Unfavourable working environment forcing businesses to relocate – AGI

The Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), Tsonam Akpeloo, has noted that the business environment in Ghana is now unfavourable.

Due to this, businesses are relocating to neighbouring countries to maintain their production and remain competitive in the market.

He said some brands in the market are not produced in Ghana as the conditions are harsh for businesses.

Mr. Akpeloo's comment comes on the back of the recent 3.02% increase in electricity tariffs and a 1.86% hike in water tariffs for the third quarter of 2024.

Speaking on Citi Business News, the Greater Accra Regional AGI Chairman said it is about time the government looks into the quarterly increase in utility prices.

The high utility prices, he bemoaned, are causing more harm than good to the business community, and many have been pushed out of business.

“Most of the products that we have all known to be produced in Ghana, most of them are actually relocating. I am talking about the factories. Even though you still see the brands in our markets, the reality is that the production is not happening here, or they are minimizing production over time, and you can’t fault them because the production conditions in the economy are really tough for all businesses," he said.

“We in the industry are looking forward to having the government do something about the quarterly increase in utility prices. We feel that this approach is not helping the industry. At best, we do plan annually,” Mr. Akpeloo added.

The Public Utilities Regulatory Commission (PURC) of Ghana on Saturday, September 28, 2024, announced new increases in electricity and water tariffs by 3.02% and 1.86%, respectively.

This took effect from Tuesday, October 1, 2024.

According to PURC, the tariff adjustment is driven by several factors, including a 4.96% depreciation of the cedi against the dollar between the second and third quarters of 2024, as well as adjustments in inflation and gas costs, among others.

SA/EK