Quarter 1, 2020 Business Condition Report Virtual Launch STCCI - - PowerPoint PPT Presentation

Business Condition Report

STCCI Conference Room 2pm

Quarter 1, 2020 Virtual Launch

Benjamin Nii Kpani Addy

GENERAL OVERVIEW

• Introduction
• Objectives Of The Survey
• Survey Instrument (Background Questions, Survey Questions)
• Survey Charts
• Recommendations

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INTRODUCTION

• About STCCI
• BCR (Quarter 1, 2020)
• 11th April/ 6th May
• 101 participants
• The survey was conducted around 8 sectors
• Takoradi, Sekondi, Shama, Anyinase, Essikado, Apowa & Agona Nkwanta.

OBJECTIVE OF THE BCR SURVEY

• To unearth challenges of businesses in the region
• Advocacy topics for the chamber
• Aid businesses in the region make informed decisions
• Data for comparative study
• Issues to address during the chamber’s technical meeting
• Hub for economic information

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BACKGROUND QUESTIONS

1. Type of Industry 2. Duration of Business 3. Location of business 4. Legal for of the business 5. Number of employees 6. Gender of majority shareholder(s) 7. Importer or Exporter 8. Estimated annual turnover in thousands of Ghana Cedis 9. Net Profit Margin of the industry

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SURVEY QUESTIONS

1. Level of employment during the quarter 2. Factors limiting business activities during the quarter 3. Level of investments compared to the previous quarter 4. Main reasons for business investments 5. Impact of depreciation/appreciation of the Cedi on business 6. Impact of the coronavirus pandemic on business 7. Assessment of current business situation by businesses 8. Expectation of business situation on companies during the quarter

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LEVEL OF EMPLOYMENT

7

• 64.4% unchanged due to

high cost of labor

• 14.9% increase due to

increase demand

• 20.8% decrease led to lay
• ff of stuff due to low

turnout of activities

FACTORS LIMITING BUSINESS ACTIVITIES

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• Domestic demand surging

pass financing condition as the single most inhibiting factor for the first time in 14 quarters

• Financing conditions due

to high interest rates on loans and limited access to funding.

• Competition in sector –

lead to reduction in turnovers and margins.

LEVEL OF INVESTMNET

9

1

Investment in businesses has its benefits. However almost 40% reducing

• investment. Is it because
• f uncertainty about

corona? Only 13% dared to invest perhaps because they want to reap the benefits of investment that include value addition to products and services, reduction in cost through application of efficient processes.

MAIN REASONS FOR INVESTMENT

• Capacity extension: which

refers to training and development of staff, due to increase of demand, to improve staff productivity.

• Efficiency measure: to

meet customer requirements and standards at a low cost.

• Product innovation: to

make products more appealing to customers and beat competition in the sector.

IMPACT OF DEPRECIATION/APPRECIATION OF THE CEDI

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• Cedi had a checkered 1st quarter.

Depreciated by 6% in January, appreciated by 7.8% in February and depreciated by about same margin in

• March. Net effect a depreciation of

6%.

• Negative due to increase in prices of

raw materials imported

• No impact: they don’t trade directly

with the foreign market.

• Positive due to increase in cedi value
• f their turnover which were quoted in

foreign currency. (Exporters).

7% 44%

NO IMPACT

NEGATIVE POSITIVE

49%

IMPACT OF THE CORONAVIRUS PANDEMIC ON THE BUSINESS

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• Positive due because

demand was high because of stocking of goods because of the fear

• f lockdown due to the

coronavirus.

• No impact because they

did not see any adverse effect on their activities.

• Negative due to reduction

in demand as a result of the lockdown and social distancing protocols NO IMPACT NEGATIVE POSITIVE 89% 5% 6%

ASSESSMENT OF CURRENT BUSINESS SITUATION

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• 32% - Satisfactory. Even

though sales were low they achieved average profitability.

• 58% - Bad. Due to current

pandemic situation in the country; high prices of raw materials, import taxes coupled with low demand for goods other than food and food items.

• 10% - Good. Due to good

management of personnel.

10% 32% 58%

Good Satisfactory Bad

EXPECTATION OF BUSINESS CONDITION IN NEXT QUARTER

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• Better responses

attributable to decrease in uncertainty surrounding the coronavirus pandemic

• About Equal respondents

do not see anything changing significantly due to the coronavirus.

• Worse respondents

anticipating a worse case scenario as far as the coronavirus pandemic is concerned.

RECOMMENDATION

• We strongly recommend that the government should improve it’s enforcement of

measures aimed at fighting the Covid-19.

• The security forces must be provide with the needed personal protective

equipment (PPEs) and re-oriented on humanitarian approach to enforcing the directives.

• We call on the general citizens of Ghana to strictly adherence to the measures put

in place for the fight against the COVID-19 pandemic.

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RECOMMENDATION Cont’d

• The government in this unfriendly times, should make headway by helping

businesses in every effort appropriate and needed.

• This include but not limited to financial aid to assist businesses rise to their

previous performance levels

• r

better. The Coronavirus Alleviation Programme (CAP) Business Support Scheme (BuSS) is timely indeed.

• We encourage and strongly recommend that Ghanaian entrepreneurs step up

to produce most of products we use to import locally.

• we urge the citizenry to patronize the locally manufactured products.

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Conclusion

• “We are not in normal times”. This quote resonates with us when we consider

the difficulties we had to go through to undertake this survey.

• This is the first time we have undertaken this survey entirely digitally and it

has brought to the fore, various challenges that businesses have in operating in the digital space as well as our preparedness as a Chamber to undertake such virtual studies too.

• We are however happy that the challenges notwithstanding, we have been

able to come out with this report and we can maintain the consistency with which we undertake these surveys. We have learnt from our experience and expect the second quarter survey to be better.

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Conclusion Cont’d

• We believe that as a stakeholder, you find our attempt to present this reliable

and accurate information useful and will consider some or all of the information contained in this report when taking decisions or actions for with such information will be helpful.

• We have always done this with the invaluable support of Sequa and the

German Ministry of Economic Cooperation and Development through HKH (Hamburg Chamber of Commerce). We say a very big thank you to for your continuous support.

• We also want to appreciate the captains of businesses who devoted time of

their busy schedules to provide us the input which has formed the basis for this report.

• Please remember to observe all the Covid-19 protocols, stay safe and alive

and we hope to be able to share our second quarter report with you.

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PARTNERS

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THANK YOU

2 www.sekonditakoradichamber.org research@sekoonditakoradichamber.org +233 50 167 8140 27 St Francis Street, Anaji, Takoradi.