The Public Relations Officer (PRO) of the Ghana Union of Traders’ Association (GUTA), Joseph Paddy has shared that it is quite expensive to run a manufacturing business in Ghana.
According to him, this high cost of doing business makes it unattractive for Ghanaians to operate manufacturing industries and create jobs, but would rather import same goods at lower costs.
Sharing such a case on the May Day edition of the Happy Morning Show with Samuel Eshun aired on e.TV Ghana and Happy FM, he said, “The cost of doing business is not attractive here in Ghana and that is why people rather import these products and goods. I had a friend who was in the manufacturing business and had employed over 80 people but had to shut down his operations in less than a year because he wasn’t even breaking even.
His utility charges were so much and although his products were of good quality, he couldn’t compete with imported ones”.
Comparing imports to local production, Joseph noted that one can travel for long hours to other countries to import these products, pay duties, and still make profit.
“This friend of mine stopped manufacturing and started importing what he was producing initially and made at least 30 percent profit. He sold at a cheaper price than when he was into production”, the GUTA PRO disclosed.
Ghana’s manufacturing drive has seen a steady rise over the past few years with the President’s introduction of the One District One Factory (1D1F) policy.
With the government providing incentives to manufacturing companies, many local and international businesses have joined in Ghana’s industrialisation and job creation drive.
Source: Happy 98.9FM