The CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has expressed concern over the increasing collapse of businesses due to a multitude of taxes, leading to widespread layoffs.
Mr Badu-Aboagye highlighted the chamber members’ struggles, stating that economic challenges are forcing companies to downsize their workforce.
He emphasized the discontent among employers with the current economic conditions.
During an appearance on PM Express, he called for government intervention to alleviate the financial burden on businesses, emphasizing the need to reduce operational costs for sustained viability.
He shared a specific example, stating, “One of our workers had over 125 workers somewhere last year, but now he has abandoned some of the work he was doing. He will eventually shutdown some of his plants because it is difficult to meet up with some of the demands from these employees”, he narrated.
“As of the third quarter of 2023, the growth of GDP was 2%. And when you look at the details you will realise that most of the sectors are not doing well. Consistently from the beginning of the year to now. The industry sector has recorded negative growth. It’s only in the last quarter that the manufacturing sector recorded a 2% growth. So it shows clearly that businesses are not doing well”.
“If they are doing well, they produce a lot and by multiplying it by the market value, you will see that your GDP [Gross Domestic Product] will go higher. So it’s not far-fetched, if the government wants to know the state of businesses in Ghana, just check the GDP.” he said.
Badu-Aboagye further underscored the consistent negative growth in the industry sector throughout 2023, revealing the broader challenges faced by businesses.
He pointed out that as of the third quarter of 2023, the GDP growth was only 2%, with most sectors facing difficulties.
He concluded by asserting, “It shows clearly that businesses are not doing well. If the government wants to understand the state of businesses in Ghana, they can simply check the GDP. The manufacturing sector only recorded a 2% growth in the last quarter, indicating the overall struggle faced by businesses.”