AGI blames exodus of multinational companies on profit-driven business models

President of the Association of Ghanaian Industries (AGI), Humphrey Ayim Darke, has attributed the exit of multinational companies from Ghana to their business models.

He explained that these companies had been affected by unstable macroeconomic variables, which threatened their growth and profitability because their business strategies were mostly profit-driven.

According to Dr. Darke, this scenario prompted the departure of those international businesses, which prioritized profit over other reasons for investing in the country.

He stated this in an interview monitored by the Ghana News Agency to identify the factors that may have contributed to the sudden departure of some multinational businesses from Ghana.

His comments were in the context of the decision by some international corporations to leave Ghana.

The companies include Glovo, Nivea, Lipton, Dark and Lovely, Bet365, Game, and a host of other brands.

These companies cited various reasons for leaving Ghana, but the primary challenge was the profitability and organizational changes of their parent brands.

"Most of these multinational companies' primary goal is to make a profit. So, a number of their business models, originating from the parent company and partners like the Ghana Investment Promotion Centre, have evolved over time due to micro- and macro-economic indicators. There comes a point where the model can be challenged because of the volumes," Dr. Darke said.

Mr. Maximus Ametorgoh, a digital marketing consultant, believed the exodus of some companies from the e-commerce field was overstated.

He noted that food delivery services had the smallest market share in the Ghanaian e-commerce industry; however, the e-commerce space had grown significantly, with estimates indicating $900 million in transactions in 2023.

Mr. Ametorgoh observed that food delivery services in the e-commerce market had been struggling post-COVID-19.

He advocated for the participation of more indigenous businesses in Ghana’s e-commerce sector.