The General Manager of GBfoods Ghana, a leading food manufacturing company and producers of the Gino and Pomo range of products, Mr David Kofi Afflu says businesses in the Fast Moving Consumer Goods (FMCG) sector are currently cutting down on profit margins to ensure stability in prices.
He said soaring inflation and unstable exchange rates were driving up the cost of production although purchasing power remains low, forcing manufacturers to maintain prices at the cost of their profits.
Speaking at a business networking event in Accra last Monday, Mr Afflu said businesses must make quick decisions that align with market sentiments to stay afloat as the economy goes through challenges.
“You can’t be increasing prices because the market doesn’t like that and the market always wins so if you want to win, you must be with the consumer,” he said.
Mr Afflu said as businesses feel the impact of the hard economic conditions, leaders of businesses must remain credible to be able to move the market along with the changes that would be necessary for the growth and sustainability of the business.
He explained that when stakeholders have trust in the leadership of a business, they would stick around even during difficult times and create space for the business to make the necessary adjustments to stay afloat.
“If you have brand credibility over a period of time, your shareholders and customers would trust your adjustments during difficulties,” he said.
Mr Afflu said it was important that some decisions were made with speed to produce the intended outcome and also meet the needs of consumers.
“We need some street smartness because there could be a reward for speed and you would suffer the consequences for delaying to make a decision,” he said.
The business networking session, the first after the COVID 19 outbreak organised by Horizon Offices, brought together leaders of Small and Medium Enterprises (SMEs) to brainstorm the strategies to adopt to remain in business amid the current economic difficulties.
Representatives of Schweppes, Shell, British International Investment, Medtronics, the Dubai Chambers, Askia Immigration among others were present at the event.
While some shared their experiences of difficulties in growing businesses due to the economic challenges, others professed solutions that could help make a difference for SMEs.
The Country Manager of Horizon Offices, Carlis Arko said one of the major challenges facing a lot of businesses today apart from financial capital was office space.
“Getting an office space, which is suitable for our business needs, is always a challenge,” he said.
He said the location and the cost play a very crucial role in the success of the business but most landlords will take a minimum of two years rent advance payment with a fixed floor space.
“We have played a pivotal role in solving this phenomenon.
We pride ourselves as home to Africa’s businesses and provide serviced offices to our cherished clients with a unique preposition-flexibility,” he said.
He added that due to dwindling cash flow, clients of Horizon Offices could pay monthly, quarterly and yearly.
“Once you pay your one month rent, security deposit and a set-up fee, the office is ready to use and your rent is inclusive of office desks and chairs, file cabinet, high speed internet, security, utilities, PABX telephone system, IT support, cleaning services, secretarial support and housekeeping services,” he said.
Horizons Offices Ghana Limited has for the past 10 years positioned itself to help solve challenges for businesses by offering businesses the needed space to operate.
The company provides fully furnished serviced offices within a world class working space in prime locations in Ghana, Kenya and Nigeria.