The cost of renting a space for business operations has become a burden for entrepreneurs and startups as they succumb to financial challenges.
The situation has become more difficult for some businesses as prices for renting are pegged in dollars, further escalating the cost they pay owing to the depreciation of the Ghana Cedi
From Makola to Osu, Airport City, and East Legon, entrepreneurs, startups, and established companies seek the perfect office or business space, however, soaring rental costs pose a significant challenge.
Maxwell Kwame Adu, Manager of Good Me Tea House in Osu, secured his current workspace at a hefty $2,000 per month.
He lamented that prices quoted in dollars add to his woes, despite struggling to attract patronage in his first month.
“Assuming I pay less than 2000 dollars, it would have helped me to promote my place because I’ll be doing marketing and for people to get to know the place, but because of the 2000 dollars plus, it has really made a difference because I have just two workers here and it’s not easy
Stephen Baah, a shop attendant at 5G Technologies in Osu, shares similar concerns about dollarization’s impact on rent.
” We must say the cedis is not stable, goes up and down. So if the cedi goes up, it means your rent shoots up so if you pay this amount, you have to pay times two.”
Property owners in prime areas like Osu and Airport City capitalize on the demand, charging exorbitant prices. Some operators have begun charging in dollars due to the local currency’s depreciation.
At SSNIT Emporium, Haps Global Logistics pay GHC200 per square meter per month for their 40-square-meter office space, accounting for 30% of their revenue.
In East Legon, startups can expect to pay up to $40 per square meter. Amidst soaring costs, Cosmos Owusu Agyei, managing partner of SPH Properties, notes the increasing trend of entrepreneurs opting for co-working spaces.
However, he warns that property owners may need to raise costs due to escalating building material prices and Ghana’s economic situation.
“It could say things may go up a little but not drastic because the dollar is taking care of whatever inflation people are experiencing”
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