General Secretary of the Ghana Food and Beverages Association (FABAG), Samuel Aggrey, has sounded the alarm regarding Ghana’s increasingly challenging economic situation.
During an appearance on JoyNews’ PM Express, Mr. Aggrey emphasized the departure of multinational corporations as a result of unfavorable taxation policies and economic conditions in the country.
He stressed the importance of tackling 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 notable economic hurdles, marked by soaring inflation rates, fiscal deficits, and currency devaluation.
Furthermore, structural challenges such as elevated public debt levels, limited economic diversification, and inefficiencies in public sector management have compounded the situation.
These factors collectively erode investor confidence, impeding foreign direct investment and economic advancement.
Hence, Mr. Aggrey expresses concern over the escalating exodus of international firms. He underscores the irony of Ghana’s claim as the gateway to Africa juxtaposed with the stark challenges confronting investors on the ground.
Despite governmental initiatives to lure foreign investment, he observes that the prevailing economic environment dissuades rather than incentivizes multinational corporations from establishing and sustaining operations in the country.
“We tout ourselves as the gateway to Africa and encourage investors to come to Africa, particularly Ghana, to do business. But when you come in and you invest, you realise that it is a different ball game altogether.”
He emphasized the necessity of reassessing current policies to enhance Ghana’s appeal to multinational corporations.
He urged policymakers to evaluate the repercussions of taxation policies on the economy and the long-term viability of foreign investments in the nation.