Traders strike, retailers cash in

Traders in Accra closed their shops for the second day in protest at the rapid depreciation of the cedi against major foreign currencies and the introduction of a 20.5 per cent special tax by government on certain imported items.

Some retailers, however, took advantage of the strike to sell to customers. A survey by the Ghana News Agency around major trading centers in the city revealed that most spare parts shops at Kokomlemle, Abossey Okai, Kaneshie and Tudu were shut. Angry traders were seen in small groups and insisting that they would not open till government took action to resolve their grievances. Some of the shops tied red bands to their doorknobs, signifying that they were mourning because their capital had been eroded by the fast depreciation of the cedi. Members of the Ghana Union Traders Association (GUTA) on Friday announced at an emergency meeting that they would close down their shops for a week due to the failure of the Ministry of Trade and Industry to address proposals sent to it over their concerns.

The proposals requested the Ministry to remove the 20.5 per cent special tax and make available foreign exchange at lower rates. Members of the Association explained that the imposition of the tax was uncalled for because prices of local products that the tax is meant to protect are higher than the imported items. The Public Relations officer of GUTA, Paa Kofi Ansong, said the introduction of the tax should be a gradual process and should go along with the provision of the right infrastructure that would serve as an incentive for local industries.

"The absence of such an incentive now does not call for the restriction of imports of items that cannot be produced in large quantities in the short-term." Asked whether they had the support of customers, Kwabena Obeng, a spare parts dealer at Abossey Okai, said the customers understood the issue at stake and were prepared to go along with them. He said the price hikes that double "every other day" also affects them. Ye bebre, na won so bebre (we will suffer and they will also suffer), but in the long run, if the issue is addressed, it will benefit both the traders and the customers." Bright Benefuo, another spare parts dealer, said the announcement that the 12.5 per cent Value Added Tax (VAT), up from 10 per cent, would come into effect on June one "will even make things worse". When the GNA visited other trading centers at Arena and Okaishie, it saw that most shops selling building materials, flour, rice and drugs were closed to the public. At the Okaishie market center, however, retailers were busy doing business. A provisions retailer told reporters that they purchased enough stock over the weekend to meet the demands of the public. "But if they get finished before the strike ends, then we will also have to sit and watch what will happen next."

At a meeting with reporters at its head office, executive members of the GUTA said they would not rescind their decision until something concrete was done about the situation. Paa Kofi Ansong said comments made by the Minister of Trade and Industry over the weekend were in bad taste. He explained that members were consulted on the introduction of the Value Added Tax (VAT) but "we were not allowed to contribute in any way to the introduction of the 20.5 per cent special tax". He said the strike action was at the moment limited to Accra but warned that should government fail to address their concerns, it would be extended to GUTA members throughout the country. He said members were ready to dialogue with government to find a common solution to the problem. During its rounds, the GNA found that everything was calm. Though the police have promised protection for traders and the public, they were not seen in the various trading areas.