In a bold move to protect consumers, the Ghana Standards Authority (GSA) has shut down ZXZ Company Limited, a Chinese-owned firm producing the Moonda brand of mattresses in Afienya. The company was caught using uncertified materials in its products, posing serious health risks to consumers. The shutdown follows a tipoff that led to a market survey uncovering the firm’s illegal operations.
During a special operation led by GSA officials, in collaboration with the Ghana Police Service and the media, it was revealed that the company was using polystyrene instead of the industry-approved polyurethane to manufacture mattresses. Polystyrene, typically used for packaging electrical goods, is not safe for human use, and sleeping on such mattresses could lead to long-term health risks.
Beyond mattresses, the operation also uncovered that the company was illegally assembling televisions, refrigerators, and soundbar speakers under the brand name Asano without registering with the GSA. A Chinese supervisor on-site admitted they lacked the necessary licenses to operate and agreed to close the facility until proper certifications were obtained.
Head of the GSA’s Special Products Unit, George Anti, expressed alarm at the scale of unlicensed operations, underscoring the importance of adhering to approved standards. He stated that the GSA would ensure all substandard products are discarded, and proper materials and certifications are in place before the factory could reopen.
Mr. Anti stressed that while Ghana welcomes businesses, they must comply with regulations. The company faces multiple penalties under the GSA Act, which must be paid before it can resume operations.
The crackdown has sent a strong message to foreign-owned firms operating illegally in Ghana. A random inspection also uncovered a Chinese-owned plastic recycling plant operating without a GSA license in the same industrial zone, further highlighting the issue of unregistered foreign businesses.
The Association of Ghana Industries (AGI) has long expressed concerns over foreign-owned firms flooding the market with substandard goods, which are sold at lower prices than locally produced, high-quality products like Ashform and Latex Foam. This illegal competition negatively impacts local businesses and raises suspicions that firms like ZXZ may not be paying appropriate taxes, further short-changing the state.
To ensure fair competition and protect the interests of local manufacturers and consumers, it is crucial that foreign businesses operating in Ghana comply with the country’s regulations, produce quality goods, and contribute their fair share of taxes.
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