Ghana’s banking sector reforms has been listed as a key factor in low sales at the country’s largest producer and retailer of consumer goods, Unilever Ghana.

In an email seen by JoyNews, Unilever Ghana Limited disclosed, “many distributors finding it increasingly difficult trading.”

The email noted the “economic climate in Ghana has seen a slow-down especially in trading conditions particularly after the banking sector reforms which began in Q4 2018.”

The reforms began in August 2017 when the Bank of Ghana revoked the licences of two banks. A year later, five more banks collapsed.

The central bank moved to the microfinance sector in May 2019, revoking the licences of 386 companies which it said were insolvent.

It announced an end to the clean-up after it closed 23 savings and loans companies and finance houses in August 2019.

Unilever Ghana also noted the business is experiencing “a more subdued consumer demand”.

Thousands have lost their jobs in the banking sector reforms. At least 1,698 lost their jobs at five banks, government said in 2018.

Unilever said the subdued consumer demand together with the reforms has seen the company’s distributors posting “unusually high inventory levels.”

The company said it was bracing for a “considerably lower than planned” turnover in its outlook for the rest of 2019. 

In reaction, UGL said it has decided to “reset the levels of stock held by distributors over the coming months.”