Economist Dr. Samson Anomah says the decision by some multinational companies to exit the Ghanaian market may not necessarily be attributed to the challenges confronting the Ghanaian local economy.
While admitting that there is a possibility that the challenges confronting the economy may have contributed to this, there are several other factors involved.
He explained that there was a need for the government to immediately address the situation because these companies create job opportunities for our people, provide goods and services, tax revenue to the state, and other opportunities.
The economist suggested that the government could potentially assist these companies by engaging them and offering any necessary support.
Beyond these suggestions, he stated that some of these businesses that left the country left because of their own mismanagement and poor business practices.
“Some of these companies are leaving due to a lack of deep planning, financial problems, and poor management. Some of the companies that have left were not caused by the government or our local economy. When establishing a business, you should conduct a feasibility study in order to know if you can sustain your operations, and even if the cedis depreciation is affecting you, you should know how to operate.
Ghana is not the only country struggling or facing an economic crisis. Leaving Ghana for other countries will not guarantee success. Some of these businesses came here after discovering some opportunities. However, these opportunities are eroding due to some challenges or situations, and so they have decided to fold up and leave Ghana since they are not making profits but recording losses. We need to properly examine the reasons why these businesses are leaving.”
He continued that some businesses no longer benefit from tax exemptions like they used to following Ghana’s deal with the International Monetary Fund (IMF).
He noted that we cannot give tax exemptions to the tune of $12 billion and yet struggle to raise $300 million.
“All these things threaten their businesses because it has increased the cost of doing business when their profits margin have reduced drastically. That is why they have decided to leave Ghana. The tax exemptions give these businesses leverage, allowing them to make more profits. But when they no longer enjoy the tax exemptions, it eats into their profits, increases their cost of production, and so they will leave.”
“But some of the reasons are political. I have doubts about why Societe Generale is leaving Ghana. They are moving completely from Africa. If they are moving completely from Africa, then we need to ask ourselves what happened. They have lost their grip. These companies don’t just take decisions when establishing businesses. They are motivated by political policies. If you are a bank operating in Ghana and you claim to be making losses, then it is questionable,” he added.
By: Rainbowradioonline.com/Ghana