Exit of multinational companies from Ghana should be a worry for Ghanaians – Economist

An Economist, Professor John Gatsi, has expressed concerns about the exit of some multinational companies from the Ghanaian economy.

The Dean of the University of Cape Coast School of Business lamented the rising cost of doing business and the Cedi depreciation as hostile to businesses.

Ghana’s economic climate has forced some multinational brands to announce a cessation of their operations in the country.

After nearly 20 years of operations in Ghana, French bank Société Générale has decided to withdraw from Ghana.

Société Générale has engaged investment bank Lazard to explore potential buyers for its operations in Ghana, Cameroon, and Tunisia. There are indications that Absa Bank is seriously contemplating acquiring these subsidiaries, sources say.

The departure of European banks from Africa, including Société Générale, is primarily attributed to the high cost-to-income ratio.

However, Prof. Gatsi has observed that the trend should be a worry for all Ghanaians, as the departure of these companies largely leads to job losses.

“The entry of international companies into the country was received with gladness because of the positive effect on employment, revenue generation and also because it signaled to other companies of a favorable business environment.

“The recent exit or planned exit from Ghana by multinational companies must be a worry for all Ghanaians. The environment is hostile and unsupportive of businesses.

“I thought we have a Minister in charge of business development? What of environment? I thought we have a Minister in charge of industry. Let us be serious. I thought the government should be telling us what is going on,” he wrote in a post on Facebook on Saturday.

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He noted, “I bought a dollar for GHS13.70 from a Forex bureau two weeks ago. I’m told today l need GHS14.70 to buy one dollar. What is going on? Who will tell us something?”

Furthermore, the Economist questioned the basis of claims by the NPP’s 2024 presidential candidate, Vice President Dr. Mahamudu Bawumia, suggesting that chiefs would be key in issuing mineral licenses if elected.

“I thought per Article 257(6) of the Constitution Chiefs do not own mineral rights and thus cannot issue mineral license? What is really going on? Who is promising Chiefs they will give licenses?” he quizzed.

The NPP flagbearer spoke to the chiefs in the Western Region as part of his regional campaign tour on Thursday, May 2.

Dr. Bawumia said, “We want to formalise the small-scaling business, but we cannot be successful without the involvement of the chiefs.”