Economic Crisis: Traders Warn About Possible Shortage Of Food During Christmas

• It's likely going to be a tough Christmas for Ghanaians as food shortage looms
• Traders have disclosed that they have been unable to import enough foodstuffs for the Ghanaian market because the cedi fall has eroded their capitals
• The Ghana Union of Traders Association has said government must be cautious about the state-led agenda to discourage imports

Traders in Ghana fear they will not be able to import enough food products and other goods to meet the Ghanaian market during Christmas.

One of the largest association of traders in the country, the Ghana Union of Traders Association (GUTA) say the depreciation of the cedi and hyperinflation has significantly affected their business.

GUTA president Joseph Obeng said the Ghanaian market for foodstuffs like rice, oil and other consumables is in for a difficult road ahead.

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“The capital of most businesses has eroded by about 50%,” he told Citi News.

He said as a result of the depleted capital, many traders have been compelled to cutdown on the volume of their imports.

“The prices may not also be as they used to be. I can foresee that happening because benchmark values [at the ports] have been reduced by over 60%. So the consumers should not be looking at the traders, but rather the policymakers,” he blamed the government for possible food shortage.

He said while the president’s call for a reduction of imports as a way of dealing with the economic challenges is a good one, it must be approached cautiously.

Joseph believes the country could trigger another crisis if the quest for the improvement of local industry is pursued haphazardly.

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“If we want to industrialise and consume what is our own, we should be able to identify the areas we have the comparative advantage in Ghana. Importation has become so difficult these days, but how are the local manufacturers taking advantage?

“They are unable to take advantage because there is a thin line between the manufacturing here because the companies also import about 90 per cent of the production inputs,” he said.

He wants the government to put in place robust mechanisms to ramp up the forex in the country.

KT Hammond Narrates Near Fight At Filling Station Over “Exorbitant” Petrol And Diesel Price Hikes

In a separate story, YEN.com.gh reported that the rampant fuel price increases are hitting hard at everyone, even legislators who are always perceived to be better off than the average Ghanaian.

MP for Adansi Asokwa KT Hammond has disclosed that he caused a major scene at a fuel station over the constant fuel price hikes.

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Ayorkor Botchwey predicts the worse is yet to come for Ghana's economy

He blames petroleum marketers and bulk distributors for the astronomical price hikes, saying they were cheating the system.

Source: YEN.com.gh