Ghanaian Businesses are expected to massively lay off workers in the coming months due to the unfriendly business conditions in the country since 2013 up till date.
The year 2015 is on record in Ghana as one of the most challenging and exceptional years on many fronts. The volatility experienced on global commodity and currency markets, coupled with Ghana’s macroeconomic headwinds and three consecutive years of an energy crisis had a material adverse impact on business.
Approximately 5,000 jobs are believed to have been loss in 2015 alone due to the energy challenges that bedeviled the country.
The President of the Ghana Employers Association (GEA), Terence Darko, predicts that most business owners would be compelled to sack workers since the weakening macro-economic indicators of the country are not providing an enabling environment for businesses to expand.
According to him high cost of borrowing at 35%, increasing inflation rates, high fuels prices counterfeiting and illicit trade are all affecting smooth business operations in the country.
The aforementioned factors, especially counterfeiting and illicit trading activities, Mr Terence, noted, “have resulted in heightened competition thwarting efforts of legitimate businesses to expand as compared to pirates.”
The Employers Association has therefore called on government to as a matter of urgency initiate prudent economic measures to avert the looming danger.
Meanwhile, traders in Accra have painted a bleak economic outlook in the country, which they say, has affected businesses and cost of living.
According to them, ‘government’s bad economic policies’ is to be blamed for the harsh economic conditions being faced by Ghanaians.
The traders made the observation when they took turn to state what they believe to be the true state of the nation in an interview with Business Day last week.
To them the situation is gravely affecting Ghanaians as daily incomes continue to fall due to high taxes.
Beatrice Fosu who migrated from Obuasi to Accra two weeks ago in search of greener pastures narrated how difficult it has been for her to get a job.
“I came to Accra to find a job after the mining sector in Obuasi begun to collapse. I have struggled to get a job. People who want to offer you a job want to have sexual encounter with you first. The situation is very bad and people are barely surviving,” she explained.
“Sales are rather bad; the city authorities keep seizing our wares and prevent us from selling them. We have to feed our children and families. How do we get money to provide for our children and pay their fees if we are being stopped from selling,” says Dziedzorm Mensah, another trader.
