Private businesses to adopt automatic adjustment formula

•    The depreciation of the cedi has impacted negatively on businesses in the country.

• The depreciation of the cedi has impacted negatively on businesses in the country.

The Joint Private Sector Business Consultative Forum has decided to develop a formula that can be used to determine the prices of goods to reflect the rate of cedi depreciation.

A statement signed by Alpha Shaban, a member of the forum who is also the General Secretary of the Ghana Union of Traders Association (GUTA), said the group had decided to adopt such mechanism to save their businesses from collapsing.

The statement said it was the position of the business community that if other institutions such as the National Petroleum Authority (NPA), the Ghana Private Road Transport Union (GPRTU), Ghana Ports and Harbours Authority (GPHA) were using such a formula to determine their charges and prices, “it will not be out of place for the forum to also adopt a similar formula”.

It said 70 per cent of its members especially, those in the informal sector risk folding up possibly by the end of October this year, due to the negative impact of the depreciation of the cedi on their operations.

According to the statement, the cedi which started in 2014 at GH¢2.00 to the dollar is now selling for GH¢4.4 to the dollar, representing over 100 per cent depreciation, thereby erasing their working capital value by about 75 per cent.

The statement advised the government to engage all relevant stakeholders to deliberate on the way forward for the depreciating cedi.

Members of the Forum are made up of Ghana Chamber of Commerce and Industry (GCCI), GUTA, Food and Beverages Importers Association of Ghana (FBIA), Ghana Auto Mobile Dealers Association (GADA), Importers and Exporters Association of Ghana (IEAG), Institute of Freight Forwarders (GIFF), Customs Brokers’ Association of Ghana (CUBAG), and Freight Forwarders Association of Ghana (FFAG).

By Times Reporter

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