Bolgatanga: The sharp appreciation of the Ghanaian cedi is threatening the livelihoods of straw basket weavers and exporters in the Upper East Region. The sudden strengthening of the cedi by about 40% over the last year has made Ghanaian baskets expensive on the international market, putting the entire industry at risk.
According to Ghana News Agency, Mr. Nicholas Apokerah, the Executive Director of TradeAid Integrated, explained that prices previously negotiated with foreign buyers, when the dollar was trading between GHS14 and GHS15, have become unsustainable due to the cedi's appreciation to around GHS10.00. This has resulted in products becoming very expensive internationally, with negotiated prices now inadequate to cover weavers' pay and other operational expenses.
Mr. Apokerah emphasized that more than 100,000 people involved in the straw basket weaving value chain in Bolgatanga Municipality alone face losing their livelihood if the trend continues. He warned of the potential collapse of the industry, which would have disastrous effects on the region already dealing with climate change and conflicts.
Basket weaving is a significant Non-Traditional Export (NTE) for Ghana and a major source of foreign exchange. In 2023, the Ghana Export Promotion Authority (GEPA) reported that the Industrial Arts and Craft sub-sector, including baskets, generated US$95.74 million in foreign earnings, accounting for 2.30% of NTE earnings. However, the strong cedi has reduced the cedi value of export earnings, making it challenging for exporters to meet production costs and pay workers.
Mr. Apokerah highlighted a situation where a foreign customer paid 75% upfront for a 100,000-dollar order, yet the amount received in cedis was insufficient due to exchange rate changes. Exporters are absorbing losses to maintain prices for rural women weavers, but this could lead to reduced patronage and job losses. Many rural women rely solely on basket weaving during the dry season to support their families.
He called on the government for targeted interventions, including soft loans through the Ghana Exim Bank, and structured dialogue with exporters to cushion the industry during currency fluctuations. Mr. Apokerah warned that Ghana risks losing market share to competing countries if orders are not met, as major markets for Bolgatanga baskets include the United States, Germany, and the Netherlands.
He urged policymakers to recognize the strategic importance of the basket industry to the regional economy and national export earnings, and to take steps to safeguard the livelihoods of thousands dependent on it.