The Ghana National Chamber of Commerce and Industry (GNCCI) calling on government to as a matter of urgency implement responsive and coherent policy adjustments to address the current economic challenges as any further delay will not bode well for the economy.
According to the Chamber, government has a role to play as an enabler and facilitator in creating a conducive business environment for the private sector to thrive.
At the inauguration of its newly formed National Council for a tenure of two years (2022 to 2024), the President of the Chamber, Clement Osei-Amoako said the structural and cyclical economic challenges are impeding progress in unleashing the full potential of the private sector to industrialize and create jobs’.
“The Ghanaian business environment is currently bedevilled with high inflation hovering around 54% and a rapid depreciation of the cedi which has eroded business capital. In addition, the persistent increase in the policy rate has resulted in a high lending rate averaging 40% and also affecting loan repayments as banks have upwardly reviewed their contractual loan pricing”.
“The ongoing Domestic Debt Exchange Programme and hair-cut have affected business and investor confidence. Per the Debt Sustainability Analysis, Ghana is exposed to rising and unsustainable debt levels and this calls for prompt responsive policy adjustments”, he pointed out.
He therefore called for special emphasis to create a conducive environment for the private sector that attracts foreign direct investments and increases its ability to stimulate inclusive economic growth.
He further stated that, the recent upward adjustment in utility tariffs (29.96% for electricity and 8.3% for water) is expected to have dire consequences on already struggling businesses by making them vulnerable, erode their competitiveness, and lead to massive layoffs and potential shutdowns.
He however said, it has petitioned the Parliamentary Select Committee on Mines and Energy for its intervention on the rising cost of utility tariffs.
The GNCCI National Council is of the firm conviction that regular stakeholder engagements hold the key to surmounting any challenge and therefore urges government to leverage the goodwill of the private sector to effectively address these economic challenges and create a favourable environment for businesses.
The GNCCI Council will serve for a two-year term (202-2024).
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