Massive response as GUTA members close shops over depreciating cedi, high taxes

Many shops in the Central Business District of Accra have been closed since morning as members of the Ghana Union of Traders Association (GUTA) join protest over the depreciating cedi, high taxes and dwindling capital.

Checks by myxyzonline indicate a massive response which members describe as positive.

According to Power FM’s Odeefuor Kwesi Berchie, majority of the shops closed are in the Tudu, Opera Square, Makola in the Okaishe area, Abbosey Okai where the car spare parts hub is and as far as Kasoa in the Central region.

Some of the traders had tied red scarves on their locks indicating their displeasure about the prevailing economic crisis.

Some of those who spoke angrily expressed disappointment in the mismanagement of the economy and the empty assurances over the past few months about measures to stabilize the cedi.

Others said their action is very significant and are ready to sustain the closures for the next seven days regardless of the sales they would have missed.

They explained that, a collective mass action to pile pressure on government to address their concerns is more productive than to sit on the fence and gradually lose their capital as the cedi plunges further.

“We no longer make profits. When we price high people don’t buy and the longer our goods stay on the shelves, the higher price we pay for the forex losses whenever we need to import because the value of the cedi which is almost GHC13 is hurting”

GUTA IMPRESED

Guta President, Dr Joseph Obeng who led a team to assess compliance expressed satisfaction with the positive response. He said it is understandable that some few shops are still open but said their objective is not to chut doors to consumers but to register a strong protest.

The mass protest by GUTA follows a similar action by traders at the Adum Market in Kumasi who closed their shops for three consecutive days until the intervention of the Asantehemaa.

It will be recalled that in August this year, the Members of the Council of State were compelled to intervene when GUTA issued the first threat.

A joint-committee was subsequently set up to diagnose the issues, and come up with a cause of action for further deliberation and implementation.

Issues the Committee, which was expected to consider from August 29, 2022, included interest rate, exchange rate as well as the influx of foreigners within the local trading space, especially in the markets.

During that period, the dollar was trading at GH¢10 and inflation was almost at 32%. Bank of Ghana assured that the injection of the $750m Afrexim Bank loan was going to help shore up the cedi.

But that has failed. The cedis today is described as the worst performing currency compared to the dollar. It is trading on the open forex market at GH¢12. 55 as of Wednesday, October 19, 2022 with inflation at 37.2%,.

Traders are even worried more because lending rates are higher today compared to June this year for example because of the decision by the Bank of Ghana to increase policy rate to correspond with the rise in inflation while fuel prices, which affect the transportation of goods and services continue to shoot up.

Petrol is sold at GH¢13.10 on the average per liter while diesel is selling at GH¢15.99 representing 12% and 16% over the last pump price.