The Association of Ghana Industry (AGI) has told Citi Business News it is yet to confirm suggestions that some of its members have relocated to Cote D’Ivoire in a bid to avoid the economic pressures currently confronting them in Ghana.
Labor analyst, Austin Gammey, had asserted that Ghanaian businesses were relocating to Ivory Coast as they could no longer withstand the pressures from the cedi depreciation, high cost of power as well as high interest rates.
According to him, the increasing labour agitations have also compelled businesses to take such decision.
[contextly_sidebar id=”0t6AFfqZMwdEsT8qUrXah4Pxe9E0AuxQ”]Though AGI is yet to identify members who might have been part of the development, its Chief Executive Officer, Seth Twum Akwaboah however tells Citi Business News, undertaking such a move, will largely depend on the individual businesses.
“It is not that simple to just move out because a particular issue is hitting you; it takes a very long term planning before you can do so. For example if you have put up a factory here (Ghana) and you have the machines and everything installed, you can’t overnight say because of the challenges you are moving to another country, it doesn’t work out so easily.
But then if the situation persists for too long such that the company makes too much losses consistently and they can’t no longer cope with it, then they have no choice to close down or move to another country.” Mr. Akwaboah stated.
The CEO however noted, “That is a typical decision that businesses will have to make. So we need to find out who is making what decision and what is really happening in the system on the ground and identify who is moving or not. At this moment we have not done any study to know those that want to move or to want to stay.”
Chinese businesses relocating to Ghana
In a related development, the AGI has welcomed decision by Chinese businesses to relocate to Ghana following the economic downturn in their country.
The Minister of Trade and Industry, Ekow Spio Garbrah also tells Citi Business News discussions are ongoing to facilitate the relocation.
“Once they (Chinese) go by the law, then it means they are allowed to come in…if they are coming to set up big commercial farming and manufacturing plants to add value to whatever we produce and also to create more employment for our people, then we welcome it,”
“If they happen to go to areas where they are not permitted to go, like the retail or galamsey, in that case, I don’t see why it should be a threat, it should rather be prevented in the first place because if they enter there they threaten those Ghanaians who are already there,” Mr. Akwaboah noted.
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By: Pius Amihere Eduku/citifmonline.com/Ghana