The Ghana Union of Traders Association (GUTA) has raised alarm over the current depreciation of the cedi and rising freight charges, stating that it is creating significant challenges for the business community, particularly the trading sector.
The association expresses deep frustration, noting that the situation is rendering the cost of doing business unbearable and leading to a surge in prices of goods and services for consumers.
GUTA highlights that the depreciation of the cedi is driving up the cost of goods, making it difficult for businesses to maintain affordable prices.
This inflationary pressure, coupled with reduced purchasing power for consumers, is resulting in lower turnover for businesses.
In a press statement, it stated that businesses are struggling to repay loans to banks due to the financial strain caused by the depreciating cedi.
Furthermore, rising freight charges, combined with customs duties benchmarked in dollars at the port, are crippling trade and commerce, causing hardships for both businesses and consumers.
GUTA indicated that he volatile economic environment has heightened uncertainty for businesses, making it challenging to forecast and plan effectively.
Moreover, the depreciation of the cedi has led to increased costs for credit purchases, making it difficult for traders to repay their overseas suppliers and resulting in increased indebtedness.
In response to these challenges, GUTA called on the government to urgently address the situation before it escalates further.
The association expressed its readiness to collaborate with the government and other stakeholders to find viable solutions to mitigate the impact of the depreciating cedi and rising freight charges on businesses and the economy as a whole.