The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNCCI, Mr. Mark Badu Aboagye bemoaned the high cost of living in the Greater Accra Region.
While addressing the cost of living in Accra, he shed light on the growing challenges faced by individuals and organizations due to the rising cost of goods and services.
His remarks were centered around a delegation from Ethiopia that faced challenges in finding accommodations that matched their budget in the capital city. His statement offered a broader insight into the economic realities in Ghana’s urban centers, particularly Accra, and how location impacts cost.
“We were working on a delegation that is coming from Ethiopia. I mean, they hold Ghana high in esteem. So they said they needed a hotel, and their budget is $45 in the center of Accra, and we said no, You cannot get it. The least you can get is about $100, and they are surprised.”
Mr. Mark Badu Aboagye Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNCCI
This situation highlighted the reality that foreign delegations and visitors often encounter when planning trips to Ghana’s capital, where accommodation costs in central locations are significantly higher than anticipated. For Mr. Aboagye, this incident serves as an example of the broader issue of the high cost of living in Accra.
Mr. Aboagye expressed concern over the growing financial pressures on individuals and organizations due to these increases, while also acknowledging that profiteering was an issue in some instances. He emphasized; “The cost of living in Ghana is very high. I’m not in any way justifying those who are profiteering.”
Mr. Aboagye recognized that while some businesses may be taking advantage of the economic situation, it is clear that the overall cost of living has been climbing, particularly in major urban centers like Accra. From rent and accommodation to the prices of basic goods, Ghanaians are feeling the pinch of a more expensive lifestyle.
Price Discrepancies Across Locations
A significant portion of Mr. Aboagye’s statement revolved around the price differences that exist between various locations in Accra and beyond.
Meanwhile, others raised concerns that for instance when one buys food in East Legon, and you look at what you get, and you move to maybe somewhere Kokomlemle there is the same quantity and everything yet the cost of food within the environs of East Legon is quadruple compare to other regions in the greater Accra.
This “locational effect” he referred to means that businesses in high-end areas such as East Legon can charge much higher prices for the same goods and services simply because of the prestige associated with that location.
He elaborated on this point by emphasizing the massive price differences in real estate between different parts of Accra. Mr. Aboagye touched on the dramatic differences in land cost depending on the location.
“We were just discussing our land in East Legon. The same land that you get for maybe 20,000 in Agbogbloshie or somewhere outside Accra, you get it in 3,000,000 dollars, not in cedis.”
Mr. Mark Badu Aboagye Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNC
This staggering difference in land prices underscores the impact of location on the cost of living in Accra. People who live or operate businesses in areas like East Legon face much higher costs, not only for real estate but also for everyday expenses such as food and utilities.
Prestige and Its Effect on Consumer Behavior
He pointed out that people may be willing to pay more for products or services simply because of the status associated with the location.
“You can just go and stand somewhere and say I eat my Waakye from East Legon. That one alone, people will give you that respect that probably you are demanding.”
Mr. Mark Badu Aboagye Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNC
This highlighted the notion that, in some cases, consumers are not only paying for the goods or services but also for the social recognition and status that come with purchasing from a prestigious location.
Mr. Aboagye offered practical advice for individuals who may be struggling with the high cost of living.
“So if you know that you cannot buy Waakye from East Legon, or obviously, it will be expensive, why don’t you look out for an option that, for me, you’ll be able to cover with your salary?”
Mr. Mark Badu Aboagye Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNC
Mr. Mark Badu Aboagye Chief Executive Officer of the Ghana National Chamber of Commerce and Industry GNC
This advice pointed to a broader solution for dealing with the high cost of living: consumers need to be mindful of the locational effect and seek out more affordable alternatives that align with their financial capabilities.
Mr. Aboagye’s insights provided a comprehensive view of the cost of living in Accra, with particular emphasis on the impact of location on prices. Whether it’s accommodation, food, or real estate, the “locational effect” plays a significant role in determining the cost of goods and services.
His remarks encourage Ghanaians to make informed decisions based on their financial situation, especially in a city where the cost of living can vary so widely from one area to another.
READ ALSO; Lady Gaga Confirms When LG7 Album Will Be Released
