Post-election uncertainty and economic pressures impact Christmas shopping in Accra

The festive season is in full swing as Ghanaians flock to markets in Accra to prepare for Christmas celebrations. However, the usual excitement of yuletide shopping is tinged with concerns over economic factors, including post-election uncertainty and the fluctuating dollar rate.

Traders in the Accra business district report mixed fortunes, with consumer spending patterns influenced by economic pressures and the broader political climate.

Following the recent elections, many Ghanaians are cautiously optimistic about the economy. However, traders and consumers alike are feeling the impact of uncertainty in the financial markets. While the dollar-to-cedi exchange rate has shown signs of stabilization, the lingering effects of depreciation earlier in the year have left a mark on the prices of goods and services.

The Ghana Times team took a stroll in the Central Business District to assess how the exchange of goods and services as well as business transactions were ongoing.

“Prices have gone up compared to last year. Even though the dollar rate has dropped a bit, the wholesale prices are still high,” said Maame Aikins, a clothing vendor at Makola Market.

“We are not seeing the kind of sales we used to have around Christmas. People are buying, but cautiously,” she added.

Many shoppers are adjusting their budgets to accommodate the rising costs. Traders selling foodstuffs and festive ingredients report brisk business, but buyers are making strategic choices to stretch their spending.

“Tomatoes, rice, and cooking oil are all more expensive,” said Melissa Anane, a shopper who had come to stock up for Christmas cooking. “I had to cut back on other items to afford the basics for my family dinner.”

On a good day, one could get a bag of rice (5kg bag) at a range of GH¢80 – GH¢100, cooking oil (1 litre) at GH¢30 – GH¢35, tomatoes (medium-sized bowl) at GH¢25 – GH¢30, onions (medium-sized bowl) for GH¢20 – GH¢25 and chicken (frozen, per kilogram) at GH¢50 – GH¢60.

Others, however, are prioritizing smaller luxury purchases to mark the festivities. “Christmas is once a year, so I’ll buy what I can afford,” Edward is a high school teacher and he tells The High Street Journal he is on a low budget this season.

While some traders benefit from the seasonal demand, others struggle to match pre-Christmas expectations. Vendors selling non-essential items like fashion accessories and electronics report slower sales.

On the flip side, food vendors and sellers of children’s clothing report higher sales. Festive goods like Christmas lights and decorations are also in demand, though buyers are negotiating heavily for discounts.

The dollar’s earlier surge left many traders grappling with higher import costs, which they have had to pass on to consumers.

Despite the dollar’s recent stability, traders say the effects of earlier price hikes are yet to abate.

“Many of our suppliers priced their goods when the dollar was high, and we are still clearing that stock,” explained Nana Akosua, a trader in household goods. “If the dollar stays stable, maybe next year prices will reflect that.” She chipped.

As the Christmas season progresses, traders are calling on policymakers to create an enabling environment that fosters economic stability.

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For now, Ghanaians are doing their best to celebrate the season, balancing economic constraints with their determination to enjoy the yuletide spirit. The bustling markets of Accra demonstrate the resilience of traders and consumers alike, even amid economic challenges.