While the Ghanaian cedi has recently shown signs of recovery against the US dollar, don’t expect spare parts prices at Abossey Okai to drop just yet. Traders at the popular auto hub say it’s not that simple.
According to many dealers, the spare parts currently on their shelves were imported when the dollar was much stronger, so slashing prices now would mean selling at a loss.
“For now, maybe it can’t be possible,” explained Francis Appiagyei, one of the dealers. “We ordered the goods at a certain rate which is higher than what we are seeing now. When we sell those and order new stock at the reduced rate, then prices can come down.”
Yaw Ansong didn’t mince words either. “I haven’t ordered new ones so I can’t reduce the price. If I do, I’m going to lose my job,” he told Citi Business News.
Their stance runs contrary to an appeal by the Abossey Okai Spare Parts Dealers Association, which has urged its members to reflect the cedi’s rebound in their pricing. But for the traders on the ground, it’s a waiting game.
Eric Osei Danso says he’s open to dropping prices—but only if the cedi holds steady. “We’ve heard the dollar is down and the cedi is gaining. We’ll reduce prices when we see the rate remains stable. Not immediately.”
Bottom line? While Ghana’s currency is bouncing back, spare parts prices are likely to stay put—at least for now.
