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Ghanaian traders close shops as union protest soaring inflation, high cost of living

Published

2 years ago

October 20, 2022

Traders in Ghana’s capital, Accra, on Wednesday, shut their shops and businesses as the Ghana Union of Traders Association (GUTA), declared a three-day protest over the escalating inflation and rising cost of living in the West African country.

GUTA, in a protest notice to all traders and business owners in the country, said the move is meant to send a strong signal to the government that they were frustrated over its poor economic management.

“The government should listen to the plea of these businesses, though the private sector is also one of the backbones of the economy.

“So government should implement policies that will also cushion us for our businesses to grow while looking at other alternatives to also grow the economy.

“If government grows the economy and our businesses grow, there will not be all of these,” the notice signed by Edward Larbie, the chairman of the Ghana Electrical Dealers Association, said.

In the last six months, Ghana has faced an unusually high debt load with the inflation climbing to an all time high of 37 percent in September, while the Cedi has plummeted against the US dollar.

On Tuesday, the Ghanaian Cedi was officially designated as the world’s worst-performing currency in 2022 by international business media platform, Bloomberg, after it took another slump on Monday and depreciated as much as 3.3%.

To cushion the effect of the inflation, Ghana’s Central Bank has increased its benchmark lending rate by 10 percentage points this year to 24.5 percent in a bid to curtail the price growth, but however, increased borrowing costs for the traders and businessmen.

The country’s President, Nana Akufo-Addo, has been under immense pressure over his economic management after reversing his position and entering talks with the International Monetary Fund (IMF), over a $3-billion loan to shore up public finances.

Related Topics:Featured Ghana High Cost of Living inflation Protest Traders

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South Africa: Petrol, diesel prices to rise on Wednesday. Here’s why

Published

22 hours ago

November 4, 2024

Ifeoluwa Dada

Following an increase in the price of oil due to the crisis between Iran and Israel, petrol and diesel prices will be raised in South Africa on Wednesday.

The cost of unleaded petrol will go up by 25 cents per gallon for both 93 and 95. Depending on the sulphur concentration, diesel’s wholesale price will increase by either 20 or 21 cents per litre.

Illuminating paraffin’s wholesale price will increase by 21 cents per litre, and the maximum retail price of LP gas will rise by 36 cents per kilogramme.

Fuel prices dropped to their lowest points since February 2022, when Russia’s invasion of Ukraine disrupted supply chains and limited the import of Russian crude oil, sending oil prices to multi-year highs. This was at the beginning of October.

The Department of Mineral and Petroleum Resources stated on Monday that the average price of Brent Crude oil rose from $72.82 per barrel to $75.07 over the last month, following several months of pressure on the price of oil.

“The main contributing factor is the continued conflict in the Middle East and the stand-off between Iran and Israel,” the department said in a statement.

Investors are worried that an Israeli strike on Iran’s oil infrastructure will not only remove Iranian crude from the market but also incite a larger confrontation including other oil exporters in the region.

Since oil is priced in dollars, the rand exchange rate also affects fuel prices in South Africa.

According to the department, the rand averaged R17.53/$ over the previous month, down from R17.68 in September. However, this was insufficient to offset the rising price of oil.

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Fitch upgrades Egypt’s credit rating to ‘B’

Published

3 days ago

November 2, 2024

Ifeoluwa Dada

Fitch, a credit rating agency has upgraded Egypt’s rating from “B-” to “B” citing tighter monetary circumstances and the country’s improved financial standing thanks to a number of foreign investments and assistance.

“Egypt’s external finances have been bolstered… FX buffers have recovered, and we have somewhat greater confidence that the more flexible exchange rate policy will prove more durable than in the past,” Fitch said, as it also assigned Egypt a stable outlook.

As it attempts to recover from a protracted economic crisis that has resulted in record inflation, a growing debt load, and significant currency devaluations over the last two years, the North African country has been looking for significant investments.

In order to stabilise its economy, Egypt obtained a $8 billion loan package from the International Monetary Fund (IMF) this year, along with a $35 billion real estate investment package from Abu Dhabi and about $1 billion from the EU.

The IMF insisted that the loan amount was suitable, despite Egyptian President Abdel Fattah al-Sisi’s suggestion last month that his government should reevaluate the agreement in light of the country’s growing regional concerns.

Fitch also cautioned on Friday that Egypt faces a significant risk from a further escalation of the regional conflict.

Yemen’s Houthi attacks on Red Sea ships have caused trade to be rerouted from the Suez Canal, which has negatively impacted tourism and Egypt’s revenue stream. There are also dangers associated with the larger Middle East conflict.