He believes that the “unfriendly tax regime” that firms encounter exacerbates the problem.
“Some enterprises in their attempt to cut their cost of operations have had to move some of their operations outside the country so they can remain competitive as a business”, he announced.
Mr. Twum-Akwaboah stated that Ghana has the highest cost of doing business in the sub-region when compared to its contemporaries.
“Ghana is quiet an expensive country in terms production and we are not improving that much”.
He believes that the government should reconsider some of its policy actions in order to enhance the private sector’s business conditions.
“Some of these businesses have built a model where they can move their operations elsewhere, in terms of where it is cheap to do business”.
“Industries are not asking for protectionism, but rather policies that will aid in the growth of local manufacturing firms”, he added.
He went on to say that in order to stay in business, some companies have had to lay off employees.
Mr. Twum-Akwaboah further mentioned that the cost of financing in the country has a significant impact on company operations.
He stated that most businesses are failing because they cannot afford the high cost of borrowing to keep their operations operating.
Mr. Twum-Akwaboah was concerned that institutions established over time to assist cut the cost of borrowing had not been as effective.
