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
-
(Photos) Mfantsipim School launches historic 150th anniversary
16 minutes -
Knights and Ladies of Marshall group backs Catholic Bishops’ stance on anti-LGBTQ+
1 hour -
Bright Simons writes: All the Filla in the Ibrahim Mahama/E&P – Gold Fields Saga
2 hours -
Monetise Idiocy In Ghana
2 hours -
The Ghanaian prophet and the mysterious death of his scottish wife Charmain Speirs
2 hours -
Nearly 400 sentenced in Nigeria for links to militant Islamists
3 hours -
Ghana’s recovery supported by gold strength despite global oil price pressures – Standard Bank Research
3 hours -
Methodist Church hails Mfantsipim@150; calls for “fresh consecration” to excellence
3 hours -
‘Excellence is our inheritance’ – Nana Sam Brew-Butler hails Mfantsipim’s 150-year reign in leadership
3 hours -
Kwaku Azar writes: A-G vs OSP
4 hours -
Mfantsipim–Adisadel rivalry built excellence, not division – Sam Jonah
4 hours -
Vice President launches Mfantsipim’s 150 years of shaping Ghana’s greatest mind
4 hours -
I assure Otumfuo, Mahama will join him to commission KNUST Teaching Hospital by end of this year – Haruna Iddrisu
5 hours -
Barcelona dominate derby to extend La Liga lead
5 hours -
Gov’t to roll out free special education for persons with disabilities from July 1 – Education Minister
5 hours