Indeed, Ghana is in a state of Hopelessness and visionless.. Every developed economy considers the private sectorr as her mainstay, thus she creates a serene macro environment that will ensure the Private sectors operates on a fullest capacity to enjoy economies of scale as well absorb de unemployed youth to its expanded operations. Contrary to de case of ghana, A company borrows at a high interest rate,abnormal increment in taxes,utility tarriffs are ballonin,cost of importaion of raw materials is high,cost of production will be high ofcourse.....and how will a company make up for its expenses let alone breakeven????? Industry threatens massive lay-offs over tariffs The Ghana National Chamber of Commerce and Industry (GNCCI) has expressed concern about the recent increases in utility tariffs and waned of imminent job losses. It said most industries would collapse under the burden of the high water and electricity charges. Mr Fosu Yeboah, Ashanti Regional Executive Secretary of the Chamber, who spoke to the Ghana News Agency (GNA), on Thursday, described the current state of the private sector as that of “hopelessness and despair.” If things continue this way many industry operators might fold up, he said, insisting that their planned budgets had been thrown overboard by the astronomical increases. He said, even though they were expecting an upward review of the charges, they never anticipated such “huge quantum leap.” Mr Yeboah said these, combined with the fuel price increases, high interest rate, labour cost and multiplicity of taxes, had left the private sector badly hurt. Mr Yeboah pointed out that industries, especially those in the timber milling sector, depended heavily on electricity and water for production and therefore they would be forced to borrow additional money from the banks at higher interest rates to maintain the same level of production. “This would surely mean that some of the workers would have to go home to offset the cost.”
Posted on: Fri, 04 Oct 2013 10:16:49 +0000
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