- Flood-hit businesses may keep workers home longer as recovery stalls – GNCCI CEO
Workers of businesses affected by the recent floods may have to remain at home for some time as companies struggle to restore their offices, replace damaged stocks and recover from operational disruptions, Chief Executive Officer of the Ghana National Chamber of Commerce and Industry, Mark Badu Aboagye, has said.
Speaking on JoyNews’ PM Express Business Edition, Mr Badu Aboagye said several member companies of the Chamber had been badly affected by the floods, particularly firms in the manufacturing sector whose raw materials, finished products and operating premises suffered damage.
According to him, the affected businesses are not dismissing workers but may be unable to resume normal operations immediately because their workplaces are yet to be restored.
“We are not sacking them, but rather they have to stay home as long as we have not been able to put our offices back in shape,” he said.
He noted that for many businesses, the impact of the floods extends beyond physical damage to offices. Raw materials have been destroyed, stocks have been affected and production processes have been disrupted, making it difficult for companies to return quickly to full operations.
“Some of our members in the manufacturing space, their raw materials have been destroyed, their stocks have been affected, and the process to organise themselves will take a while,” he added.
Mr Badu Aboagye said although some affected enterprises had insured their goods and assets, the claims process could still take time, delaying recovery and prolonging the period during which some employees may remain away from work.
His comments add to growing concerns over the wider economic impact of the recent floods, which have not only displaced households and damaged properties but also disrupted business activity, supply chains and employment.
While flood-affected individuals and communities may receive some support from the state, the GNCCI CEO said the same level of direct relief may not necessarily be available to businesses operating in affected communities.
This, he suggested, could place additional pressure on enterprises already dealing with damaged premises, lost inventory and cash-flow disruptions.
Speaking on the same programme, Managing Director of Bedrock Insurance, Ernest Frimpong, said insurance companies are working to fast-track claims for businesses affected by the disaster.
“We are working with a target of five days, and we are moving fast to deal with this challenge,” he said.
He, however, noted that some claims had delayed because affected businesses had not submitted the required documentation needed to speed up processing.
The Chief Executive Officer of the Ghana Bankers Association, John Awuah, also said commercial banks are prepared to engage affected businesses on the restructuring of credit facilities.
According to him, the banking industry had taken similar steps during the COVID-19 period and would be ready to support businesses facing temporary distress as a result of the floods.
“The commercial banks did it during the COVID-19 time and we will do it again this time round,” he said.
The comments from the GNCCI, insurance industry and banking sector point to a deepening business-continuity challenge following the floods.
For many firms, the recovery process will depend not only on repairing damaged offices and replacing lost stock, but also on how quickly insurers settle claims, banks restructure loans and public authorities restore access to affected commercial areas.
The situation also raises concerns about the vulnerability of businesses, especially small and medium-sized enterprises, to climate-related shocks and urban flooding.
Manufacturers and traders whose stocks and raw materials have been destroyed may face delayed production, missed orders, revenue losses and pressure to meet payroll obligations despite reduced activity.
For workers, the instruction to stay home may not amount to job loss, but it still creates uncertainty over income security, work schedules and the speed of business recovery.
The floods have therefore exposed the need for stronger business resilience planning, including better insurance coverage, improved disaster preparedness, safer storage systems, resilient infrastructure and clearer emergency support mechanisms for affected enterprises.
As the government rolls out flood relief and mitigation measures, business groups are likely to push for recovery support that goes beyond households to include firms whose operations, jobs and investments have been disrupted.
