The Ghana Employers' Association (GEA) has warned there will more layoffs this year following current economic developments in the country.
According to the association, the unpredictable and unstable nature of the microeconomic environment, counterfeiting and illicit trade remains a big challenge to employers. Cost of borrowing has gone up to above 35 percent as current inflation is above 17%. President of the Ghana Employers' Association, Terence Darko speaking to the media said, counterfeiting and illicit trade in the country has heightened competition as legitimate businesses cannot compete.
"Counterfeiting and illicit trade in the country has heightened competition as legitimate businesses cannot compete with pirates who take a free-ride on the work of others without contributing to research and development.
The combined effect of these developments conspires to make the cost of doing business higher in Ghana and therefore, renders our business entities uncompetitive. Employers need a predictable and stable macroeconomic environment." stated.
Terence Darko further advocated a favourable environment to enable businesses thrive. "I, therefore, urge government to equip the regulatory bodies with the needed tools to strengthen their efforts in combating counterfeit and illicit trade in the country.
The Ministry of Finance needs to strengthen dialogue with business and industry to find strategies to improve the situation." He noted.