The President of the Ghana Union of Traders Association (GUTA) says many businesses in the country have been struggling to stay afloat since the last quarter of 2022.
Speaking on The Probe on JoyNews, Joseph Obeng stated that as a result of inflation and the depreciation of the cedi that characterised the last months of 2022, many businesses lost more than half of their capital.
He stated that “so, most businesses are unable to even import the volumes that we used to import. That's why even the port is dry. If your capital is $100,000 and it has been depleted by 50%, now you are only able to change by virtue of the depreciation, only $50,000. So can you bring the same quantity of goods now?”he quizzed.
“The last few months of 2022 have seen businesses suffering too much. We are actually suffocating. If you look at the last quarter of 2022, that's where the exchange rate, the depreciation of the cedi, reached its peak and so most of our capital got depleted, over 50%” he said.
Mr Obeng indicated that even though the cedi has appreciated in the past few months of 2023, businesses are still “overburdened” by taxes and the cost of doing business is also high, affecting businesses.
“The inflation that we experienced about 53% was tied up to the exchange rate, the depreciation last year. And so if the exchange rate is being stabilised, then it is expected that inflation will follow suit. Why is inflation not coming down? Inflation is not coming down because even the Bank of Ghana keeps on increasing the monetary policy rate which is not the solution.”
The GUTA President said these decisions also compound the cost of doing business.
Latest Stories
-
35th CIMG Awards: Full list of winners
2 hours -
The Multimedia Group wins big at CIMG Awards 2023
2 hours -
Bernard Mornah wins PNC flagbearship race
3 hours -
Video: Confusion at PNC National Executives election
3 hours -
Rapper E.L. joins King Promise as Guinness Accravaganza headliner for September 21 showdown
4 hours -
PNC Congress: Bernard Mornah leads in Greater Accra Region
5 hours -
Reject violence, divisive rhetoric, embrace peace ahead of elections – Bawumia appeals to Ghanaians
5 hours -
SEFF’s debut single ‘Father’ sets stage for bold new talent
6 hours -
Super typhoon Yagi kills four in Vietnam
6 hours -
Hollard Insurance-UENR Mentoring Day: Students urged to let hard work, integrity shine to advance career
6 hours -
2024/25 GPL: Vision FC opens campaign with draw against Berekum Chelsea
6 hours -
If Baba Yara pitch was good, Mumin clears the ball – Laryea Kingston
7 hours -
GPL 2024/25: Samartex begin title defence with draw against Dreams FC
8 hours -
Financing road construction and maintenance through a special fuel levy: A sustainable solution for Ghana’s road infrastructure
8 hours -
Ghana Celebrity Impact Awards 2024 launched to honor positive social influence
8 hours