Current economic stability healthy for businesses – GUTA

The Vice President of the Ghana Union of Traders Association, Joseph Paddy, has stated that Ghana’s current economic conditions are creating a more stable and predictable environment for businesses, particularly within the trading sector.

Speaking during the JoyBusiness Roundtable Discussion on JoyNews, which was themed “Mahama at 16 Months: Do Economic Narratives Match Real-Sector Outcomes?”, Mr. Paddy explained that recent stability in the local currency has significantly improved business planning and operational efficiency.

According to him, the relative steadiness of the Ghanaian cedi against major foreign currencies has brought a sense of confidence to traders, enabling them to make more accurate projections and long-term decisions. He described the current economic climate as a positive shift from previous periods marked by volatility and uncertainty.

“I think the economic condition we find ourselves in now is healthy for businesses. Yes, it helps you to do projection. It also gives predictability,” he said.

Mr. Paddy noted that in the past, erratic movements in exchange rates posed serious challenges for businesses, making it difficult to forecast costs, pricing, and profit margins. He stressed that without the ability to plan effectively, many businesses risked losses or even collapse.

“Not like once upon a time, when it was difficult to project, and as a business, if you are not able to do projection, you will be out of business,” he explained.

He further highlighted how previous sharp fluctuations in the exchange rate could occur within a matter of hours, creating instability in the market. In contrast, the current environment offers a more controlled and predictable trend, which he believes is essential for sustaining business growth.

“It’s not like before, where you wake up in the morning, and the dollar is 12 against the cedi, and within three to four hours it changes. This one has given us a way to do projection. This stability is healthy for businesses,” he added.

Beyond planning and predictability, Mr. Paddy pointed out that the improved currency stability is also enabling businesses to retain savings and reinvest in their operations. Reduced exchange rate volatility helps traders cut costs, manage inventories better, and allocate resources more efficiently.

He explained that many in the business community are already taking advantage of the situation by reinvesting gains into expanding their businesses, improving stock levels, and enhancing overall productivity.

“Business communities are seeing some stability, and we are ploughing back those gains into our businesses again,” he said.

While acknowledging that challenges still exist within the broader economic landscape, Mr. Paddy maintained that the current conditions provide a solid foundation for growth and resilience within the private sector.

“So far, so good. It’s a healthy business environment for the business community,” he concluded, expressing cautious optimism about the outlook for traders and businesses in Ghana.