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| As a result of the Cedi - Addo Agyekum's free slide, manufacturing companies are struggling. |
According to Dr. Michael Agyekum Addo, founder and CEO of the Mikado Group of Companies (formerly the KAMA group), some firms are currently failing due to the present depreciation of the cedi against the dollar.
He added that the COVID crisis had a significant impact on the majority of firms.
"In terms of the economy, which took a turn for the worst. It had an impact on our revenue because less individuals visited the shop, which decreased our sales. Thus, we are currently healing. So everything was set to zero for 2020–21. In fact, the KAMA Conference Center, which used to be so vibrant, ceased to exist, according to Dr. Agyekum Addo.
"We had to lay off a lot of personnel, so from 650, we're down to approximately 120 staff across the country," he continued.
"I must admit, in particular, that practically all of our raw supplies come from outside sources and are paid for in dollars. Due to the fact that we lack the political will to stop imports, we will compete worldwide, giving the imports that are coming in a competitive advantage over us. Therefore, if you have to pay so much money to chase, it means that the price will be influenced.
"Most of these imports also have exemptions, and because of their low taxes and lower pricing than those of locally produced goods, marketing is quite challenging for us local manufacturers. So, we can see that the government is attempting to determine how best to assist.
"For instance, if I produce a liquid product that is roughly 95% water, someone else may also bring in blood tonic, cough syrup, vitamins, and antacids, all of which are liquids. We are pleading with you to halt and limit this because we are only paying for water, which is something we can accomplish. Local manufacturers can be found here.
"So the blood tonic that is imported costs around 10 cedis, and what we make, assuming all other factors are similar, will cost around 12 cedis. How can you compete, so the locals will want to go for a cheaper one for 10 cedi's which is equally as good as the 12 cedi's?"
