Aviation Taxes Scrapped, Lithium Deal Withdrawn, and the 'Shrinkflation' Hitting Your Wallet

Today’s economic update is a story of shrinking products and expanding policies. While consumers are grappling with smaller juice boxes for the same price, major shifts are happening at the top: a controversial lithium deal has been pulled for a better bargain, and travelers can look forward to significantly cheaper regional flights by 2026. Let's analyze the latest data and emerging trends shaping Ghana's economic landscape.

Market Movers: The "Shrinkflation" Reality

Today's Cedi Board highlights a classic economic phenomenon known as "shrinkflation," where products get smaller but prices stay the same or even increase.

Kalyppo has made a bold move that is sparking conversation. The brand has phased out its popular 250ml pack, which used to sell for roughly GH¢5-GH¢6. In its place, we now see a smaller 200ml pack selling within that same price range of GH¢5-GH¢6. This effectively means you are paying more for every drop of juice you drink. The public reaction suggests frustration. Many consumers feel shortchanged because they are getting less value for their hard-earned money. There is also a sentiment of disappointment as loyal customers were actually hoping for larger family-sized options rather than a reduction.

Ceres has taken a slightly different approach. Previously known for its 1L and 200ml sizes, the brand has introduced a new 500ml option priced between GH¢17-GH¢20. Interestingly, the market response here has been warmer. Consumers are calling Ceres a "listening brand." By introducing a mid-range size, they have bridged the gap between the small pack and the expensive 1-liter carton. It offers a new entry point for those who want more than a sip but cannot afford the full liter.

Meanwhile, Ekumfi Juice remains the steady player. Their 250ml pack is holding firm at GH¢8-GH¢10 with no change in size or price from 2024.

Key Headlines: ECOWAS Cuts Air Taxes & Lithium Deal Paused

ECOWAS to Abolish Air Transport Taxes by 2026

In a massive win for travelers and businesses, ECOWAS Member States have agreed to scrap air transport taxes and slash passenger and security charges by 25% starting January 1, 2026. This is huge. For years, flying within West Africa has been notoriously expensive. Experts have pointed out that taxes and fees often make up nearly 70% of a ticket's price. This pricing structure has suffocated tourism and made regional business harder than it needs to be.

By removing these financial barriers, we are likely to see a drop in ticket prices. This move is designed to stimulate demand and make air travel accessible to more people, not just the wealthy. For the Ghanaian entrepreneur, this means cheaper flights to Lagos or Abidjan to close deals. It is a long-term play to boost regional integration and economic activity.

Government Withdraws Controversial Lithium Agreement

Closer to home, the government has officially withdrawn the lithium mining agreement with Barari DV Ghana Limited from Parliament. This happened yesterday, December 10, following intense public scrutiny. The core issue was the royalty rate. The renegotiated deal proposed a 5% royalty (down from an initial 10%) due to falling global lithium prices. However, civil society groups and the Minority in Parliament argued this was a weak negotiation that could cost Ghana hundreds of millions of dollars.

By pulling the deal, the government is signaling that it is willing to listen to critical feedback. The Ministry has indicated plans to introduce a new, flexible royalty framework that adjusts automatically based on market prices. This would prevent the need for constant renegotiations and ensure Ghana gets a fair share of its natural resources, regardless of global market swings.

Ministry of Transport Deploys Peak-Hour Buses

If you commute in Accra, you know the struggle of "rush hour" fare overcharging, especially in this festive season. To combat this, the Ministry of Transport has deployed an emergency fleet of buses effective yesterday. These buses operate during the critical window of 4:30 p.m. to 8:30 p.m. on major corridors like Adenta, Amasaman, Kasoa, and the Tema Beach Road.

This is a direct response to complaints about trotro drivers charging exorbitant, unapproved fares when demand is high. By using Intercity STC buses that are otherwise idle in the evenings, the government is providing a safer, more predictable, and arguably cheaper alternative for workers trying to get home. While this is a temporary fix, it puts immediate pressure on private operators to play fair or lose customers.

Investor’s Insight: The First Atlantic Bank IPO Success

Why did the First Atlantic Bank Initial Public Offering (IPO) attract so much demand? The answer lies in a mix of performance and scarcity.

First, the numbers are solid. The bank reported an 89% jump in profit before tax in Q3 2025 compared to the previous year. Investors love growth, and this signals that the bank is being managed efficiently. Secondly, their asset base has grown significantly to over GH¢15 billion. When you combine this with a Capital Adequacy Ratio of 15%, you get a picture of a stable, robust financial institution.

However, the external environment played a role too. The Ghana Stock Exchange hasn't seen a major IPO in a while. Investors have been sitting on capital, waiting for a viable opportunity. First Atlantic Bank arrived at the perfect time to satisfy this hunger for quality local investment. The oversubscription is a vote of confidence not just in the bank, but in the resilience of Ghana's banking sector.

Trending Topic: #EboNoah

The hashtag #EboNoah is dominating social media today, blending humor with genuine curiosity. It refers to Ebo Noah, a preacher who claims a massive flood will begin on Christmas Day, 2025. He has been building wooden "arks" to save believers, echoing the biblical story.

The trend spiked recently after videos surfaced of him being swept away by waves during a prayer session at the beach. Despite sustaining an injury, he has returned to construction, framing the accident as a "test of faith." This resilience has captivated the Ghanaian internet. While meteorologists dismiss the flood claims and theologians question his biblical interpretation, the spectacle has everyone talking. It highlights how quickly a local story can go global through social media, tapping into our collective fascination with the end times and the supernatural.

Conclusion

Today’s data presents a mixed bag for the Ghanaian wallet. On one hand, we are seeing "shrinkflation" in the beverage aisle, where we are paying the same price for less product. On the other hand, we see significant policy moves designed to lower costs, from the removal of aviation taxes to the deployment of government buses to curb transport exploitation. The withdrawal of the lithium deal further suggests a government that is currently sensitive to public pressure regarding national revenue. As we move toward the end of the year, the balance between rising consumer costs and government relief measures will determine the real health of our household budgets.

Follow Finex Skills Hub for daily insights into Ghana's economic pulse.