Cedi fall has resulted in high cost of doing business – GUTA

The fall of the Cedi against the major trading currencies especially the Dollar has resulted in increasing costs of doing business in Ghana, the President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has said.

Dr Obeng said that businesses are unable to service their debts with the banks because of the exchange rate issues.

“We’re unable to service debt at banks, the cost of doing business has gone up,” Dr Obeng said on the Ghana Tonight show on TV3 Monday, May 13.

Meanwhile, Finance Minister Dr Mohammed Amin Adam has said that the rate of the depreciation of the Cedi has slowed this year compared to last year.

Despite recent pressures on the local currency, he said, the cedi’s depreciation year-to-date of 12% is far lower than its depreciation of 27% in the same period last year.

He was speaking during the opening ceremony of the 2024 3i Summit in  Accra on Monday May 13.

“For this reason, Ghana’s economic rebound has been quite swift with economic growth ending the year 2023 at 2.9% against a target of 1.5%, inflation heading towards the year-end target of 15%, and interest rates declining. Despite recent pressures on our currency, the cedi’s depreciation year-to-date of 12% is far lower than its depreciation of 27% in
the same period last year,” he said

He further stated that the Government is implementing measures on the fiscal side including acceleration of disbursements of almost $1 billion by the development partners between now and December this year to support the economy.

“As we convene at the 3i Africa Summit in Ghana, it is incumbent on us to acknowledge the remarkable strides that Ghana has made in nurturing a vibrant fintech ecosystem. Ghana’s fintech sector boasts of a diverse array of startups, accelerators and regulatory initiatives, solidifying our position as a frontrunner in fintech innovation across the continent.

“I commend the Bank of Ghana for being proactive in establishing a regulatory framework conducive to fintech innovation, exemplified by initiatives such as the Payment Systems and Services Act, Act 987 and establishing a Fintech and Innovation Office. These efforts affirm our commitment to fostering innovation while safeguarding consumer interests
and preserving financial stability.

“I want to take this opportunity also to acknowledge the many incubators across Ghana, including the Ghana Tech Lab and MEST Africa, that provide invaluable support to fintech entrepreneurs through mentorship, financial backing, and networking opportunities.”