Demurrage is a disservice to business people – Spare parts dealers

The Abossey Okai Spare Parts Dealers Association, the umbrella body for spare parts dealers in the Greater Accra Region, has expressed discontent with demurrage charges at the ports, labelling them as detrimental to businesses in the country.

The demurrage charges are the result of the high cost of goods and services in the country, the Association noted.

According to the Association, demurrage charges have been a major factor in the rapid collapse of businesses, particularly in the Abossey Okai spare parts dealership area among others.

During an interview on The Citizen’s Show hosted by Nana Bobie Ansah on Accra 100.5 FM on Thursday, January 18, 2024, Mr Takyi Addo, the Head of Communications for the Association, voiced concerns about how demurrage charges have adversely affected local businesses.

He emphasised that these charges have led to the total collapse of many businesses in the spare parts sector, causing individuals to lose their capital.

Mr Addo pointed out that demurrage charges have been exploited by some political actors to exploit innocent businesspeople in the country.

He added that when the goods go to demurrage these political actors get their cronies to buy the goods on their behalf.

He stated that numerous business ventures have folded because owners were unable to pay demurrage charges, resulting in the auctioning of their goods.

The Association supports the National Democratic Congress's (NDC) manifesto promise to introduce a policy of giving importers the opportunity to find buyers for their goods when they face demurrage.

Mr Addo believes that this policy, if implemented, would be beneficial for businesspeople.

Expressing further concerns, he questioned why dollar rates at the ports are reviewed every Tuesday when the Association, in collaboration with the Ghana Union of Traders Association, has appealed for the rate to be reviewed quarterly instead of weekly.