The General Secretary of the Food and Beverages Association (FABAG), Samuel Aggrey, has revealed a troubling trend, more businesses in Ghana are eyeing exits and slashing their workforce as they grapple with the harsh economic climate. Speaking on the PM Express Business Edition with host George Wiafe on May 2, 2024, Aggrey emphasized the gravity of the situation.

Aggrey warned that without government intervention to address their concerns, these businesses have no choice but to relocate. He cited ongoing challenges such as the persistent depreciation of the cedi and insufficient support for local firms facing competition from cheap imports.“The situation is getting very bad, most of these firms have to comprehend , with unreliable utility supply," Aggrey warned.

Highlighting the urgency of the issue, Aggrey noted the detrimental effects of unreliable utility supplies on businesses. He expressed concern over firms feeling compelled to leave due to the unfavorable economic environment, despite efforts to engage with government agencies.

Echoing these sentiments, Senior Economist Prof. Robert Darko Osei from the Institute of Statistics Social and Economic Research (ISSER) emphasized the profit-driven nature of businesses. Osei stressed that businesses will naturally seek environments where profitability is assured.“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”, he added.

Osei criticized the excessive tax burden on businesses, emphasizing that over taxation is not a sustainable solution for Ghana's economic woes.

“As a country we should realize that we cannot tax ourselves out of the current economic situation.“If we want to keep these businesses, then we need to look at the tax system going forward”, he advised.However, he expressed hope that adherence to International Monetary Fund (IMF) programs could pave the way for stability and create a more favorable climate for businesses.

The discussion underscored the need for strategic policy decisions to signal government commitment to addressing business concerns and fostering a conducive environment for sustainable growth. Osei emphasized the importance of prioritizing policies that stabilize the economy and reduce the cost of doing business to retain and attract investments in Ghana.

“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.

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