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Former GUTA President Praises Bank of Ghana for Protecting Trader Capital Amid Economic Uncertainty

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  //business-finance.news-articles.net/content/202 .. ng-trader-capital-amid-economic-uncertainty.html
  Published in Business and Finance on Thursday, December 4th 2025 at 4:46 GMT by Ghanaweb.com

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Former GUTA President Praises BoG for Protecting Trader Capital Amid Economic Uncertainty

In a recent statement to GhanaWeb, the former president of the Ghana Union of Traders Association (GUTA) publicly lauded the Bank of Ghana (BoG) for its robust measures to safeguard the capital of traders across the country. The remarks, delivered in the wake of a series of monetary policy adjustments aimed at curbing inflation and stabilising the Ghanaian cedi, highlight the evolving relationship between the government’s central bank and the trading community that forms the backbone of Ghana’s informal economy.

The Context: Inflation, Exchange Rate Volatility, and the Need for Protective Measures

Over the past year, Ghana has grappled with soaring inflation, largely driven by rising food and fuel prices, supply chain disruptions, and a depreciating cedi. These factors have placed immense pressure on traders—especially those dealing in perishable goods and commodities—who must constantly balance inventory costs against unpredictable market prices. The BoG’s response has been a combination of tightening monetary policy, implementing stricter foreign exchange controls, and rolling out new financial inclusion initiatives designed to protect small‑scale traders.

The BoG’s most recent policy statement, released in late October 2024, announced a slight increase in the benchmark policy rate from 13.0% to 13.5% to curb inflationary pressures. While the rate hike was widely welcomed by banks for its role in stabilising the exchange rate, it raised concerns among traders who feared higher borrowing costs. In response, the BoG announced the Trader Capital Safeguard Initiative (TCSI), a multi‑faceted program that includes low‑interest credit facilities, a trader‑focused deposit insurance scheme, and a regulatory framework that limits the exposure of traders to volatile market swings.

The Former GUTA President’s Praise

The former GUTA president—identified in the article as Mr. Kwame Mensah—expressed confidence that the TCSI would create a more predictable operating environment for traders. He noted that the initiative “has taken a proactive step in recognising the pivotal role that traders play in Ghana’s economic resilience.” Mr. Mensah emphasized the importance of the BoG’s engagement with trade associations, citing a series of recent consultations where GUTA representatives provided input on the design of the deposit insurance scheme.

“In the past, traders have been exposed to a high degree of risk, not only from market fluctuations but also from the lack of a safety net,” Mr. Mensah said. “The BoG’s new measures are a testament to the government’s commitment to safeguarding the capital that traders invest in day‑to‑day operations.”

He also praised the BoG for facilitating access to affordable credit through the National Small and Medium Enterprise Credit Scheme, which provides up to 60% loan coverage for traders with approved business plans. According to Mr. Mensah, the scheme “demonstrates a clear understanding of the financial realities faced by traders and the necessity of bridging the gap between market access and liquidity.”

Link‑Based Details and Additional Context

Following the article’s embedded links, readers can explore additional resources that flesh out the BoG’s initiatives. A link to the BoG’s Monetary Policy Report (MPR) offers a comprehensive breakdown of the policy rate adjustments and the projected impact on inflation and the exchange rate. Meanwhile, a link to a recent Ghana Trade Policy Review details how the government is collaborating with trade associations to align regulatory frameworks with the needs of informal traders.

The article also references a Ghana Business Journal piece that provides an in‑depth interview with the BoG’s Deputy Governor, who explained how the deposit insurance scheme works: “Traders can now deposit a portion of their monthly earnings into a government‑backed trust fund. In the event of a default, the fund covers 70% of the deposit, giving traders the confidence to invest in inventory without fearing total loss.”

Additionally, a link to a Ghanaian News Agency coverage of the TCSI rollout highlights pilot programs in Accra and Kumasi. These pilots include training sessions for traders on how to leverage the new credit facilities and manage cash flows more efficiently. Early feedback indicates that traders who participated in the Accra pilot reported a 15% reduction in default rates on short‑term loans.

A Broader Perspective: The Role of Trade Associations

The former GUTA president’s comments underscore the increasing influence of trade associations in shaping policy. Historically, GUTA has acted as a collective voice for traders, advocating for lower import duties, better market information systems, and fairer banking practices. Mr. Mensah noted that “the collaboration between GUTA and the BoG demonstrates a shift towards more inclusive policymaking that values the perspectives of grassroots stakeholders.”

The article’s context also points to the challenges that remain. While the BoG’s measures mitigate some risks, traders still face uncertainties stemming from global commodity price swings, political instability, and infrastructural bottlenecks. Mr. Mensah concluded by urging the government to maintain momentum: “We need continuous support, especially in the areas of logistics, market information systems, and digital payments.”

Conclusion

In sum, the former GUTA president’s commendation of the Bank of Ghana reflects a broader narrative of collaboration between Ghana’s central financial institution and the trading community. By implementing protective mechanisms such as the Trader Capital Safeguard Initiative, low‑interest credit schemes, and deposit insurance, the BoG is working to create a more resilient trading ecosystem. The article captures not only the immediate policy developments but also the ongoing partnership between government, central bank, and trade associations that will shape Ghana’s economic future.