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GUTA urges government intervention as Cedi depreciation and rising freight charges threaten businesses

 In a press release issued on Tuesday, May 14, GUTA voiced deep frustration over the adverse effects of these economic challenges, particularly on the trading sector, and urged immediate action to mitigate their impact.

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The Ghana Union of Traders Association (GUTA) has raised a clarion call to the government amidst mounting concerns over the depreciation of the cedi and skyrocketing freight charges.

 In a press release issued on Tuesday, May 14, GUTA voiced deep frustration over the adverse effects of these economic challenges, particularly on the trading sector, and urged immediate action to mitigate their impact.

The current state of affairs, characterized by the steady depreciation of the national currency against major foreign currencies, has sent shockwaves through the business community. GUTA emphasizes that the depreciation of the cedi has triggered inflationary pressures, resulting in a sharp increase in the cost of goods and services. 

This surge in prices has made it exceedingly difficult for businesses to maintain profitability and stay afloat in the face of mounting operational costs.

Furthermore, GUTA highlights the detrimental effects of the rising freight charges, particularly from Asian markets, which have further exacerbated the financial strain on businesses. 

With customs duties benchmarked in dollars at the port, Ghanaian traders are grappling with significant financial burdens, leading to unprecedented hardships for both businesses and consumers alike.     

   “The rising freight charges, compounded by customs duties benchmarked in dollars at the port, are crippling trade and commerce, leading to untold hardships for businesses and consumers alike,” the statement said.

The repercussions of these economic challenges extend beyond the business community, impacting the purchasing power of consumers and hindering economic growth. 

As businesses struggle to cope with soaring costs and dwindling profits, the repayment of loans to financial institutions has become increasingly untenable, further exacerbating the financial strain on businesses.

In light of these pressing concerns, GUTA calls upon the government to implement urgent measures to address the root causes of the crisis and provide much-needed relief to businesses. 

The association underscores the importance of collaboration between the government and stakeholders to develop effective strategies that safeguard the interests. 

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