Bad economy forces businesses out


Eleazer Nyaunu, the Regional Officer of the Industrial and Commercial Union (ICU), has observed that many companies are relocating to neighbouring countries as result of the high operational cost in the country.

According to him, businesses in Ghana are relocating to neighbouring countries like Ivory Coast due to the unfavourable economy in Ghana.

“If we are saying that the economy is not on a sound footing and businessmen are moving to neighbouring country, it is not only physical but they are moving resources and that is very real. I can confidently tell you that resources are being shifted beyond the shores of Ghana,” he pointed out.

He further noted that some of the companies which have subsidiaries in neighbouring countries have transported their resources.
“If the cost of doing business in Ghana is becoming unbearable and expensive, they have no option than to move there to enjoy the favourable economy,” he asserted.

The Tema ICU boss, who spoke to BUSINESS GUIDE in an interview, revealed that some industries had also resorted to unplanned dismissal of workers to save money in order to survive in Ghana.

He mentioned that over 500 workers had been sacked by their employers within the Tema Industrial Area in the first quarter of this year.

“I know about six different companies. I know a company called Lucky 1888 where more than 250 workers were sent home at a go. There is also a company called United Steel. It has not collapsed but it has sent home 180 workers, and there are other companies that have carried out similar exercises.

“Our fear is that more workers would be sent home so if an individual says the economy is on sound footing, I beg to differ,” Mr. Nyaunu stated.

He called on government to put proper measures in place to boost Ghana’s business environment in order to prevent companies from relocating to other countries in the sub-region, adding that Ivory Coast, which came out of civil war recently, has been able to grow its economy by 8.6 percent through the creation of a conducive business environment for all industries.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.