The productivity of workers declines in the holy month by 35-50% as a result of shorter working hours and the change in behavior during this month. Also people become less efficient and that they might even become bad tempered.
Ramadan, the eleventh month of the Islamic lunar calendar and for Muslims it is the most holy month.
During Ramadan Muslims cannot eat, drink, smoke or even chew gum during daylight hours.
People who are ill, elderly, long distance travelers, menstruating or pregnant women are exempted, but otherwise, every other able-bodied Muslim is expected to sacrifice as a sign of faith.
People stay up late to break their fast and get up in the early morning hours so they can eat before daybreak. This results in shorter sleeping hours which can cause people to become more lethargic later on in the day.
The positive side of Ramadan for business people is a higher demand for goods and services and higher consumption.
Decisions and meetings will be postponed until the period of Ramadan is over, especially in governmental institutions. This causes lower productivity and performance and might incur losses for business people because of the postponing of decisions and processing of government transactions.
Increase in demand
Levels of observance of Ramadan will vary in different countries and cultures but most Muslims will conform to some extent with the requirements of the fast.
In Saudi Arabia, employees holding senior posts are not entitled to work reduced hours and are required to work the hours that are necessary to carry out their duties in full.
In Algeria meanwhile, control and fraud repression brigades have closed more than 1,500 business premises because of noncompliance with the rules regarding fasting during the day, according to the trade ministry.
In most countries, some restaurants will remain open throughout the day, with a sign saying that food is served to non-Muslim people only.
The higher consumption equates to higher economic growth, although this is generally only a short-term effect.
Ramadan attracts huge increases in profits compared to the rest of the year. Merchants and individuals witness a decline in their purchasing power after Ramadan as a result of the higher prices against their fixed income.
It is not so different to the scenario witnessed over the Christmas period, when there are pronounced fluctuations in some types of businesses, particularly retail and entertainment.
At the end of Ramadan there is normally a lot of activity as people traditionally visit families to celebrate Eid-ul-Fitr, the day festival marking the end of the fast.
It is also a time when people exchange gifts – very often clothing, so sales of traditional costumes peak towards the end of the holy month.
This year Ramadan coincides with the ban on drumming festival of the Ga tradition which started 3 days to the beginning of Ramadan.
The ban on drumming which will end before the Ramadan will give the Muslems the opportunity to celebrate with ease.
Both traditions has much negative impact on businesses but changes after the Ga tradition lift the ban as well as the Muslims ends the Ramadan.
Moving feast
Charities also tend to get a boost during Ramadan as mosques collect donations and people are encouraged to donate online.
It is the busiest time of the year in terms of giving to the needy as some industries are to produce more to meet the demand especially rice producers or importers.
Because Ramadan is based on the Islamic lunar calendar and its timing is therefore determined by the sighting of the new moon, the holy month arrives approximately two weeks earlier every year.
When it falls during the winter months, with shorter daylight hours, business tends to be conducted with less interruption.
By Daniel Kwansah
