Traders across the country are crying foul over the devastating impact of the depreciating cedi on their activities.
The business community is up in arms as the development has left some of them running into debts.
According to the Food and Beverages Association of Ghana (FBAG), the model of many entrepreneurs involves selling on credit, which has made it difficult for importers to pay back.
Speaking on Top Story, FBAG’s Executive Chairman, John Awuni described the situation as a crisis as many products.
“It is a massive disaster because we see the working capital of most of the businesses being eroded.”
“Some of the businesses have even stopped selling because they don’t even know how to price it. Ghana is generally a credit market, they receive supply from abroad on credit and they give to the Ghanaian distributors or wholesalers and retailers on credit.”
He further explained that “by the time they pay you the money for you to buy the dollar and pay back your suppliers, you are in serious trouble.”
But FBAG is not the body feeling the pinch.
Earlier, the Ghana Union Traders Association (GUTA) also expressed its frustration over the current state of the local currency.
The association in a statement signed by its president, Dr Joseph Obeng said the cedi’s depreciation has created a big mess for the business community especially, the trading sector.
It added that the economic crisis, coupled with the ever-rising freight charges from Asia is rendering the cost of doing business unbearable.
“The current state of affairs has far reaching implications and has caused prices of goods and services to increase for the consuming public.”
The association narrated that the inflationary pressures resulting from the depreciating cedi have pushed the cost of goods through the roof, making it increasingly difficult for businesses to stay afloat.
Source: myjoyonline.com
