The Ashanti Region, once a thriving hub for business activities, is now facing significant economic challenges that are impacting various sectors including agriculture, industry, and commerce.
The Suame artisanal hub, the Kejetia and Central Markets, and the Kente Industry, which were once vibrant centers of economic activity, are now struggling for survival.
The Suame Magazine, which is home to an estimated 200,000 artisans and 12,000 shop-owning entrepreneurs, has seen a decline in activity and an increase in unemployment due to economic downturn.
Several factors have contributed to the struggles of businesses in the region, including the introduction of new taxes, high import duties, high lending rates, and the recent power challenges.
The government’s implementation of taxes such as the E-Levy, Emissions Levy, Communication Service Tax (CST), 3% VAT Flat Rate, and incremental VAT increases has added financial strain to consumers and businesses, impacting operational costs and monthly budgets.
In addition to tax burdens, approximately 20 different duties at the various ports and levies imposed by local assemblies are further hindering businesses in the region.
The combined impact of these economic factors has led to the collapse of numerous businesses and has left many others struggling to survive.
The Ashanti Regional Chairman of the Chamber of Commerce, Stephen Acheampong, and the Secretary of the Combined Kejetia Traders Association, Ruben Ameh, have expressed concerns about the challenges faced by businesses in the Ashanti Region.
They have highlighted that many businesses in the region are struggling, and a significant number of them have already collapsed due to the various factors.
Traders at the Kejetia, Central, and Asafo markets have been particularly affected, with about 800 people losing their businesses after being relocated to the Racecourse Market and others facing challenges due to poor infrastructure and market conditions.
The abandonment of the various market projects including the Kejetia market redevelopment project, the Krofrom market, among others are affecting businesses and also impeding the KMA’s intention to decongest the CBD.
Cold store operators at the Asafo market are also concerned about the potential collapse of their businesses due to power challenges and high transportation costs.
About 20 to 30 percent of operators have folded up their businesses owing to continuous losses.
Farmers in various parts of the region, such as Nobewam, Biemso, and Ejura, are grappling with the impact of high input costs, transportation challenges, and poor road networks, which have inflated the prices of agricultural inputs and affected cultivation.
While the Ghanaian economy is showing signs of stabilization after implementing an IMF-supported economic program, the impact of these measures appears to have had little effect on the local economy.
The business community in the Ashanti Region is in need of a conducive environment that supports expansion and growth.
The struggles faced by businesses in the region are a cause for concern, and it is imperative for stakeholders to address the economic challenges and create an environment that fosters sustainable business growth and development.
