Prices of goods in Ghana have generally reduced, and traders who refuse to adjust their prices are only hurting themselves, President of the Ghana Union of Traders’ Associations (GUTA), Clement Boateng, has said.
Speaking on Joy News’ PM Express on Monday, Mr Boateng said the cedi’s appreciation has created gains for the business community, and those gains must be passed on to consumers.
He criticised what he described as a deliberate refusal by some traders to reduce prices, even as input costs have fallen.
“I see the action of not wanting to reduce prices as a deliberate issue,” he said, arguing that some people refuse to adjust prices “irrespective of the fact that the commodity, some of the commodity, commodities that he’s using… has gone down.”
According to him, the problem goes beyond business decisions and reflects an attitude in the marketplace.
“And I see that as an attitude of some of Ghanaians that, irrespective of whatever situation that we find ourselves, we will not let our compatriots also enjoy the gains that we have made,” he stated.
Mr Boateng maintained that the cedi’s appreciation is no longer in doubt and has been sustained for some time.
“It is an undeniable fact that the cedi has appreciated for quite some time,” he said.
He added that the business community has benefited, and it is only fair that consumers also see relief in their prices.
“The business community has made some gains. So definitely, the gains that we have made, we are supposed to also pass it on to the consumer, for the consumer to also enjoy a bit of what has happened in the marketplace,” he said.
When asked directly by the host whether that had happened, the GUTA President was emphatic. “It has happened across the board. Yes, across board,” he insisted.
However, he admitted there are exceptions, describing them as “bad nuts in every community.”
“People have made up their mind that they will not reduce their prices,” he said.
But Mr Boateng warned that such traders operate in a competitive environment where refusing to reduce prices can backfire.
“And I pity those people, because the market that we are in is a very, very competitive market,” he said.
He explained that most businesses rely on credit facilities and turnover, meaning traders cannot afford to hold goods while others sell quickly.
“The business that we do, we use facilities in doing the business, and businesses thrive on turnover,” he noted.He cautioned that any trader who insists on keeping prices high will lose customers to competitors who sell faster and restock more quickly.
“So if you sit behind your goods… and you will say, you will not reduce it for the consumer… you do so at your own expense,” he said.
“Your neighbour will sell fast and then bring in more goods to make the turnover that he wants, and his business will thrive, and then you will sit beside your goods, and will not make any sales,” he added.
Mr Boateng said the broader evidence of falling prices is also evident in the direction of inflation.
“So I can tell you for a fact that generally, prices have gone down. And that is why inflation also seems to be going down,” he said.
To explain his point, the GUTA President defined inflation as the purchasing power of money.
“What does inflation mean? Inflation simply means having a purchasing value of your money on either goods or services,” he stated.
And on the key issue of prices, he concluded with a firm conclusion: “I can tell you clearly that, if you want to talk about prices of goods… prices of goods… have generally come down.”
