[ 2021-03-17 ]

More investments recorded in Western Region despite COVID-19
A series of studies conducted by the Research
Department of the Sekondi-Takoradi Chamber of
Commerce and Industry (STCCI) reveal that capital
injection in businesses shot up by two per cent in
the fourth quarter of 2020 in the Western Region.





Comparatively 70 per cent of businesses maintained
the same level of investment in their operations
in the fourth quarter of 2020 while the third
quarter recorded about 41 per cent of businesses
maintaining the same quantum of investment.

This was in the Business Condition Report launched
by the STCCI.

Mr Benjamin Nii Kpani Addy, the Deputy Chief
Executive Officer for STCCI, said capacity
extension, need for efficiency in operations and
replacement demand had been the topmost
considerations for businesses over the past two
quarters.

In the third quarter of 2020, about 39.9 per cent
of the investments made by businesses were into
capacity extension, 18.2 per cent to replenish
stock, and 16.2 per cent targeted enhancing
efficiency of business activities.

Meanwhile most of the investment in the fourth
quarter were largely in respect of increasing
efficiency in satisfying customer requirement
(38.3 per cent), and 26.7 per cent aimed at
replenishing stock.

Mr Addy said due to the advocacy made overtime
about the need to increase investments in
safeguarding the environment, businesses increased
their investment from 1.7 per cent in the third
quarter to 8.4 per cent in the fourth quarter of
2020.

He prayed that that would be sustained and
possibly increased to respond to climate change
issues.

The COVID-19 Impact on Businesses from the survey
established an adverse effect on businesses in the
third quarter, recording 65.3 per cent but
increased to 67.1 per cent for the fourth
quarter.

The cost of operations recorded 20.4 per cent
increase in the third quarter and 18.2 per cent in
the fourth quarter.

However, some businesses made gains mainly through
compelling business innovations, with about 2.9
per cent of the respondents saying the pandemic
brought about some innovation in their work.

Financial constraints, spiking price of raw
materials and energy cost, domestic demand and
COVID-19 were among several factors that impacted
performance of businesses in the two quarters
under review.

Mr Addy said irrespective of the challenges, about
77 per cent of businesses anticipated a brighter
future in 2021.

The STCCI introduced the business condition survey
in 2016 to gather empirical data to support the
Chamber’s advocacy interventions.

It used Computer-Assisted Personal interviewing
technique to collect information on the
performance of businesses.

Source - GNA

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