The Ghana Statistical Service (GSS), in collaboration with the United Nations Development Programme (UNDP) and the World Bank, reported that nearly 85,000 businesses in Ghana remained closed due to the Covid-19 pandemic, according to the Covid-19 Business Tracker Survey conducted from May 26 to June 17, 2020. Over two-thirds of these were micro-sized firms, highlighting the vulnerability of small enterprises.
Job Losses and Wage Cuts
Professor Samuel Annim, Government Statistician, announced that over 45,000 workers lost jobs, and more than 770,000 had wages reduced during the partial lockdown.
The accommodation and food sub-sector saw the steepest decline, with a 57% drop in activity. Approximately 46.1% of firms cut wages for 25.7% of their workforce, while 4% laid off an estimated 41,952 workers.
Limited Digital Adoption
Only 9% of firms increased internet use for operations, and 37.5% adopted or expanded mobile money usage. The survey noted that less than 10% of businesses intensified digital solutions, indicating a slow shift to digital platforms amid the crisis.
Financial Challenges and Policy Needs
Around 131,000 businesses reported difficulties accessing finance, with over 60% requesting subsidized interest rates. The survey highlighted a lack of awareness, with only 3.5% of firms accessing government assistance, such as the GH¢600 million Stimulus Package. Businesses expressed uncertainty, anticipating a 24% sales decline and 15% employment drop in worst-case scenarios.
Call for Support
The findings underscore the need for short-term policies to address financial shocks, including credit guarantees and tax deferrals, to support firms’ liquidity.
Annim emphasized that re-establishing disrupted supply chains and boosting digital adoption could enhance resilience, aligning with global trends observed in the World Bank’s Business Pulse Survey across over 40 countries.
