Industries could lay off workers - AGI cautions

Industries particularly manufacturing firms will have no option than to lay off workers if cost of production and doing business in Ghana rises.

This is a warning by the Association of Ghana Industries. It is unhappy with the PURC since it did not get back to it before the announcement in utility tariffs last Wednesday.

Reacting to the tariff adjustment in electricity and water, the Executive Director, Seth Twum Akwaboah of the industries said the 130.9 percent increment in utility tariffs could make businesses uncompetitive.

He also added that the percentage adjustment is too high.

“For industries when the cost of doing business is so high and uncompetitive what they do is to downsize and eventually close down they don’t go on demonstration I don’t think industry is going to go on demonstration. The other thing is that we need to look at the figures again we need to look at the detail and on the base of that we will make a fair judgment as to whether the level of adjustment is justifiable or not,” he said.

Meanwhile, the manufacturing sub sector is expected to grow at 2.5 percent this year. This is against 5.0 percent GDP recorded last year.

The sub sector also recorded a negative growth during the second quarter of this year.