If Sada Guinea Fowls Relocated To BurkinaFaso, Why wouldn’t Business Firms Also Relocate?
”It is not true that business are folding up to go to Cote D’Ivoire, it is just a political talk. Anytime I hear such claims, the question I always ask those who make that claim is, they should provide the name of a single company that has left Ghana for Cote D’Ivoire”.
The aforementioned statement was made by President Mahama in an interview with Twin City Radio in Takoradi in the Western Region. He who calls for equity must come with clean hands. As a President who believes in evidence, Ghanaians were also expecting you to have provided evidence of companies who have not relocated to other neighboring countries. Anyway, can the President be trusted for his words? President Mahama in a church asked the clergy to read his lips for he will banish Dumsor-Dumsor by the end of 2013. Mister President, were you able to do that? If the President was not sincere with a church promise, how much more a radio talk? If naked says it will give you cloth, listen to its name.
Let’s look at some economic statistics from Cote D’Ivoire. Inflation in 2010 was 1.1%. Interest rate in 2014 was 3.50%. Inflation was – 0.20% in February 2014. It was below 2% for the whole of 2013. Inflation rate in April 2012 was as low as 3.84%. The budget deficit of Ivory Coast in 2012 was 3.50%. GDP growth rate have been above 9% since 2012 and projected to be in double digits in 2014, 15 and 16. Interest rate by the year 2015 was 4.25%. GDP in 2015 was 17.61%. Inflation in February 2016 was 0.90%. Interest rate by January 2016 was 3.5%.Agriculture in 2013 grew by 26.3%
Under the Better Ghana economy, let’s look at some economic indicators; Inflation as at February 2016 was 18.5%. Interest rate averagely is 34%. GDP in 2015 was 4.1%. Agricultural growth rate in 2015 was -1.7%. Manufacturing growth rate in 2015 was -8%. Under six years of the NDC the cedis depreciated by 227%. These economic indicators are also coupled with lack of access to long-term credit, lack of access to short-term credit (due to over borrowing by government which is squeezing out private entrepreneurs), high interest rate, high cost of utility services, high exchange rate, high imposition of taxes on industries or companies, Dumsor-Dumsor. In 2012 Ghana’s budget deficit was GHC 8.7 billion ($4.6 billion) amounting to 12.1% of GDP using the rebased GDP numbers or 20% using the old GDP figures which is the highest deficit recorded in Ghana’s history.
Upon this entire draconian economic environment in Ghana, why would companies not relocate to Ivory Coast? Maybe to the President, the growth of companies in Ghana is measured by the continuous existence of RLGEE,E and PEE and SMARTES. Can the President confidently say that businesses are relocating to Ghana with this economic environment?
President Mahama in his interview with Twin City Radio reiterated that it is not true that businesses are folding up to other neighboring countries and not a single name of such companies have been provided. Let’s look at the following publications;
“Firms Relocating To Cote d’Ivoire Over Economic Crisis. Labour consultant, Mr. Austen Gamey is warning of dire consequences for the country if the economic challenges as well as Labour agitations are not contained. “I can tell you on authority that people are moving their business to Cote d’Ivoire right now so if we want to destroy this country, we should continue. Ghanaian businesses have found better prospects in those countries. In Cote d’Ivoire, their currency is not suffering the way the cedi is doing and we cannot compare ourselves to them at all” (Business Finder, Thursday January 21, 2016).
“Businesses in Ghana were moving their production lines into Ivory Coast and Nigeria. Our environment is a real threat to doing business in Ghana so it is not surprising to learn that businesses are moving out; we know that almost all products of CAD BURY for instance are being produced in Nigeria and other countries in west Africa” By Mr. Solomon Kotei, Secretary-General of the Industrial and Commercial Union.
“Over the past few years, some companies like PZ and BAT have closed down their manufacturing plants and moved to Nigeria, choosing rather to import their finished goods into Ghana. Others are considering moving out too” (the Chronicle- Wednesday August 28, 2013). Again with aviation industry, some airlines like German airline, Brussels airline and the Lufthansa airline have folded up business due to high cost of operations in Ghana. It is now evident that three companies have relocated from Ghana to other neighboring countries. This clearly shows that the President is not in charge of the affairs of this nation .To President Mahama, Ghana’s economy is good for doing business. So if the economy is good, why are companies laying off workers?
Investors lose Faith in Ghana’s Economy – CEPA ( Business Finder Thursday, July 2, 2015) “Ghana has lost credibility in the investment community. We (Ghana) are giving too many excuses and blaming our problems on the negative impact of external forces. Investors do not trust the way we are managing the economy.” Executive Director of CEPA, Dr Joe Abbey. In August 2014, the NDC government through President Mahama declared its intention to go to the IMG for policy credibility. It’s almost two years now when Ghana decided to go to the IMF and yet, things are worsening. If the Economy is good, why did the President go to the IMF for policy credibility? This means hitherto, the economy of Ghana under President Mahama had no credibility.
Again let’s examine some Business Reports on the economy of Ghana and that of Cote d’Ivoire.
The 2015 World Bank Ease of Doing Business Report On Cote d’Ivoire said “Cote d’Ivoire in 2012 made starting a business easier by reorganizing the court clerk’s office where entrepreneurs file their company documents and the creation of a one-stop-shop, reducing the notary fees and replacing the requirement for a copy of the founder’s criminal record with one for a sworn declaration at the time of company registration, reducing the minimal capital requirement, lowering registration fees and enabling the one-stop- shop to publish notices of incorporation.”
The same report revealed that Ghana had increased the cost of starting business by 70% in three years, increasing cost of registering business in Ghana, difficulty in obtaining tax identification number by entrepreneurs prior to company incorporation due to some reforms undertaken by government in 2014.
Also The World Bank’s Doing Business 2016 Report further disclosed that Ghana dropped from 112 to 114 on the ease of doing business ranking.
Ghana hitherto, the gateway to West Africa, slipped from 111th out of 144 to 119th out of 140 countries across the world in the 2015-16 Global Competitiveness Ranking of the World Economic Forum.
President Mahama told the world that he has solved the Dumsor-Dumsor and must be congratulated. So why the sudden return to Dumsor as announced by the Power Minister? To President Mahama, Ghana’s economy is good and for that matter no company has left Ghana due to Dumsor.
If the economy is good, why is government not employing students from the teacher and nursing training colleges? Why has the government failed to employ students from the School of Hygiene for over five years? Why are graduates patronizing gambling centers as their source of earning income instead of being employed?
La Cote d’Ivoire had just returned from war when the seventy-five year Old President Quatara took over.
He did not go to the IMF for policy credibility but rather focused on his economic reform policies and fought against corruption. Under his leadership, Cote d’Ivoire is the world’s leading cocoa producer and now Africa’s attractive zone for doing business.
In a country called Ghana headed by a youthful President called John Mahama, who inherited the fastest growing economy with a single digit inflation quickly runs to the IMF for a bail out in order to have POLICY CREDITILITY due to his incompetence and mismanagement.
A YOUTHFUL President Mahama can spend $4.6 billion within six months during the 2012 election and later runs to the IMF to borrow $918 million in order to gain POLICY CREDIBILITY. What a youthful PRESIDENT.
The Dumsor-Dumsor cost the nation $924 million in 2014 according to ISSER and yet the youthful President runs to the IMF to borrow $918 million with interest without solving the DUMSOR-DUMSOR PROBLEM.
“In my second term and by 2020 it is our plan to ensure that we run a balanced economy” By President Mahama.
Mister President, do you need 2020 before you can balance the economy? Why can’t you balance the economy now? To President Mahama, because SMARTEES, E and PEE and RLGEE have not relocated, it means no company has left Ghana.
If the economy is good as stated by President Mahama, why is he now promising to put money into the pocket of Ghanaians in 2017? In a good economy citizens work and put money in their pockets ..Is the goodness of the economy reflecting in the living standards of the ordinary Ghanaian? Change is coming…Ghanaians are for change… vote for change… Vote for Nana Addo.
By: PAPARAZY ANDREWS ASAMOAH.