An economist and chartered accountant has stated that new businesses will take over from all the multinational companies that have exited the Ghanaian market.
He admitted that the decision by these companies to exit our market is a challenge we have to address since their existence created job opportunities, gave us goods and services, and most importantly, paid taxes to the state.
He, however, maintained that while some of these businesses are leaving Ghana, new ones will take over in two places.
Over the last few months, several multinational corporations have announced their desire to exit the Ghanaian market, claiming a variety of reasons, the most recent being French Bank Société Générale.
The bank, which has operated in Ghana for over 20 years, says it is no longer interested in operating in Ghana.
Other brands, such as Glovo, Nivea, Jumia Foods, Unilever Ghana’s Lipton Tea, Dark and Lovely, Bet 365, Game, and BIC, have also taken a decision to exit the Ghanaian market.
The situation has generated mixed reactions, with some describing it as a threat to the economy.
But Dr. Anomah argued that the reasons for their exit could be varied and not necessarily a measure of how well the economy was performing.
Some companies, like Société Générale, are focusing on new markets, not because they are not making profit, but because they are making strategic decisions to expand their reach.
The bank, he said, is leaving the African market entirely, and so it cannot be attributed to how the local economy was performing.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, the food delivery market boomed when COVID-19 hit us and we went into lockdown.
The market, he said, has dropped following the competition and introduction of new brands, and people are no longer ordering food online because of the cost involved.
“JUMIA took advantage of the food delivery market during the COVID-19 era. But after COVID-19 dropped, we saw more competitors in the market, and yet, the demand for online food delivery services dropped. The demand has dropped, so they cannot make a profit and have decided to withdraw from it. We should understand these factors. While they are leaving, others are taking over.
Another example is BIC. The impact of China is the reason why they are leaving. China is facing tough competition by producing competitive products, and because of that, BIC is no longer making profits and has lost its monopoly. The market is reacting to them. The economic conditions are a factor. I cannot exclude that from it,” he said on Nyankonton Mu Nsem on Rainbow Radio 87.5FM.
He stressed that we should not attribute the economic conditions as the only reason for the exit of these businesses since there are other factors that are pushing them out of Ghana.
“While they are going, others are buying them. ABSA Bank has expressed interest in buying French Bank Société Générale. The economic conditions may be a factor, but there may be other factors. I will advise the multinational companies to plan well. They should have plans to come and stay, not to come and make money to run away. They are also part of the reasons why our cedi keeps depreciating against the dollar and other major currencies.”
By: Rainbowradioonline.com/Ghana
