- Cedi strengthens from 17 to under 12 per US dollar, easing import costs
- Removal of COVID-19 levy lowers effective import duties for spare parts
- 80% of Abossey Okai traders have reduced prices; further reductions expected by Feb–Mar 2026
Minister Elizabeth Ofosu-Adjare attributed the recent decline in spare parts prices to the sustained appreciation of the cedi, noting that the exchange rate has strengthened from around 17 cedis to the US dollar in 2024 to about 12 cedis, easing foreign exchange pressures on imports and creating room for price reductions.
She also pointed to fiscal policy measures, including the removal of the COVID-19 levy in the 2026 Budget, which is expected to lower import costs and reduce the overall tax burden on imported spare parts.
Speaking after engaging with spare parts dealers at Abossey Okai, the Minister observed that the prices of some spare parts and related items have already started to decline, reflecting improved cost conditions.
She reaffirmed the government’s commitment to exchange rate stability, fiscal consolidation, and broader macroeconomic gains, urging traders to pass on these benefits to consumers through more competitive pricing.
“In 2024, the dollar went up to 17 cedis. Now it’s under 12 cedis, so there’s no justification for prices to remain high or increase,” she said. “This is about my fifth engagement with traders at different levels. Earlier in 2025, when the dollar started fluctuating, I invited traders, and they promised to reduce prices within four months. Many did—especially for tomatoes, rice, oil, and even some spare parts. However, some traders have yet to adjust their prices to reflect the cedi’s strength.”
She added that about 80% of traders she engaged at Abossey Okai have reduced their prices, a fact confirmed by drivers she met on-site. She expressed optimism that further reductions would follow due to the removal of the COVID-19 levy, which will lower import duties. “By February or March, I expect prices to improve further,” she said.
The Minister also advised vehicle owners to purchase spare parts directly from dealers rather than through middlemen, warning that intermediaries often inflate prices and distort market signals, even in an environment where prices are declining.
“We know middlemen increase costs, giving Abossey Okai a bad name. Buyers should shop directly and compare prices at different stores. In a free market, it pays to shop around,” she advised.
Meanwhile, Henry Okyere Jnr., Chairman of the Abossey Okai Spare Parts Dealers Association, pledged continued efforts to encourage members to reduce prices in line with market conditions.
“We are moving from store to store educating members that the dollar is stable and duties are down. They should adjust their prices accordingly so the market can reflect it. Give it about another 30 days or so, and we should see improvements,” he said.
