New data from the COVID-19 Business Tracker survey results have revealed businesses in Ghana continue to recover from the shocks caused by the pandemic.
The Third Wave identified multiple recovery pathways such as sales, access to inputs, finance, employment, compared to the 2020 second round data (Wave II).
This was disclosed in a joint statement by the World Bank, the Ghana Statistical Service (GSS) and the United Nations Development Programme (UNDP) to the media last Thursday.
The statement however indicated that the key findings from the third round (Wave III) data show a considerable decline in the rate of reduction in hours worked, wage reduction and leave without pay over the three data collection periods in 2020-2021 (Waves I – III).
“The findings from the Third Wave of the COVID-19 Business Tracker indicate that the government stimulus impacted positively on firm’s sales with an increase of 11.5 per cent. This positive effect was evident among small businesses as their sales increased by 22 per cent”, Prof. Samuel Kobina Annim, the Government Statistician noted.
The Wave III Business Tracker also shows the rising use of mobile money among firms for sales. Data compared to Waves I and II, reveal almost 7 out of 10 firms are now using mobile money to do business, with mobile money usage increasing from 35.7% and 53.4% (Waves I and II respectively) to 69.6% (Wave III). Similarly, more businesses are adopting the use of the internet for sales.
“We need to reimagine development in the digital age. It is encouraging to see more firms embracing digitalization as a default to improve business. UNDP remains committed to supporting Government’s digital agenda and recovery efforts to accelerate the attainment of the Sustainable Development Goals (SDGs)”, Angela Lusigi, UNDP Resident Representative in Ghana stated.
Angela Lusigi called for reimaging development in the digital age.
“It is encouraging to see more firms embracing digitalization as a default to improve business. UNDP remains committed to supporting Government’s digital agenda and recovery efforts to accelerate the attainment of the Sustainable Development Goals (SDGs)”, she stated.
The Wave I data also show an increase in the reopening of previously fully closed firms.
Out of 30,654 firms that were previously closed in the Wave II results, almost half are fully opened (15,174) in Wave III.
But close to half (14,162) are still closed, suggesting more support to help all businesses fully bounce back.
The top three policies that support the firms’ desire to become resilient are loans with subsidized interest, cash transfer and access to new credit.
World Bank Country Director for Ghana, Liberia and Sierra Leone, Pierre Laporte, noted the improvements recorded over the periods is remarkable but there is the need to pay attention to the policy supports required by the firms.
“The World Bank will continue to support the Government of Ghana in its efforts towards the country’s economic recovery,” he assured.
The COVID-19 Business Tracker is a collaboration between the Statistical Service, UNDP and the World Bank, which aims at providing critical information to help the Government of Ghana, development partners and other organizations monitor the effects of COVID-19 on businesses.
The overall objective of the survey is to track the socioeconomic impacts, measures to mitigate this impact, and efforts to build better recovery for the people of Ghana.
