- Dr. Papa Kwesi Nduom has decried the job cuts in his business empire
- The head of Groupe Nduom wants government to be serious about strengthening local businesses
- Recent crisis in the banking sector has affected all sectors of the informal sector especially local businesses
Group Chairman of Groupe Nduom, Dr. Papa Kwesi Nduom, has responded with shock to the recent job cuts in his empire.
YEN.com.gh had reported on how the media subsidiary of Groupe Nduom has laid off some workers in what looks like a restructuring program.
Affected workers were handed dismissal letters and thus asked to vacate their positions with immediate effect.
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Dr. Nduom described recent developments as 'agonizing' as he condemned the government over failure to attend to the needs and interests of local businesses like Groupe Nduom.
On his Facebook post, Dr. Nduom warned that recent developments in the banking sector could have a trickle-down effect on local businesses who could now face challenges in the access of loan facilities.
The third-time presidential candidate argues the government has a limited chance to save crippling local businesses or risk experiencing massive layoffs in the various sectors of the country's indigenous business.
“At Groupe Nduom, we have over 6,000 employees. Most of them work hard. They have families and they have hopes for a better future. I agonize over even one employee who has to go home because the business cannot support him or her. Once in my life, I had to sell almost everything I owned and cherished and start all over again. But my dignity and knowledge was intact so I bounced back. I will do it all again if I have to. But not everyone has the choices available to me," Dr Nduom revealed.
The banking crisis and trickle-down effects
Some of the critical challenges facing the banking industry in Ghana include the failure of some banks to capitalise adequately, high exposure to government and quasi government institutions such as the oil sector debts, aggressive growth and weak controls.
Nevertheless, the banking industry in Ghana remains relatively solid and robust. As at the end of June 2017, the banking sector comprised of thirty-six (36) banks.
Out of this number, nineteen (19) are domestically-controlled and the remaining seventeen (17) foreign-controlled. Total assets and deposits of the sector stood at GHS 86.72 billion and GHS 54.48 billion respectively as at the end of June 2017.
So far, the recapitalisation deadline of December 31, 2018 has resulted in the collapse of some eight locally-controlled banks - a development which has crippled into massive job losses.
The trickle down effect of these massive layoffs have been the strict management decision by most banks now to reduce the rate at which they lend to businesses for fear of bad loans - a move which has subsequently affected local businesses that need credit facilities to stay afloat.
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