The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has held a crucial meeting with the leadership of the Ghana Union of Traders Association (GUTA), spare parts dealers, and transport operators to address the persistent irregularities and recent hikes in the prices of spare parts across major markets.
The minister stressed that maintaining stable spare parts prices was critical for economic stability, especially given the link between spare parts costs and national transport fares.
Mrs Ofosu-Adjare reaffirmed the government’s commitment to ensuring fair pricing, transparency, and stability within the trading and transport ecosystem.
Context
The engagement, held in Accra last Thursday, follows an earlier meeting with transport operators over concerns that unstable spare parts prices were affecting transport fares and worsening the cost of living.
Transport operators had pointed out that in spite of the cedi’s steady appreciation against the dollar over the past nine months, the cost of spare parts remained high at 2024 levels, creating a significant strain within the sector.
Other consumers have also expressed concern about the high prices of goods, especially following the consistent appreciation of the local currency against the US dollar.
While the cost of fuel and some foodstuffs, as well as the exchange rate have seen significant dips, prices of consumer goods and cooked food are still high.
Root cause
Mrs Ofosu-Adjare gave an assurance that the government was working to streamline trade policies, enhance market monitoring and eliminate price distortions to protect consumers, while supporting businesses.
The Minister of Trade, who was joined by the Deputy Minister of Finance, Thomas Nyarko Ampem, subsequently invited GUTA, the Abossey Okai Spare Parts Dealers Association and the commercial transport operators to identify the root cause of the persistent price hikes.
Representatives from the association explained that while prices of many car parts had reduced in recent months, parts for Sprinter buses in particular remained high due to increased demand and limited supply, which had pushed market prices up.
The Deputy Minister of Finance stressed the need for unions to reduce the prices of goods and services in line with the recent stabilisation of the cedi.
Mr Nyarko Ampem urged stakeholders to ensure that the improved exchange rate conditions reflected their pricing.
For their part, the spare parts dealers said many transport owners did not buy directly from Abossey Okai or the parts dealers, but rather through mechanics and middlemen, popularly known as “Affairs”.
The spare parts dealers alleged that those middlemen were the ones who significantly inflated prices, creating the false impression of market-wide increases.
They, therefore, advised the public to buy directly from them as that would guarantee product quality and protect their incomes.
The stakeholders, however, agreed to establish a common platform to address concerns and grievances promptly without resorting to public confrontation.
The minister reiterated her open-door policy, indicating that it was unnecessary and unfair for groups to channel their concerns through the media when direct engagement windows were accessible.
Background
Inflation rate dropped to eight per cent year-over-year last month against 9.4 per cent in September.
This is the lowest since mid-2021 and the tenth straight monthly decline.
Although food prices led the decline, slowing to 9.5 per cent from 11 per cent, meals at eateries are still expensive.
Goods inflation, which captures tangible items such as clothing, household appliances and processed food, eased to 9.3 per cent, while services inflation, covering transport, housing and education, slipped marginally to 4.6 per cent.
The Ghana cedi has also improved against the US dollar from about GH¢15.8 in November 2024 to the dollar to GH¢11.07 on the interbank market as of last Friday.
However, many consumers are complaining that these numbers do not reflect in their purchases, hence the ministers’ intervention.
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