GIHOC Distilleries, one of Ghana’s oldest state-owned manufacturing firms, is facing a troubling mismatch between its soaring workforce numbers and declining productivity raising urgent questions about operational efficiency and the future direction of its management and labour structure.
Acting Chief Executive Officer, Jones Borteye Applerh, has raised the alarm over what he describes as an unsustainable staff-to-output ratio. In a recent disclosure, he revealed that the company’s workforce nearly doubled in four years from 270 staff in 2020 to 520 in 2024 while production sharply declined from 625,000 cartons per year to just 275,000.
“In 2020, we had a staff strength of about 270, and we were producing about 625,000 cartons a year. In 2024, we had a staff of 520 and our production reduced to 275,000 cartons, so it means when it comes to efficiency to boost our revenue, there’s a lot to be done,” Applerh told the media.
This revelation comes as GIHOC grapples with a staggering debt burden exceeding GH₵427 million, casting a shadow over its financial sustainability and operational viability.
The CEO hinted at imminent restructuring, including possible retrenchment, to right-size the organization in line with current output and revenue realities.
“Certainly, we will have to rationalize and make sure that our costs are within the levels that we can contain,” he stated, suggesting that a major internal realignment may be necessary.
Applerh emphasized that reviving GIHOC will require more than just capital injection and debt relief it demands a re-calibration of human capital and a shift in operational focus.
“Stabilising the company’s finances and returning to profitability will require not just equipment upgrades and debt restructuring, but also a workforce that reflects the company’s current output needs,” he added.
Industry analysts believe the situation signals a need for not only policy re-calibration, but potentially a deep managerial overhaul. With GIHOC’s declining output, ballooning costs, and mounting debts, experts argue that a new strategic direction is crucial one that balances workforce optimization with modernization, market reorientation, and performance-driven governance.
As Ghana intensifies its industrial transformation agenda under the Reset Programme, GIHOC’s struggles present a cautionary tale about inefficiency in state enterprises and the urgent need for productivity-linked reforms.
