Audio By Carbonatix
The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Adu Aboagye, says he is not surprised at the departure of some international companies from Ghana.
He says his outfit had raised concerns about this reality a year ago, warning that unless the country addressed issues creating a hostile business environment, businesses would inevitably collapse and those who can afford pack out.
Speaking on JoyNews’ The Pulse on Thursday, May 9, Mr Aboagye said that international companies, like all businesses, prioritise profitability when establishing operations.
He emphasised that if operating costs outweigh potential profits due to factors like high operational expenses and exorbitant interest rates, it becomes economically impractical to remain in such an environment.
“Nobody sets up a business, especially for the international companies just for the fact that they just want to come to Ghana. They set up that business because they want to make profits because people have invested in the business and they have to give value for their shareholders. So they are looking for profit,” he said.
Mr Aboagye said that several other countries offer more favourable conditions for businesses, including lower interest rates and a more stable economic environment.
He highlighted Ghana's comparatively high interest rates, escalating utility costs, and the depreciation of the cedi against major currencies as significant challenges facing businesses.
“Our interest rate in Ghana at the moment is among the highest in the whole world. So if you are working in an environment like that and you need money to expand, you cannot get it so you go to where you can get the money.
“The cost of utility is also very high. Check electricity for instance, check water - we have had consistent increases in electricity and water and they all fit into the cost of doing business,” he said.
He added the cedi has depreciated close to about 15 per cent, noting that these international companies have "lost 15% of the money of the cedi if you want to convert it into dollars."
According to him, these businesses invest in dollars so when they want to pay money to their shareholders, they have to pay in dollars, hence when converting the cedis into dollars, they need more cedis to be able to get the dollar that they invested earlier.
Latest Stories
-
How Multimedia’s magic shot Gomoa Easter Carnival into global spotlight as A-Plus’ vision triumphs
33 seconds -
Zambia elevates tourism education to national priority as President Hichilema backs continental summit
7 minutes -
Activa promotes credit insurance to boost SME export growth
7 minutes -
ILTM Africa 2026 opens doors to inbound and outbound luxury travel in Cape TownÂ
12 minutes -
“BP Soul Travel and Tours scored the highest marks” – Sports Minister Kofi Adams endorses agency for World Cup travel
15 minutes -
‘At the age of 12, I was teaching people and collecting money from them’ – Forty Under 40 Awards
1 hour -
I broke my virginity at the age of 26 after university – Richard Abbey Jnr.
3 hours -
Sacked for fees, saved by faith: The untold story of Forty Under 40 Awards founder Richard Abbey Jnr
3 hours -
GCB Bank surges GH¢0.45, ETI gains GH¢0.06 as GSE ends week higher
4 hours -
Two teens jailed 55 years for robbery
4 hours -
UDS demands apology for MPhil student wrongly branded as Tamale robber
5 hours -
“We don’t sell fish!” – Tema Shipyard CEO hits back over dead fish discovery
5 hours -
Sam George defends anti-LGBTQ+ Bill as ‘national priority’ amid debate over gov’t focus
6 hours -
Artemis II astronauts safely back on Earth after trip around moon
6 hours -
Sam George unveils massive 1,150-cell site rollout to end network woes
6 hours