The Ghana Chamber of Commerce is predicting a gloomy economic future for local businesses should the incoming Akufo-Addo-led administration fail to address key issues related to high interest rates and unbearable taxes.
The Economic Intelligence Unit (EIU) has predicted in an economic report that interest rates in Ghana will continue to decline in 2017 provided inflation rates reduce.
The Central Bank recently increased interest rates to 30 and 35 percent.
President of the Chamber, Nana Dr. Appiagyei Dankawoso I, fears that local businesses could fold up as they would not be able to compete with foreign businesses should the cost of doing business in Ghana remains on the high side.
“Taxes are on a very high side as far as we are concerned and we expect that some of these taxes would be brought down. If there’s reduction of taxes on imports, the cost of production can come down,” he revealed to Joy Business.
According to Nana Dr Dankawoso I, the high principal on interests has resulted in lots of litigations against business – a development he fears does not augur well for Ghana’s business environment.
The concern raised by the Chamber follows concerns raised by the Association of Ghana Industries over possible layoffs ahead of 2017.
Chief executive officer (CEO) of the AGI, Seth Twum Akwaboah has revealed to Joy Business that some industries are considering laying-off workers next year as part of measures to down size so as to adjust to the current economic challenges.
Meanwhile, the chamber has congratulated all political stakeholders for ensuring an enabling environment for business to thrive by ensuring peace in the just ended general elections.
The chamber is thus calling on president-elect Nana Addo to engage the private sector for Ghana’s economic development.