GH¢600m stimulus confusing; explain intended targets – GUTA to govt

The government must provide clarity relative to the targeted businesses for the GH¢600million stimulus package earmarked to support businesses in Ghana following the impact of the COVID-19, the Ghana Union of Traders Associations (GUTA), has said.

The Association said in a statement that their numbers are huge, therefore it is required of government to explain distribution plan and further details to help them decide.

In a statement issued by the Association, its President, Dr. Joseph Obeng, said “We wish to bring to the attention of the government that the stimulus package being presented to us is very confusing. It does not state the intended target, threshold, adequacy of the fund and modalities of disbursement.”

“This due to the huge number of people in the sector, and the varied nature of the operations, as well as the capital needed for the members of each group. We expect that each group will be identified and allotted the appropriate amount,” the statement added.

GUTA added that “It should be noted that the Chief Executive Officer of the National Board for Small Scale Industry stated that she expects about 200,000 businesses to access this fund, which therefore will strike as an average threshold of GH¢3,000 per a beneficiary, which is grossly inadequate”.

The association further indicated the shortfall of the NBSSI of disclosing the modalities and specific target group for disbursement, as well as the threshold and interest rate involved.

Continuing, it said the stimulus package announced by President Akufo-Addo for the MSMEs will become more of a problem than a solution if the government fails to establish a committee of stakeholders to effectively managed the fund to achieve its intended purposes.

“It is important to alert government that the announcement of the stimulus package has generated a lot of interest and expectations among greater majority of the business community, so government should consider this fact, engage with us, to think through the entire package. Otherwise this noble and good intention of the government can be more of a problem than a solution”, it said in a statement.

It, however, commended the government for considering the plight of the informal trading sector and the small-scale industries in the wake of COVID-19 pandemic, which has brought hardship on members of the business community.