Business

During the lockdown, 9.1% of agribusinesses were forced to close their doors, according to a report.

During the temporary shutdowns in the nation last year, 9.1 percent of agricultural producers were reportedly closed down, with another 30.7 percent, or 42,396 agribusiness forms, being closed down.

The lockdown was directly responsible for 20.9 percent of them.

In addition, an estimated 16,091 agribusinesses, or 11.6 percent of those closed due to the pandemic, stayed closed after the lockdown was lifted.

The Ghana News Agency discovered this in the Ghana Statistical Service’s Summary Report on the Impact of COVID-19 on Agribusinesses in Ghana, dated June 2021.

The German Ministry for Economic Cooperation and Development (BMZ) sponsored it, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Gmblt implemented it in collaboration with the United Nations Development Programme (UNDP).

The study used telephone interviews to gather data from 8,000 agribusinesses across the country on inputs and revenue by source, labor by sex and category of workers, social security and tax payments, labor layoffs, wages by category of workers, financial inflows, access to credit, and modes of market access, according to the report.

According to the report, the purpose of the study was to provide detailed advice to the government and other stakeholders.
The survey’s other goals, according to the report, were to look into the regional lockdown impact in the context of global and regional economies on turnover, labor force, purchasing power, demand and supply of products and services in the agricultural channel.

It was important to provide a critical examination of the response mechanism of agribusiness strategies and the assistance received from the local government.

The purpose of the survey, according to the report, was to identify contingency mechanisms and strategies that proved effective for agribusiness during the pandemic, as well as what would be done differently in the future, compare the pandemic’s relative impact on agribusiness, and assess its impact.

According to the paper, the pandemic impacted various economic sectors, including agribusiness, which had a significant role in the economy.

It went on to say that the pandemic’s consequences on businesses included employment losses, lower outputs, and demand-supply shocks.

According to the report, the lockdown had an impact on not just the closure of agriculture enterprises, but also on employment levels, with the number of agribusiness workers laid off rising from 51,111 during the lockdown to 78,412 in the post-lockdown period.

Firms cut off 44.7 percent of the overall workforce in the agricultural industry sector as a result of the lockout, resulting in the layoff of 22,873 workers and a wage cut for 63,167 people, according to the report.
According to the report, Covid-19 caused demand and supply disruptions for the country’s agriculture industries.

Agribusiness firms in the country implemented internal measures to mitigate the impact of the pandemic, according to the report, including diversification of supplies, increased adoption of digital technology to market their goods and services, and the use of mobile money and courier services, in addition to employment and wages and management measures.

It was discovered that 5.1% of all agriculture enterprises had adopted or increased their use of the internet in their operations.

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