January 23, 2021

COVID-19: Revenue losses among AGI members troubling – Seth Twum-Akwaboah

Many companies who are part of over 2,000 members of the Association of Ghana Industries, AGI, have witnessed a dip in their profits due to the impact of the COVID-19 pandemic.

The Coronavirus pandemic and its attendant restrictions, has seen companies reducing their staff numbers thereby impacting their output and profitability, while a drop in demand of some consumer goods has also impacted sales and revenue.

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Speaking to Citi Business News on the challenges manufacturing companies and others are facing due to the pandemic in Ghana, the CEO of AGI, Seth Twum-Akwaboah, said the situation is troubling.

“This is serious. Our members cut across twenty-three different sectors especially those in the hospitality and manufacturing sectors who are having various challenges. All of them are facing it in one way or the other. Unfortunately, we don’t have figures to show the revenue loss, but I can tell it is very troubling,” he said.

Already, from an assessment that was done in Ghana’s tourism and hospitality industry, between March and June, it was indicated that the operators, both formal and informal, were going to register losses of about 171 million dollars.

Ghana’s hospitality and tourism sector is one of the hardest hit by the COVID-19 pandemic. The sector is projected to create about a million jobs, while contributing about 6.2 percent to Ghana’s GDP.

Also, checks by Citi Business News at some hotels in Accra show that some facilities are reviewing their models to accommodate new businesses anytime soon as they are yet to make gains after the partial easing of COVID-19 restrictions

Estate developers within the construction sector which contributes 14.2 percent to the country’s GDP are also seeking support from government to prevent job losses.

Source: Business