Ghana’s Cedi Gains Value, but Ho Residents See No Price Drop Amid Economic Changes

• Despite the 24% appreciation of the Ghanaian cedi in 2025, transport fares and prices in Ho have not decreased as expected
• Drivers have cited fuel prices and maintenance costs as reasons for not lowering fares
• According to the Bank of Ghana, the cedi has gained more than 24% against the U.S. dollar so far in 2025

In 2025, Ghana’s cedi has made headlines for its impressive rebound. Yet in the streets of Ho, Volta Region, residents are asking a simple question: If the cedi is stronger, why is everything still so expensive?

Despite a 24% year-to-date appreciation against the US dollar, the cost of living in Ho is still a matter of great concern to residents.

Cedi's strong performance in 2025

According to the Bank of Ghana, the cedi gained more than 24% against the U.S. dollar in the first five months of 2025.

In May alone, it traded around GH¢11.85 to the dollar, reversing earlier losses and strengthening confidence in Ghana’s economy.

The Central Bank attributes this strong streak to:

• Tight monetary policy
• Strategic forex injections totalling $425.5 million
• Favourable global market conditions

The Ghana Private Road Transport Union (GPRTU) quickly moved to capitalise on this momentum, ordering a 15% reduction in transport fares. But on the ground in Ho, that policy is falling flat.

No signs of transport fares reducing

At the Ho lorry station, Linda, a shop assistant who commutes daily to Sokode, said she was “excited” when she heard about the fare cut directive.

“But it’s been weeks, and my fare is still the same, GH¢10 every day. It doesn’t make sense. If the cedi is doing well, shouldn’t our pockets feel it?”

Other passengers echoed her frustration. George, a student travelling to Kpando, noted:

“We heard about the government order. But none of the drivers are following it. We’re suffering while the news says things are getting better.”

However, another commuter, Desmond Garnyo, noted on 27th May 2025 that the fare from Ho to Kpando, which was initially GH¢50, had dropped to GH¢45, a change that took him by surprise.

So, does this mean some drivers choose to comply while others do not?

Drivers push back: “Fuel prices haven’t fallen”

Several drivers at the Ho-Kpando and Ho-Denu terminals admitted they had not implemented the 15% fare cut.

Kwame Mensah, a commercial driver for over 15 years, said, “The cedi may be up, but fuel prices are still high. We buy spare parts priced in dollars. Nothing has changed for us.”

Another driver, Amevor, said that even if the cedi is doing better, the gains haven’t affected their operational costs. “We are not against reducing fares, but the government has to fix the other things too, fuel, parts, insurance.”

According to drivers, the directive came without support or clarity, leaving them in a tough spot.

"We bought when the Dollar was high"

In the bustling Ho Central Market, traders say they haven’t adjusted prices because their current stock was bought when the exchange rate was higher.

Auntie Dora, who sells provisions, explained: “I bought these goods in March when the dollar was GH¢13. If I reduce prices now, I’ll lose money. Maybe next month when I restock, we can talk.”

Yaw Sarpong, a fabric seller, added: “Even if the cedi is stronger, the wholesalers haven’t reduced their prices yet. We’re all waiting.”

For many, the change in currency value hasn't filtered through the supply chain fast enough to justify price reductions.

What are the authorities saying?

Efforts to reach local transport unions and market leaders for comment were unsuccessful. Several declined interviews, while others claimed they were not authorised to speak.

This lack of engagement has only added to public scepticism. As Beatrice, a schoolteacher, put it:

“The government talks. The banks talk. But the ordinary person is still paying the same for everything. Who is making sure things are enforced?”

Construction of Ho Bypass dual carriageway resumes

In April 2025, YEN.com.gh reported that construction resumed on the 10.5-kilometre Ho bypass dual carriageway, a project aimed at relieving heavy traffic congestion in Ho’s city centre.

The bypass, stretching from Sokode Etoe Roundabout to the Ho-Denu highway at Ipalco, is expected to divert commercial trucks and reduce inner-city traffic, improving road safety.

Residents, transport operators, and local businesses welcomed the resumption but urged timely completion and transparency in execution.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh