The General Secretary of the Ghana Food and Beverages Association of Ghana (FABAG), Samuel Aggrey, has sounded the alarm regarding the increasingly dire economic situation in Ghana.
During an appearance on JoyNews’ PM Express, Mr. Aggrey expressed concern over the departure of multinational companies, attributing it to unfavorable taxation policies and economic conditions prevailing in the country.
He emphasized the urgency of addressing these issues to avert further economic decline.
“The situation is getting dire. If you look at companies and service providers like Glovo, Jumia, Game, and others contemplating the possibility of leaving because of the economic situation we have.
“If you look at the taxation policy that we have in this country, it is actually not helping some of these businesses who have come in and invested so much,” he said on Thursday.
In recent years, Ghana has grappled with significant economic challenges, including high inflation rates, fiscal deficits, and currency depreciation.
Structural issues such as high public debt levels and limited economic diversification have also hampered investor confidence and hindered economic development.
Mr. Aggrey expressed concern about the departure of international companies and highlighted the contradiction between Ghana’s self-proclaimed status as the gateway to Africa and the challenges faced by investors on the ground.
Despite government efforts to attract foreign investment, he noted that the current economic climate is discouraging rather than encouraging multinational companies to establish and maintain operations in the country.
“We boast of being the gateway to Africa and encourage investors to come to Ghana to do business. However, upon investing, they encounter a different reality,” he remarked.
Mr. Aggrey stressed the need to reassess existing policies to enhance Ghana’s attractiveness to multinational corporations. He urged policymakers to evaluate the impact of taxation policies on the economy and the sustainability of foreign investments in the country.