu Bawumia has assured industry players of government’s resolve to address current economic challenges in the country especially the hike in fuel prices and the depreciation of the Cedi.
Addressing the 11th Annual Association of Ghana Industries, AGI Awards night in Accra, Vice President Bawumia outlined some steps the government is taking to bring relief to the business Community.
These initiatives include the use of gold reserves to purchase oil rather than using the US dollar. This he indicated will help reduce the demand for foreign currency and mitigate the free fall of the cedi.
Dr Bawumia while commending members of the AGI for excelling in their endeavors despite the unfavorable conditions, urged them to help improve local production to minimize of the importation of goods.
Vice President Bawumia indicated that the high demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves has had a negative toll on the local currency resulting in the depreciation of the cedi by about 53 percent this year.
This has led to “”the increase in the cost of living with higher prices for fuel, transportation, utilities”.
Dr. Bawumia while admitting to these challenging times said government is negotiating a new policy regime where gold rather than US dollar reserves will be used to buy oil products.
He stressed that the “barter of sustainable mined gold for oil is one of the most important economic policy changes in Ghana since independence”.
He said the policy when implemented, a⁴ change the country’s balance of payments and significantly reduce the persistent depreciation of Cedi.
He reiterated the need for deeper collaboration between the public and private sector to boost local production to reduce the over-reliance of imports.
President of the Association of Ghana Industries, Dr Humphrey Ayim Darkey while applauding the government for heeding to their calls and reviewing some policies as captured in the 2023 Budget and Policy Statement, the Association is looking forward to measures to ease the pressure on businesses
The 11th Annual AGI Awards ceremony saw some members being recognized and honored for their work during the year under review.