The CEO Network of Ghana has expressed worry about the seeming lack of a discernible intervention by the government and the effect of the challenges on the overall dynamics of the economy.
In a statement signed by Ernest DeGraft Egyir, it said the rapid depreciation of the cedi has meant that businesses dependent on forex for daily transactions are facing enormous and unsustainable liquidity challenges with many threatened by the prospects of insolvency and closures.
This development, it added, holds dire consequences for the survival of many businesses and employment.
“The rapid depreciation of the cedi has meant that businesses dependent forex for daily transactions are facing enormous and unsustainable liquidity challenges with many threatened with the prospects of insolvency and closures. This development holds dire consequences for the survival of many businesses and the employment of many”.
Furthermore, it said the situation is further compounded by the rather ruthless and punitive enforcement of the tax regime.
“This situation is further compounded by the rather ruthless and punitive enforcement of the tax regime which continues to badly affect the ability of business to sustain their operations within the current climate not to mention undertake hiring of new labor and ease the unemployment difficulties confronting the economy”.
“The ongoing situation with the economy is exacerbated by the rampant hikes in fuel prices coupled with uncertainty with the adequate supply of fuel within the economy. These price rises and uncertainties depress economic activity and the prospect of shortages may depress economic activities. The situation remains deeply troubling for the general performance of the economy but even more problematic for businesses directly dependent on crude oil imports and distribution as well as consumption”, It added.
It pointed out that the ongoing bailout talks with the International Monetary Fund provide a blueprint template for a government intervention, but that of itself is both inadequate, “and in the circumstances delayed to respond to the fast paced occurrences in the economy and seeming collapse of the Ghanaian cedi. In the circumstances, there seem an urgent need for government intervention independent of the bailout prescriptions to be administered as and when agreed”.
Again, the CEO Network of Ghana said the situation of labour and industrial unrest occasioned by other economic variables such as the steep depreciation of the cedi calls for urgent action as well, adding, the current silence of government on these remain both inadequate and unsatisfactory.
“We accordingly call on government to address the nation on the state of the economy before the presentation of the budget, the taking of bold and imaginative steps to halt the rapid depreciation of the cedi, make a clear statement on policy and steps to deal with the rising labor unrest and general cost of living situation”, it added.
The CEO Network of Ghana concluded pledging its support and commitment to government to help overcome the raging economic difficulties and looks forward to cooperating when invited.