Local manufacturing earns confidence when foreign currency exposure is explicit and controlled. Committees read for clarity on what is paid in dollars, what is earned in cedis, and how exposure is reduced over time. A credible plan sets out the cost map, the revenue levers, and the timing of cash so that service can be met without perfect conditions. Investors are not asking for certainty. They are asking for control.
Begin with a clean currency map. State the share of input costs priced in dollars, euros and cedis. Separate equipment, spares, raw materials, packaging, power and logistics. Show which costs can be sourced locally and which cannot, then give a dated plan to lift the local share where quality allows. On the revenue side, state what can be indexed, what can carry a currency clause, and what must remain fixed to protect market position. If there is any export leg, quantify the portion of receipts that can be reserved for debt service and working capital.
Inventory policy sits at the centre of control. Set reorder points and safety stock in weeks of demand rather than guesswork, and tie them to supplier lead times and port clearance reality. Show how inventory builds ahead of known currency stress or seasonal peaks, and how it runs down to release cash when rates move against the business. Where inputs are volatile, present a dated plan for supplier diversification, vendor managed inventory on critical items, and framework orders that hold price or quantity bands for a defined period.
Service contracts can remove avoidable shocks. Lock maintenance for critical equipment in local currency wherever the market allows, and fix response times and availability so the plant does not carry hidden downtime risk. For imported spares, agree annual kits priced on a clear base with a band around currency moves, and place a modest consignment on site for components that disable lines. These choices cost less than an unplanned stop and read well in committee because they show discipline rather than hope.
Pricing discipline must be designed, not just promised. Where the customer base and regulation permit, set a formal cadence for price review, link adjustments to objective indices such as published exchange rates or landed cost, and document past behaviour to show that increases can and do pass through. Where market power is limited, redesign pack sizes, adjust product mix, or improve yield to protect margin without headline price changes. The model should show how often price moves are taken, what share of input inflation they recover, and how long the lag is in practice.
Do not rely on perfect hedging. Forward cover has a role when it is tied to dated imports or export receipts, but it is not a cure for structural mismatch. Present three exchange rate paths that reflect reasonable scenarios rather than extremes, and show acceptable performance under each. Make the operating levers visible. Shift production to higher contribution items when rates are adverse. Accelerate collections from buyers with weak balance sheets. Stretch non critical capex. Tighten stock on slow movers. The plan should read like a playbook that management can and will use.
Funding mix is part of the design. Finance imported capex in hard currency with tenors that match installation and ramp. Use local currency for working capital that turns in cedis. Where a portion of revenue is in dollars, consider a modest dollar term line for service from export proceeds. Keep amortisation aligned to cash generation rather than to a neat calendar. A small liquidity reserve that builds after peak collections and releases under defined tests will be noticed and valued.
Reporting and governance reduce price. Provide monthly dashboards that reconcile production, inventory, receivables and payables to bank statements and to the model. Track realised exchange rates on major purchases and show the gap to the assumed rate. Disclose supplier and customer concentration and the mitigation plan. Keep tax and regulatory status current and documented. Committees lower spreads when the file shows control and when the board and auditors are visibly active.
There are common errors to avoid. Models that assume constant pass through with no evidence. Inventory that grows to disguise margin weakness. Debt service that clears only at full ramp with no room for delay. Forward cover booked without matching exposures. Each of these erodes trust. Replace them with dated supplier agreements, price review records, working capital discipline and a repayment plan that survives ordinary shocks.
In Ghana, currency pressure is a fact of life. Industrial expansion can still earn long tenor and sensible pricing when exposure is mapped, actions are repeatable, and the cash story is simple. Spell out the costs in foreign currency. Show the revenue levers. Time inventory to cash. Lock what you can in local currency. Share movement with suppliers where possible. Use hedging sparingly and only where it fits real flows. Then run the plant to the plan and report with the same discipline. That is what investors pay for.
