Some manufacturing firms in Ghana have started downsizing their businesses, whiles others are also laying off some workers due to the high cost of doing business in Ghana.
This has been compounded by the rising utility tariffs and high tax levels for most firms operating in the country.
The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum Akwaboah, who disclosed this on PM Express Business Edition on Joy News on Thursday, was of the view that it was time for the government to review its tax and utility tariff regime.
“There are a lot of pressure on some of the firms by their foreign shareholders to even shutdown their operations,” he said.
Mr Akwaboah rejected suggestions that companies facing challenges have not been innovative to remain competitive.
He cited for example that it was less expensive to operate similar businesses in other countries in West Africa.
He expressed worry that the current challenges with access to credit could worsen in the year.
He was, however, hopeful that the Financial Stability Fund that the Bank of Ghana plans to establish could cushion financial institutions.
“It may help address the concerns and fears of the industry about the challenge with access to credit and issue about the cost of credit in the country,” he said.
