Ghana’s Inflation Hits 3-Year Low as Shoprite Exits Market and Remittances Plunge 50%

bernard boateng
Aug 7
3 min read

Ghana’s macroeconomic landscape is shifting rapidly, as headline inflation drops to its lowest point since 2021, multinational retailer Shoprite prepares to exit the market, and the cedi’s strength triggers a dramatic drop in remittances. These developments are reshaping consumer prices, retail dynamics, and household incomes nationwide.

Inflation Falls to 12.1% in July – The Lowest Since October 2021

The Ghana Statistical Service (GSS) has reported a significant drop in the country's headline inflation rate, which fell to 12.1% in July 2025, down from 13.7% in June. This marks the seventh consecutive monthly decline and represents the lowest inflation rate Ghana has seen since October 2021.

Food inflation: Fell to 15.1% (from 16.3%)
Non-food inflation: Dropped to 9.5% (from 11.4%)

The decline was primarily driven by easing prices in both food and non-food items, supported by a stronger cedi and improved supply chain efficiencies.

Regionally, the Upper West Region continued to post the highest inflation at 24.8%, which, although significantly above the national average, is a decline from June’s 32.3%. On the other end of the spectrum, the Central Region recorded the lowest inflation at 7.7%.

Economists suggest that this disinflation trend could influence the Bank of Ghana’s next interest rate decision, potentially opening up room for a rate cut if price stability continues into the next quarter.

Shoprite’s Exit Sparks Debate on Local Industry and Jobs

South Africa’s retail giant, Shoprite Holdings, has confirmed its decision to exit the Ghanaian market, joining a list of African nations where the retailer has already pulled out, including Nigeria, Kenya, Uganda, and Madagascar.

In June, Shoprite received a binding offer for its seven stores and one warehouse in Ghana. The company cited currency instability, inflation, high import duties, and stiff local competition as reasons for its exit strategy.

Mixed Reactions from the Public:

Job loss concerns: Many Ghanaians worry about unemployment and reduced access to affordable goods.
Local industry opportunity: Others see the exit as a chance for local retailers to expand and retain capital within the country.
Supply chain disruptions: Analysts caution that unless local players scale up quickly, there could be temporary shortages or price hikes.

“If there’s no alternative in place, the economy will suffer. People could lose their jobs,” said Jedaiah Apenteng, a frequent customer at Shoprite near Accra Mall.

While Shoprite has yet to reveal the buyer of its Ghanaian assets, the development is expected to reshape the retail sector, paving the way for indigenous brands and regional chains to take the lead.

Cedi’s Strength Slashes Remittances by 50%, BoG Warns

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has revealed a near 50% drop in remittance inflows, triggered by the sharp appreciation of the cedi against major currencies.

According to the BoG, the local currency has appreciated:

Over 40% against the US dollar
31% against the British pound
24% against the Euro

Dr. Asiama explained that many Ghanaians in the diaspora have paused sending money home, concerned that their transfers are now yielding lower value in local currency.

“People who used to send remittances for projects have suddenly stopped... we have observed a near 50% decline,” Dr. Asiama stated at the launch of the BoG Chair in Finance and Economics at the University of Ghana.

While this reflects a stronger macroeconomic outlook and rising investor confidence, the unintended side effect is reduced financial support for households that depend on remittances.

The BoG plans roadshows in top remittance-originating countries to educate Ghanaians abroad on the economic benefits of continued transfers, regardless of exchange rate dynamics.

Investor’s Insight: MTN Shares Lead as Inflation Eases and Retail Shifts

Ghana’s investment climate is becoming increasingly attractive on the back of slowing inflation and strengthening currency fundamentals. One standout performer this year has been MTN Ghana, whose stock has surged 48.80% year-to-date (YTD), currently trading at ₵3.72 per share.

This stellar performance comes as investors seek out strong, stable companies in sectors resilient to currency shocks and shifting retail dynamics. MTN’s dominance in telecoms and mobile money, combined with a rising customer base, has made it a prime beneficiary of the broader macroeconomic improvements.

Stay tuned to the Cedi Board® for real-time updates on Ghana’s financial pulse. From prices and policy to investment tips that help you make sense of the numbers.