Rising business costs forcing companies to exit Ghana — GUTA

The Vice President of the Ghana Union of Traders Association, Joseph Paddy, has warned that the high cost of doing business in Ghana is forcing some companies to scale down production or relocate to neighbouring countries.

He said Ghana remains one of the most expensive destinations for production in the sub-region, making locally manufactured goods less competitive compared to imports.

Speaking on JoyNews on Thursday, April 30, 2026, Mr. Paddy noted that traders often find it cheaper to import goods than to source them locally, even after factoring in import duties.

“When there is a shortfall and we go out to import, it is still cheaper than what is produced here,” he stated.

He attributed the situation to rising operational costs, particularly in electricity, water, and financing, which continue to weigh heavily on local manufacturers and limit their ability to meet demand.

According to him, some businesses have shifted from production to trading, while others have moved their operations entirely to other countries. He cited Ivory Coast as a preferred destination due to its relatively lower production costs.

Mr. Paddy explained that production costs in Ghana can range between 30 and 35 percent, compared to between 3 and 7 percent in countries like Ivory Coast.

He cautioned that the trend could have serious implications for employment, as companies cut back operations or shut down, leading to job losses. He referenced a local manufacturer who halted production due to high electricity costs and turned to imports, resulting in layoffs.

Mr. Paddy stressed that the situation reflects deeper structural challenges within Ghana’s production environment and called on government to implement policies that will reduce the cost of doing business and support local industry growth.

“Every business grows on policy. One good policy can help a business grow,” he added.

Prince Antwi

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