Business News of Thursday, 24 January 2013

Source: myjoyonline

AGI worried by relocation of multinationals

The Association of Ghana Industries is expressing worry about the decision of some multinational companies in the country to relocate their production units to other West African Countries.

Some producers of Fast Moving Consumer Goods in the country have had to shift the production of some of their products to sister countries.

Some have explained this is a strategic business decision from their parent company. But the Association of Ghana Industries says it only worsens the country’s already undersized industrial sector.

The Executive Director, Seth Twum–Akwaboah explains to Joy Business this will negatively affect the economy.

“Definitely, this is not good for our economy, because when you have the opportunity to produce, you create more jobs in the country for people and you also pay taxes and the supply chain development and everything …because you may need to source part of your raw materials locally. If the entire chain of activity is done in the country, the country stands to benefit a great deal.”