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Business News of Thursday, 27 August 2020


Coronavirus: GIPC forecasts 40% workforce reduction for foreign investors

Yofi Grant, CEO of GIPC Yofi Grant, CEO of GIPC

The Ghana Investments Promotion Centre (GIPC) is forecasting a 40 percent reduction in the workforce of foreign investors operating in Ghana.

This is as result of the coronavirus induced stay-at-home orders for most of these foreign companies and investors.

The Centre in a recent survey dubbed; “Survey on the Impact of Coronavirus (COVID-19) on Foreign Investors in Ghana” noted; “With regards to employment, 40 percent of foreign investors foresee a permanent reduction in their workforce in the ensuing months.

“Meanwhile, most workers have had to stay home temporarily due to the pandemic. Despite the downturn in activity experienced by various industries and businesses, sectors such as manufacturing, food processing, e-Commerce, agriculture and healthcare have remained resilient and present opportunity for growth and investments,” the GIPC said.

Meanwhile, the Centre in its survey showed foreign investors operating in Ghana, have in the second quarter of 2020, recorded an average revenue loss of US$75,000.

The survey, which was conducted between April 1-June 12, 2020 said 51.43 percent of the respondents sampled had been negatively impacted by the Coronavirus pandemic.

While 51.4 percent of the respondents sampled, had recorded revenue losses in excess of US$100,000.

Additionally, the GIPC said the rest of the respondents sampled recorded losses between US$100,000 and less than US$1,000.

These losses, the GIPC says was as a result of the Coronavirus pandemic and its associated lockdowns, closure of land and air borders that have since affected demand and supply chains globally.