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Business News of Saturday, 9 May 2015

Source: Tv3network.com

AGI predicts more job cuts

The Association of Ghana Industries (AGI) says it is undoubtable that most businesses will cut jobs as a result of the effect of the power crisis.

“We will have more job cuts. There is no doubt about it.”

According to the AGI, confidence in doing business in the country has already dipped, especially in the first quarter of the year.

Speaking on TV3 on Friday, May 8, Chief Executive Officer of the Association Seth Twum Akwaboah cited cost of doing business as having risen for employers “because businesses cannot continue to employ and ask people to come and sit at the factory and they can’t produce, sell and make money.

“No business can operate on that basis.”

He made this observation on the sidelines of the release of the business barometer for the first quarter of 2015.

47 per cent of captains of businesses expect the situation to worsen while 18 per cent hope for the better, according to the barometer.

“The next quarter, if we get improvement in the power situation, the expectation will then improve even if the current environment is not so good,” observed Mr Akwaboah.

“Once we have improvement in expectation, the combination of it will move the indicator up. For now it isn’t.”