Some business owners kick against GUTA’s directive to cut down commodity price

There is division in Ghana’s trading community. Some business owners oppose a directive from the Ghana Union of Traders Association. This directive asks traders to reduce the cost of goods immediately.

The national traders’ union issued a statement. They urged traders to lower prices as the cedi appreciates against major currencies. Since the start of the year, the cedi has increased by over 10 percent.

Charles Kusi Appiah, Executive Secretary of Ashanti Business Owners, spoke on Luv FM. He stated that foreign exchange rates are not the only factor affecting prices. Other costs like utility tariffs, borrowing costs, and taxes also impact pricing.

He said, “This is a right call, but other factors contribute to price increases.” He noted that borrowing costs and consumption tax remain unchanged. Although inflation has decreased slightly, it is not enough for price reductions.

Anthony Oppong, Ashanti Regional Chairman of GUTA, agrees with Appiah. He explained that some goods were bought before the cedi strengthened.

Oppong said, “We bought stocks when the dollar was at 16.2 cedis.” If he sells them now at 13 cedis, he would incur losses. This issue particularly affects the spare parts industry due to long shipping times.

Some consumers expressed their frustration during the show. One caller asked why prices rise quickly when the dollar increases but not when it decreases. Another caller accused traders of prioritizing profits over fairness.

Despite this backlash, traders expect prices to drop soon in line with GUTA’s directive.