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Cost of doing business in Ghana to go high – Economist

Prof. Peter Quartey, who is an economist believes the recent increase in transport fares will in the coming days increase the cost of doing business in the country.

The 15% increment in transport fares takes effect Saturday, July 11.

Prof. Quartey who was speaking in a radio interview monitored by saltfmonline said inflation will be affected and the cost of raw materials will also be affected.

“Prices of goods will be affected once transport fares go up, cargo truck and passenger fares will go up. Cost will definitely go up and that can be passed to us, your cost of living will be affected so that generally will have some repercussions on the economy, Yes it will affect inflation, the cost of doing business will go up even raw materials we get from the rural areas…”

Transport Consultant Cecil Garbrah has also justified the 15% increment of transport fares in the country.

He explained that further increment as requested by some commercial drivers will cripple the economy.

According to Cecil Garbrah, most economic activities in the country are dependent on this.

“40% cannot be possible honestly speaking it ground every economic activity in the country, I say so because goods and services transported in this country are all being done by road, therefore, if we are travelling by road and we want an increment like that it will mean a standstill. Vehicle owners will have to manage for now as salaries have not been increased anywhere and many workers are rather being laid off as a result of the virus.”

Deputy Transport Minister, Titus Glover yesterday announced that transport fares will from Saturday, July 11, 2020, be increased by 15%.

According to the deputy minister, the decision was arrived at after meetings with the the driver unions and in acknowledgement of the impact the Covid-19 pandemic has had on drivers.

“The increase cuts across board that is taxis, trotros, long distance vehicles and cargo trucks. It takes effect from Saturday, July 11, 2020,” Mr Glover said.

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