Fire disasters and their impact on GDP growth

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By Amos SAFO

Between January and March this year, our economy has witnessed three major fire outbreaks, which have destroyed shops and goods estimated to cost billions of cedis.

Early in January 2025, the Kantamanto market in Accra was razed by fire, which was believed to have been intentionally caused by some political actors.

The market, which is located at the heart of the Accra business centre has been described as the biggest second-hand clothes market in West Africa. Many of the shops at the market are owned by small-scale proprietors, mostly women who depend solely on their retail business as a source of livelihood.

Similarly, in February, there were reports of another fire outbreak at the Kwadaso market in Kumasi. Like the fire at Kantamanto, the Kwadaso fire also destroyed shops and properties running into millions of cedis.

It was expected that these two devastating fires would have alerted our political authorities to put pragmatic measures in place to stop further outbreaks. Sadly, but quite expectedly, our leaders and technocrats never learn from past mistakes. Once elected to office, it becomes business as usual until the next elections, when new promises are packaged to woo undiscerning voters.

It came as no surprise when another fire consumed several shops and goods at the Adum market in Kumasi in the middle of March 2025.  Like the Katamanto and Kwadaso fires, the Adum market fire consumed more than 2000 shops belonging to retailers and wholesalers, many of whom are women.

Though no independent investigations have been undertaken to quantify the amount of goods and money lost in the three fires, the impact of such losses on the individuals and their households could be enormous.

Causes of the fire

In a statement in Parliament shortly after the fire at Adum, the MP for Subin, Hon.   Eugene Boakye Antwi confirmed the fear of many Ghanaians that the frequent power outages triggered the fire at the market.

Between 2012 and 2016 regular power outages across the country gave birth to a new term, “Dum Sor”, which has been incorporated into the Oxford English Dictionary. The resurgence of Dum sor in Ghana’s political discourse signaled President John Mahama’s second tenure on January 7, 2025, following a landslide victory.

Many Ghanaians had expected Dum Sor would never recur after electoral promises to sustain electricity generation and supply.

The MP for Subin stated that the fire had consumed the lifetime investments of the traders beyond redemption.

Mr Boakye Antwi cited the Fire Service as describing the fire at Adum as the worst ever witnessed in Ghana in recent memory. According to the MP, more than 2,000 shops and goods were consumed by the fire. “During my interaction with the affected traders and eyewitnesses, it was revealed that Dum Sor triggered the fire”, the MP said.

He stressed that the power had been off for several hours before the fire; and as soon as it was restored, it triggered the fire. “This is most unfortunate, given how far we have come as a nation.”

Fire and GDP

The economic impact of such losses, in terms of contribution to Gross Domestic Product, is incalculable. Fire outbreaks in Ghana have significant economic impacts, including property damage, loss of livelihoods, disrupted business operations, and reduced government revenue, potentially affecting the country’s GDP.

In many economies, including the developed countries, the contribution of medium and small businesses to economic and social growth has been well documented. For this reason, any fire that destroys a market in any part of the country has dire consequences for economic growth.

Fire disasters often destroy and erode the development gains of people, businesses and economies. At the macro level, disasters affect development through physical damage to infrastructure and productive capital, which may impact productivity and growth in the long term.

Furthermore, disasters also create chaos and cause loss of working capital, sales, assets and profitability at the micro level. Not only do the traders pay taxes to the state, but they also employ other Ghanaians. Furthermore, many of the traders are the breadwinners of their families, so the destruction of their sources of income will hurt their families or dependents.

Fire Service efforts

Several bloggers and citizen journalists at the scene narrated the challenges the personnel of the National Fire Service encountered when they tried to douse the fire.

The reports indicated that Fire Service staff lacked enough fire fighting vehicles and other necessary equipment at the site to combat the fire. Moreover, they had little access to water, an essential component for fighting fire.

Over the years, the National Fire Service has battled with inadequate resources and motivation to discharge its mandate of combating fire. Current and past governments have demonstrated a lack of political commitment to equipping the service to discharge its mandate.

Personnel of the Fire Service have been reduced to subjects of ridicule across the country for lacking proper equipment to discharge their duties.  Rather than motivating the Fire Service staff, the Ashanti Regional Minister, Dr. Frank Amoakohene, was captured on social media yelling at them and questioning their competence.

The minister needs to be reminded that competence alone cannot fight fire, it is a combination of competence and the availability of modern and functioning equipment that yields positive results.

Perhaps, out of frustration, a member of the Ashanti Regional Fire Service public relations unit made this significant statement: “What was the essence of shouting just to create an impression for social media?

That was uncalled for”, Mr. Alex King Nartey told the Minister. Impliedly, the Minister tried to gain popularity on social media, instead of providing the impetus for the Fire Service to do their best with the poor equipment available.

Many commentators on the fire at Adum argued that the Ashanti Regional Minister risks becoming a “social media Minister” if he does not refine his current communication strategy.

Budgetary allocations

Social media has been boiling with commentary on the scale of the impact of the fire. One citizen journalist made a comparative analysis of the 2025 budgetary allocations to the communications outfit of President John Mahama, and the Ashanti Regional Coordinating Council headed by the Regional Minister.

The details are that a substantial GHS78.8 million was allocated to government propaganda machinery headed by Felix Ofosu Kwakye. Similarly, the Ashanti Regional Coordinating Council received GHS24.88 million, while the National Fire Service, with stations across the country, was allocated a paltry GHS2.09.

The allocations indicate that the National Fire Service is not a national priority. Unfortunately, many Ghanaians,  often vent their anger on personnel of the Service when they fail to discharge their duties creditably. On several occasions, some have lost their lives or  injured in line of duty and received very little care, if any.

During the Akufo-Addo era GHS4 million was allocated to the communications office. NDC communicators decried the decision, citing the economic hardships confronting many Ghanaians.

Has the economy improved suddenly to warrant the allocation of GHS78.8 to government propaganda? Couldn’t some of this money be allocated to the National Fire Service to buy modern equipment to discharge their duties?

This is a clear case of double standards.  If a GHS4 million communication budget was unacceptable in 2024, GHS78.8 million for the same functions in 2025 is simply imprudent. What was wrong yesterday cannot be right today because of the change of government.

Trend analysis

A 10-year trend analysis of market fire disaster from the Ghana National Fire Service showed that there were 36 reported occurrences in 2006, 88 cases in 2011, and 130 blazes in 2015. In 2012, five markets, including Kantamanto, Makola, Mallam, and Kumasi Central markets, were razed down by fire, which affected over 500 stores and 5000 traders.

In 2013, a series of devastating fires consumed at least five market centres – Makola No. 2, Kantamanto, Madina, Agbogbloshie, Dome – in Accra, and the Kumasi Central Market in the Ashanti Region in a space of six months.

Similarly, more than 500 traders lost their sources of livelihood when an inferno engulfed sections of the Kumasi Central Market in February 2014. The market fires led to the loss of property, sources of livelihood, businesses and working capital and plunged traders into huge financial debts.

Considering the critical role of markets in the Ghanaian economy as hubs for revenue generation and growth points for stimulating local economic development, the recurrence of market fire disasters poses serious economic threats both at the macro and micro levels.

At the macro level, both the central and local governments lose taxes from business collapse, reduction in the operational and revenue scope of businesses, and delays in restarting operations resulting from market fire disasters. In short, market fire disasters pose major threats to sustainable livelihoods due to the erosion of economic gains and the capacity of traders to recover.

As I stated earlier, we cannot build a resilient and competitive economy when we fail to prevent what has become perennial and predictable fire outbreaks at our markets. These markets contribute significantly to the sustenance of livelihoods and economic growth. We need to have a national policy on fire prevention and effective firefighting.

Reference

Aning-Agyei, PG, Aning-Agyei, MA ,  Osei-Tutu, B, Kendie, SB. 2025. Assessing the economic effects of market fire disasters on businesses in Ghana. International Journal of Disaster Risk Reduction :118