Over 50 shops in the Abossey Okai Spare Parts Market have closed due to loan default.
Some shop owners blamed the situation on the high cost of doing business in the country, which was caused by high inflation and volatility in the exchange rate regime earlier this year.
They also cited high port taxes as a factor in their loan default.
“A lot of traders go for loans to import goods to the market. Due to the high cost of port duties and the unstable exchange rate regime, we are compelled to increase prices but in the end, customers don’t buy and we lose”, a trader who gave her name as Kwame said.
Kwame claims that many of her colleagues are forced to leave the country in search of better opportunities to repay their loans.
“It is not an easy task, my brother. Many people are leaving the country in search of better living conditions. Why operate a shop here when you can’t break even?”
Kwame expressed his dissatisfaction with the country’s current economic situation and stated that he will leave for Dubai to work as a carpenter.
“Listen! We have no business to attend to. We only have what we do here. Look at the stores; they’re all closed and have no spare parts. Do you understand why? They have all travelled because the banks are pursuing them for repayment of loans that they are unable to repay.
“The only option now is to travel abroad, get some monies, and pay your debt. I doubt you’ll run into me here on your next visit. “I’m going to Dubai to make money as well,” he added.
