Demurrage charges pose threat to Ghanaian businesses, says Abossey Okai Spare Parts Dealers Association
The Abossey Okai Spare Parts Dealers Association, the leading umbrella organization for spare parts dealers in the Greater Accra Region, voiced strong discontent with demurrage charges at the ports, deeming them detrimental to the nation’s businesses.
The Association attributed these demurrage charges to the prevailing high cost of goods and services in the country, particularly affecting businesses in the Abossey Okai spare parts dealership hub. Mr. Takyi Addo, Head of Communications for the Association, expressed grave concerns over the adverse effects of demurrage charges, citing a rapid collapse of numerous businesses in the sector and significant capital losses for individuals involved.
Of notable concern is the alleged exploitation of demurrage charges by certain political actors. Mr. Addo claimed that these actors utilize their influence to ensure their associates acquire goods subjected to demurrage, exacerbating the challenges faced by innocent businesspeople.
In a noteworthy stance, the Association lent its support to the National Democratic Congress’s (NDC) promise to introduce a policy enabling importers to secure buyers for goods facing demurrage. Mr. Addo asserted that the implementation of such a policy could prove advantageous for business stakeholders, potentially mitigating the detrimental impact of demurrage charges.
Furthermore, the Association questioned the rationale behind the weekly review of dollar rates at the ports, advocating for a quarterly assessment instead. Collaborating with the Ghana Union of Traders Association, they sought a more stable and predictable currency exchange rate regime, given its substantial influence on the overall cost dynamics of imported goods.
As businesses in Ghana’s spare parts sector grapple with these challenges, the Abossey Okai Spare Parts Dealers Association’s call for policy reforms and a measured approach to currency exchange rate reviews underscores the urgency of addressing issues affecting the resilience and viability of the nation’s economic players.
