Fire disasters and their impact on GDP growth

The market in Accra is the largest second-hand clothes market in West Africa. Many shops there are owned by women who rely on retail for their livelihood.

In February, a fire broke out at the Kwadaso market in Kumasi. This fire destroyed shops and properties worth millions of cedis. It was hoped that these fires would prompt political leaders to take action. Unfortunately, our leaders often ignore past mistakes until the next election.

In March 2025, another fire occurred at the Adum market in Kumasi. This fire also destroyed over 2,000 shops owned by retailers and wholesalers, many of whom are women. The losses from these fires could be devastating for affected families.

**Causes of the Fire**

After the Adum fire, MP Eugene Boakye Antwi confirmed fears about power outages causing it. Between 2012 and 2016, frequent outages led to the term “Dum Sor” being added to the Oxford English Dictionary. Many Ghanaians thought Dum Sor would not return after promises were made during elections.

Antwi stated that the fire consumed traders' lifetime investments. He described it as one of Ghana's worst fires in recent memory. Eyewitnesses indicated that power had been off for hours before it was restored and then triggered the blaze.

**Fire and GDP**

The economic impact of these fires is significant but hard to measure. They cause property damage, loss of livelihoods, and disrupt business operations. Such disasters can negatively affect Ghana's GDP.

Small businesses play a crucial role in economic growth worldwide. Fires that destroy markets have dire consequences for local economies and development gains.

Disasters like these erode progress by damaging infrastructure and capital resources. They also lead to chaos, loss of working capital, sales, assets, and profitability for traders who support their families through their businesses.

**Fire Service Efforts**

Reports from citizen journalists highlighted challenges faced by firefighters during the Adum blaze. Fire Service personnel lacked enough firefighting vehicles and equipment on-site. They also struggled with limited access to water needed to combat flames.

The National Fire Service has long dealt with inadequate resources and support from governments. Personnel often face ridicule due to insufficient equipment while trying to fulfill their duties.

Instead of motivating them, Ashanti Regional Minister Dr. Frank Amoakohene criticized firefighters publicly on social media. Competence alone cannot fight fires; modern equipment is essential too.

A member of the Fire Service expressed frustration over this approach: “What was the essence of shouting just to create an impression?”

**Budgetary Allocations**

Social media has been buzzing with comments about budget allocations following the fire disaster. One analysis compared funds allocated for government communications versus those for firefighting services.

The government allocated GHS78.8 million for propaganda efforts but only GHS2.09 million for the National Fire Service nationwide. This shows a lack of prioritization for firefighting needs despite public outcry when services fail during emergencies.

During previous administrations, lower communication budgets were criticized amid economic hardships faced by citizens.

Many wonder why such a large sum is now deemed acceptable when similar amounts were previously rejected as imprudent spending on propaganda instead of essential services like firefighting equipment.

**Trend Analysis**

A ten-year analysis showed increasing occurrences of market fires in Ghana: 36 reported cases in 2006 rose to 130 by 2015. Major markets like Kantamanto suffered devastating losses affecting thousands of traders over several years due to repeated blazes.

These recurring disasters threaten both local economies and sustainable livelihoods across Ghana’s markets which are vital revenue sources for communities.

To build a resilient economy, we must prevent predictable market fires through effective national policies focused on fire prevention and response strategies.