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The Kumasi Spare Parts Dealers’ Association has made a passionate appeal to the newly-elected John Mahama administration to take swift action in addressing the challenges threatening their survival.
According to the association’s chairman, Mr. Godfred Adu Kofi, businesses in the spare parts industry are struggling under the weight of fluctuating import duties, high-interest loans, and excessive taxes. He urged the government to fulfill its campaign promises of introducing fixed import rates, ensuring access to low-interest loans, and scrapping what he described as “obnoxious taxes” that stifle business growth.
Speaking in an interview with the media, Mr. Adu Kofi painted a bleak picture of the current state of the industry, warning that many dealers are on the verge of collapse due to the unfavorable business climate.
“Our businesses are barely surviving. The fluctuating import rates make it impossible for us to plan effectively. We need a fixed import rate that will bring stability and allow us to operate without fear of sudden financial shocks,” he said.
He further explained that the high cost of borrowing from financial institutions is another major hurdle for spare parts dealers. Many banks, he noted, offer loans at prohibitive interest rates with short repayment durations, making it nearly impossible for traders to expand or sustain their operations.
“Access to affordable credit is critical for us. Unfortunately, the high-interest loans available now are a burden rather than a solution. We are appealing to the government to work with financial institutions to provide low-interest loans with favorable repayment terms,” he added.
The chairman also criticized the current tax regime, which he believes discourages growth and innovation in the industry. He called on the government to immediately abolish the excessive taxes, which he described as counterproductive.
“These taxes are a major disincentive to doing business. They add to our costs and reduce our ability to compete. If the government truly wants to support local businesses, then these nuisance taxes must go,” he stated.
Mr. Adu Kofi warned that unless the government acts swiftly, the spare parts industry could face a total collapse, leading to widespread unemployment and economic hardship.
“The spare parts industry is a critical sector that provides employment and supports the livelihoods of thousands of Ghanaians. If our businesses fail, the ripple effects on the economy and society will be devastating. The government must act now to save this industry,” he emphasized.
The Kumasi Spare Parts Dealers’ Association remains hopeful that President Mahama’s administration will honor its promises to create a more favorable business environment. The association has called for urgent dialogue with relevant government agencies to address their concerns and ensure the survival of the spare parts industry.
With the sector playing a key role in Ghana’s economic development, the association believes that addressing these challenges will not only secure their future but also contribute to the overall growth of the nation’s economy.
