The Ghana Union of Traders’ Associations (GUTA) has raised alarm over what it describes as the rising cost of doing business in Ghana, warning that the situation is forcing many firms to either scale down operations or completely exit the market.
According to the association, a combination of high taxes, utility tariffs, import duties, and general economic pressures has created an increasingly difficult environment for businesses to survive. GUTA noted that many of its members, particularly small and medium-sized enterprises (SMEs), are struggling to stay afloat amid declining profit margins and reduced consumer purchasing power.
Speaking on the issue, GUTA leadership stressed that the cost burden on businesses has become unsustainable. They explained that traders are grappling with persistent increases in electricity and water tariffs, high transportation costs, and fluctuating exchange rates, all of which significantly affect the pricing of goods and services.
The association further indicated that the current tax regime, coupled with multiple levies imposed by various regulatory bodies, is compounding the problem. According to GUTA, some businesses are paying numerous taxes and fees at different points in their operations, making it difficult to remain competitive.
As a result, several firms have either shut down or relocated to neighboring countries where the cost of doing business is perceived to be lower and more stable. GUTA warned that if the trend continues, it could have serious implications for employment, as business closures would lead to job losses and reduced economic activity.
The association is therefore calling on the government to urgently review and streamline the tax system, reduce utility costs, and implement policies that support local businesses. GUTA emphasized that creating a more business-friendly environment is critical to sustaining economic growth and protecting livelihoods.
It also urged policymakers to engage more closely with the private sector to better understand the challenges businesses face and to develop practical solutions that will enhance competitiveness.
GUTA concluded that without immediate intervention, the continuous exit of firms could weaken Ghana’s commercial landscape and undermine efforts to build a resilient and inclusive economy.
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