The Vice President of the Ghana Union of Traders Association (GUTA) Joseph Paddy has cautioned that high cost of doing business is forcing companies to scale down production and relocate to neighbouring countries.

He observed that Ghana remains one of the most expensive operating environments in the sub-region, making locally produced goods less competitive compared to imports. Speaking at the JoyBusiness Roundtable discussion on Ghana’s economic performance, Mr. Paddy noted that traders often find it cheaper to import goods than to source them locally, even after paying duties.

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

According to him, the cost pressures, particularly electricity, water and financing, continue to weigh heavily on local producers, limiting their ability to meet demand.

Mr. Paddy disclosed that some businesses have already shifted focus from production to trading, while others are relocating entirely.

He cited Ivory Coast as a preferred destination, where production costs are significantly lower.

“In Ghana, production can be as high as 30% to 35%, but in countries like Ivory Coast, it is between 3 and 7 percent,” he explained.

He warned that the trend could have implications for job creation, as factories cut down operations or shut entirely.

Mr. Paddy referenced a local manufacturer who halted production due to high electricity costs and switched to importing goods, resulting in job losses.

The GUTA Vice President stressed that the situation reflects deeper structural challenges within Ghana’s production environment. He called on government to prioritise policies that reduce the cost of doing business and support local industries.

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

Industry players say unless urgent steps are taken to reduce production costs and improve access to financing, Ghana risks losing more factories, jobs and investment to competing economies within the sub-region

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High cost of business is forcing companies to leave Ghana - GUTA

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