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
-
Dutylex promises more in 2026; targets market expansion
4 minutes -
Bawumia still NPP’s strongest asset — Northern region operations team
6 minutes -
Christian Service University inaugurates Most Rev. Prof. Emmanuel Asante as first chancellor
14 minutes -
Kumasi gridlock forces commuters to walk miles ahead of Christmas rush
18 minutes -
Paramount Chief of Assin Fosu honours John Boadu at grand durbar
20 minutes -
Minority flags election petitions, youth unemployment and third-term agenda as democratic threats
21 minutes -
Yamfo Traditional Council petitions President Mahama over security threat at College of Health
25 minutes -
PUWU threatens industrial action over illegal takeover of Ghana Water Lands in Ashanti region
27 minutes -
Minority accuses state of legitimising illegal gold and environmental destruction
37 minutes -
US$365m IMF cash credited to BoG account
38 minutes -
From Noah’s Ark to Ebo’s Ark: faith, frenzy and the fine line between divine warning and modern misunderstanding
38 minutes -
Minority warns Mahama over galamsey, GoldBod and environmental collapse
39 minutes -
John Boadu launches nationwide tour to foster unity ahead of NPP presidential primary
43 minutes -
ESDEV Foundation Africa, Gebeya partner to boost digital skills and youth employment in Ghana
45 minutes -
Full Text: Final recommendations of the CRC presented to President Mahama
48 minutes
