"The Situation Is Not Getting Any Better, And Businesses Are Moving Out Of The Country"

As indicated by the General Secretary of the Food and Beverages Association, Samuel Aggrey, more organizations are planning to move out of Ghana. He said, other than this, these organizations are also eliminating their labor force as a component of measures to deal with the challenging economic environment.

On May 2, 2024, he made the revelation on Joy FM’s “PM Express Business Edition.”

He admonished:

“It has been a very difficult decision for most of these businesses, and if government does not take steps to deal with their concerns, they will not be left with any option than to relocate”

He went on to say that businesses that had already left made the decision after engaging in a number of interactions with the government and other agencies that, in the end, did not result in the desired outcomes.

Mr. Aggrey said for instance that, the cedi’s enduring deterioration has also not been useful, a significant contributory component to the organizations leaving.

He said that the government hasn’t done enough to protect businesses in the country from the bad effects of cheap imports.

“The situation is getting very bad, most of these firms have to comprehend , with unreliable utility supply”, he said.

Speaking on the program, Senior Economist at the Institute of Statistics Social and Economic Research (ISSER) Prof. Robert Darko Osei noted that businesses will only go where profit is guaranteed.

“We should understand that for most of these businesses, it’s all about the profit and if the situation is not good for them in a country they operate, then they have to take some action”.

“We should also understand that most of these moves have been influenced by the economic environment and how it is impacting on their operations”, Prof. Darko Osei said.

He also expressed his disappointment about the quantity of taxes forced on businesses.

“As a country we should realize that we cannot tax ourselves out of the current economic situation”, he said.

Expressing some hopefulness, Prof. Osei said if government would adhere to the International Monetary Fund program, then the much discussed solidness could be accomplished soon to advance the circumstance for businesses.

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He called attention to that, the cost of carrying on with business in the country is very high contrasted with other countries in the locale.

“If we want to keep these businesses, then we need to look at the tax system going forward”, he advised.

Prof. Osei noted that working hard to stabilize the economy and improving the fiscal situation will help deal with the challenge.

“Policy Prioritization is also very important in these times, to send some signals to these companies that government is committed to dealing with their issues” he said.