The Director of the Association of Ghana Industries (AGI) Seth Tsum Akwaboah has expressed concern that the recent fluctuation of business confidence shows the economy Ghanaian is not resilience enough to hold itself against the current economic challenges.
According to the Business Barometer Report, the confidence in doing business in Ghana dropped from 97.3 points in the third quarter to 93.1 point to the fourth quarter of 2015.
The report also cited recent utility hikes coupled with, inadequate power supply and unstable currency as major contributing factors collapsing businesses in the country.
AGI Director Seth Tsum Akwaboah also indicated that the rationale behind the survey is to draw the nation’s attention to factors affecting businesses and also make efforts to address them.
He added that government must address the Macroeconomic stability of the cedi, whiles putting in place a financial scheme to assist business borrow for the long term to expand their businesses.
“Most businesses in Ghana do not produce in large volumes and a financial scheme by government that will see businesses accessing credit over a long term period was crucial for the sustainability of businesses in the country. The current rate of 36 percent interest on loans, that is being charged by some financial houses is too high to enable businesses survive in this global competitive environment. Also the campaign to support made in Ghana goods must be intensified.” He noted.