Ghana: Standards Authority Shuts Down Chinese-Owned Firm over Substandard Materials

The Ghana Standards Authority (GSA) has shut down ZxZ Company Limited, a Chinese-owned manufacturer, after discovering the company was using substandard materials in its production process.

ZxZ, based in the Afienya-Prampram district, had substituted polystyrene for the approved polyurethane in the manufacture of sleeping mattresses, posing serious health risks to consumers. This marks a significant regulatory intervention in Ghana’s manufacturing sector, underscoring the country’s stringent compliance requirements for businesses.

The GSA’s action followed public complaints and an intelligence report that triggered an investigation into the company’s operations. Upon inspection, ZxZ was found to be producing a range of goods, including televisions, home appliances, and mattresses, many of which were counterfeits of registered Ghanaian brands.

The GSA determined that the company was neither registered with the authority nor compliant with its production standards.

Speaking to the media, George Kojo Anti, Head of the GSA’s Special Product Unit, noted that ZxZ’s products were illegal under GSA Act 1078 of 2022, as they had not met the requisite certification. Anti emphasized that while Ghana is open to foreign investment, businesses must adhere to local regulations to protect public health and safety.

He stressed that the use of polystyrene in consumer products poses significant risks, and the GSA would pursue legal action, imposing stiff penalties on ZxZ to deter similar practices.

“We are committed to moving businesses from non-compliance to compliance, but the health and safety of consumers are our primary concern,” said Anti. He added that the GSA would intensify its regulatory oversight to ensure manufacturers comply with national standards, calling on other companies to secure proper certifications to avoid legal repercussions.

The GSA’s enforcement actions extended beyond ZxZ, with inspections of other manufacturers in the region. The authority reaffirmed its commitment to protecting consumers and ensuring fair trade practices in Ghana’s manufacturing industry, highlighting the need for public and stakeholder cooperation in maintaining market standards.

This incident highlights the increasing regulatory vigilance in Ghana as the government seeks to balance the influx of foreign direct investment with the enforcement of stringent quality controls in key sectors of the economy.

Source: Norvanreports