Ghana Faces Economic Turmoil as Major Companies Exit Market

Ghana’s economic landscape is under scrutiny as a wave of notable companies announce their departure from the market over the past few years, raising concerns both domestically and internationally.

Among those exiting are Glovo, Jumia Food Delivery, Nivea, Unilever tea products , Game Shopping Center at Accra Mall, signaling a troubling trend for the nation’s economy.

In an interview with RGGNEWS, Martin Ohene Anim, an Economist, shed light on the underlying issues contributing to this exodus. “Every business comes to a country to make a profit,” he emphasized. “If the economic environment is not conducive, they won’t be able to generate returns for shareholders, leading to their exit.”

Martin Anim pointed out several factors contributing to Ghana’s unfriendly business climate, including high inflation and interest rates, soaring energy costs, and burdensome taxes.

He stressed the urgent need for the government to reduce the cost of doing business, particularly by lowering energy and fuel prices and minimizing tax burdens.

Moreover, Martin Anim highlighted the need for a comprehensive approach to address the challenges faced by businesses, warning that relying solely on monetary policy to control inflation would not suffice.

The Economist painted a grim picture of Ghana’s economic prospects, citing poor performance in crucial sectors like banking, energy, and agriculture.

However, he cautioned that the road to recovery could be long, estimating a timeframe of five to ten years for the economy to stabilize.