High cost of doing business pushing firms out of Ghana – GUTA

The Vice President of the Ghana Union of Traders Association (GUTA), Joseph Paddy, has warned that the rising cost of doing business in Ghana is compelling some companies to reduce production or move their operations to neighbouring countries.

He noted that Ghana remains one of the most expensive places to operate within the sub-region, making locally produced goods less competitive than imported ones.

Speaking on JoyNews on Thursday, April 30, 2026, Paddy stated that traders often find it more affordable to import goods rather than source them locally, even after accounting for import duties.

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“When there is a shortfall and we go out to import, it is still cheaper than what is produced here,” he said.

According to him, high costs particularly for electricity, water, and financing continue to burden local producers, limiting their capacity to meet demand.

He revealed that some businesses have shifted from production to trading, while others have completely relocated.

He also mentioned Ivory Coast as a preferred destination, given its relatively lower production costs.

“In Ghana, production can be as high as 30% to 35%, but in countries like Ivory Coast, it is between 3 and 7 percent,” he explained.

Paddy cautioned that this development could have dire consequences for job creation, as factories either cut operations or shut down completely. He cited the example of a local manufacturer who stopped production due to high electricity costs and turned to importing, which led to job losses.

The GUTA Vice President emphasized that the situation highlights deeper structural issues in Ghana’s production environment. He urged the government to put in place policies that reduce business costs and strengthen local industries.

“Every business grows on policy. One good policy can help a business grow,” he said.

SO/SA

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