The COVID-19 Rapid Survey Business Tracker by the Ghana Statistical Service (GSS) has revealed that businesses serving in the food and accommodation sector of the economy lost close to 60% of their revenues during the partial lockdown imposed by government to curtail the spread of COVID-19.
The tracker was put together by the GSS and its partners.
According to Government Statistician, Professor Samuel Kobina Annim, this sector suffered mostly in terms of sales lost compared to other sectors.
“The accommodation and food subsector recorded the highest drop in sales. So although our bars masked the effect of the accommodation and food subsector, indeed the accommodation and food subsector recorded the highest decline in sales to the tune of 57%.”
Prof Annim added that, many businesses for obvious reasons shut their operations reluctantly during the lockdown.
“Clearly, one of the major issues that led to closures of businesses was the partial lockdown in Greater Accra and Greater Kumasi and indeed some pockets of the Central Region. Once we had partial lockdown, what that meant was that businesses in these areas had to close down. Indeed, they had to close down involuntary.”
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One of the conclusions made by the GSS is that, majority of businesses didn’t turn to virtual platforms during the lockdown. This is not surprising as many businesses in the country are known to be in the informal sector and as such do not have the requisite formal knowledge to make the switch to digital.
The tracker also found out that more than 115,000 businesses have either permanently or temporarily shut down due to the outbreak of the pandemic.
It also revealed that more than 35,000 have lost their jobs during the partial lockdown. In addition, so far, more than half a million workers have also had their wages slashed.
Regardless of government’s initiatives to support businesses with a 600 million cedis stimulus package, close to a 131,000 businesses revealed that they still have challenges accessing finance with over 60% calling for subsidized interest rates.
On Sunday, 28th March 2020, President Akufo-Addo announced a partial lockdown on Greater Accra, Greater Kumasi and some parts of the Central Region, Kasoa and its environs to be specific.
The three week lockdown did not end before its impact on the economy started becoming apparent as complains by many businesses pleading for government support to stay afloat became prevalent.
Albeit the lifting of most restrictions excluding, mainly, border closures, businesses are still faced with the inability to forecast.
