Badu-Aboagye paints a gloomy picture for local courier businesses as multinationals ‘flee’ Ghana’s economy
As multinational companies have the option to exit Ghana’s harsh business climate to operate in other jurisdictions, local businesses end up collapsing entirely, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has said.
According to him, a number of locally owned courier services that sprung up within the past few years have all folded up due to the high cost of doing business.
He cited one courier company that employed nearly 40 Ghanaians as office operators and delivery riders but closed down due to a lack of patronage and high operation costs.
Speaking on Joy FM on Thursday, Mr. Badu-Agyemang asserted that Ghana is gradually losing its position as a favourable destination to do business in West Africa.
Furthermore, he noted that businesses in the courier sector are bearing the brunt of the harsh economic climate.
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According to Mr. Badu-Aboagye, the purchasing power of the ordinary Ghanaian has significantly dwindled and increasing operation costs have impeded the growth and expansion of the hitherto thriving local courier businesses.
“The businesses that are supposed to operate make profit and take care of their employees so they can also to buy are also collapsing, so generally sending a signal…it looks as if we are, if we have not lost it, gradually losing our position as a favourable investment destination in West Africa”.
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“For those companies to leave it means that the local businesses are suffering but those businesses do not have the option to leave and most of them are dying day-in-and-day-out. Two three four years ago…there were a number of courier companies running around Accra…they are all gone.
He added, “I know one of them that was employing 25 riders and 15 office operators now is totally gone now those people are home.”
“The motorbike they used at that time, the boxer bike, was probably the most cheapest one they were using, it was GHC3,000 – GHC4,000, now it is 20,000 Ghana Cedis, and people are not buying and they’re distributing so you can’t be in business under such circumstances,” he explained.
Meanwhile, the founder of the Pan African Heritage Museum (PAHM), Professor Kojo Yankah, has called for support for indigenous businesses in the wake of reports of expat companies exiting Ghana.
In his view, the exit of foreign companies presents an opportunity for local entrepreneurs.
