The President of the Ghana Union of Traders Associations (GUTA), Clement Buateng, has commended the improvement in Ghana’s macroeconomic indicators, saying the relative stability of the cedi, declining inflation and reduced lending rates are creating a more favourable environment for businesses.
Speaking on the Ahotor FM Morning Show on 12 November 2026, Mr Buateng said the Ghana Reference Rate, policy rate, lending rates and inflation were important economic indicators that directly influence the cost of doing business, the pricing of goods and services and the overall performance of the trading sector.
He explained that improvements in these indicators have a positive impact on trading activities, particularly because businesses depend heavily on currency stability and access to affordable credit to sustain their operations.
According to him, the relative stability of the cedi against the US dollar has helped importers and traders plan their businesses better, especially those who depend on foreign currencies to purchase goods from international markets.
He explained that exchange-rate fluctuations have a direct bearing on the prices of imported goods because traders must convert foreign currencies into Ghana cedis to pay for their imports.
Mr Buateng cautioned that an artificial attempt to force the exchange rate to a particular level could create further complications, potentially pushing up the cost of imported goods and compelling traders to adjust their prices to reflect the increased expenses.
He maintained that the current stability of the currency was helping businesses operate in a more predictable environment and should be sustained.
On inflation, he acknowledged the progress made in bringing the rate into single digits, noting that Ghana had maintained single-digit inflation for several consecutive months.
He, however, explained that although the inflation rate had recently recorded a slight increase from its previous low of about 4.2 per cent to approximately 5.2 or 5.3 per cent, the movement was largely influenced by developments in the food basket rather than fuel prices.
He stressed that a reduction in inflation does not automatically mean that prices of goods and services will fall, explaining that inflation measures the rate at which prices increase or decrease over a given period.
He therefore encouraged consumers and the public to assess economic improvements by comparing actual market prices and the general cost of living rather than relying exclusively on headline inflation figures.
Mr Buateng further noted that the reduction in the policy rate and its relationship with the Ghana Reference Rate and commercial lending rates were welcome developments for the trading community.
He disclosed that some commercial banks were offering lending rates of between 13 and 15 per cent, describing the development as encouraging for businesses that require credit facilities to expand their operations and maintain stock.
According to him, trading is largely driven by turnover and market competitiveness, making it increasingly difficult for businesses to maintain the high profit margins they previously enjoyed.
He explained that traders must now operate in a highly competitive environment where consumers can easily compare prices and move from one shop to another in search of cheaper goods.
He said businesses that previously enjoyed profit margins of between 30 and 50 per cent were now finding it difficult to achieve such returns, with some traders considering profit margins of between 10 and 15 per cent a reasonable outcome under the current market conditions.
He added that the situation makes economic stability, affordable credit and efficient business operations particularly important to the survival of traders.
GUTA Wants Women’s Bank Operationalised
Looking ahead to the 2027 Budget presentation, Mr Buateng identified the operationalisation of the proposed Women’s Bank as one of the key expectations of the trading community.
He said the announcement by the Vice President about the constitution of a committee to engage the Bank of Ghana on the establishment and operationalisation of the institution was a welcome development.
He explained that the proposed bank could provide an important financial opportunity, particularly for women engaged in trading and other business activities.
However, he urged the government to move beyond announcements and ensure that the necessary regulatory and licensing processes are completed to enable the institution to commence operations.
According to him, the government must demonstrate a clear commitment to the project so that prospective beneficiaries can begin accessing the intended financial support rather than waiting indefinitely for its implementation.
Port Congestion Remains a Major Concern
The GUTA President also called for urgent measures to address congestion at Ghana’s ports, warning that delays in clearing goods increase the cost of doing business and ultimately affect consumers.
He explained that importers already incur significant expenses when purchasing and shipping goods into the country, and additional costs arising from delays at the ports place further financial pressure on their operations.
He noted that traders cannot always absorb such additional expenses because doing so would affect their working capital and business sustainability.
Consequently, many are compelled to transfer the extra costs to consumers through increased prices, further worsening the financial burden on households.
Mr Buateng recalled that the Deputy Finance Minister had recently engaged relevant stakeholders in the shipping and port clearance chain to discuss the challenges and identify measures to improve cargo clearance.
He expressed hope that the 2027 Budget would provide practical interventions to address the situation, particularly by improving coordination among shipping lines, port authorities and other stakeholders involved in the clearance process.
He emphasised that shipping lines and other stakeholders must work together to ensure that goods are cleared within reasonable periods to prevent unnecessary delays and additional charges.
He said GUTA expects the government to use the budget to provide clear direction and sustainable solutions that will make the clearance of goods easier, faster and less expensive.
Mr Buateng maintained that addressing port congestion, ensuring the operationalisation of the Women’s Bank and sustaining the gains in macroeconomic stability would be critical to improving the business environment.
He stressed that the ultimate expectation of traders was to see economic improvements translated into lower operational costs, increased business activity and better conditions for both traders and consumers.
Story by Stephen Kwaku Owusu Mintah / Ahotoronline / Accra.