You are here: HomeBusiness2016 10 31Article 482449

Business News of Monday, 31 October 2016


AGI weeps over collapsing companies

The influx of substandard foreign products on the Ghanaian market has led to the collapse of several industries and job losses, the Association of Ghana Industries (AGI) has revealed.

Afua Gyamfua Owusu-Akyaw, Chairperson of the Ashanti and Brong-Ahafo Regional branches of AGI, said the influx of substandard goods on the Ghanaian market is a major challenge facing local companies.

She added that more local companies would continue to fold up if such products were allowed into the country.

AGI Crunch Meeting

Madam Owusu-Akyaw said the major issue would be thoroughly discussed at the 56th national Annual General Meeting (AGM) of the AGI, which would be held for the first time in Kumasi, the Ashanti Regional capital, on Wednesday, November 2, 2016.

Members of the AGI, business executives and the public would also discuss the pertinent issues at the event which would be themed, ‘Growing Local Industry for Export Development and Job Creation,’ to improve the local industry.

Industry Challenges

Mrs. Owusu-Akyaw said manufacturers of foreign products have flexible tax regime, constant supply of power and low cost of credit, which make it difficult for Ghanaian companies to compete with them.

She also told DAILY GUIDE in an exclusive interview that high utility tariffs and inability to access credit from banking institutions are negatively affecting their operations.

According to her, most Ghanaian industries are pessimistic about the future.

Mrs. Owusu-Akyaw disclosed that a certain Ghanaian company, which used to have staff strength of 90 people, currently has only seven workers due to the unfavourable economic conditions.

According to her, several companies in the country had laid off workers in order to survive.

“Industries, which are the bedrock of every thriving economy across the world, are given bailout and protected in the developed world, but sadly, this is not the case in Ghana,” she stated.

AGI, which has been in existence for about six decades, has been playing an advocacy role over the years to ensure the survival and transformation of local industries.

The AGI’s crucial role in recent times has led to upfront tax relief, temporary suspension of terminal handling charges by shipping lines, among others, which have impacted positively on local industries.

All the previous national AGMs of AGI have been held in Accra, and this is the first time that the important national event is being hosted by the AGI Ashanti and Brong-Ahafo regional branches in Kumasi.