Businesses that are affected by coup d’etats – Kobby Mensah details

A Senior Lecturer at the University of Ghana Business School (UGBS), Professor Kobby Mensah, has explained that the implication of coup d’etats on businesses is not an all-rounded phenomenon.

He said due to the nature of the different sectors of the economy, some businesses suffer adverse effects while others experience minimal or no effects at all.

According to Prof. Kobby Mensah, the most affected sector turns out to be the tourism sector since patrons and foreign tourists stay out because of fear due to the insecurity that comes with military takeovers.

He said the extractive industry on the other hand thrives during coups because most western mining companies take advantage of the situation to shortchange affected countries.

“There are different types of coups and their implications on businesses, but it must be noted that not every business suffers during coup d’etats.

“The tourism sector suffers the most during coup d’etats, but the extractive sector for instance doesn’t, and this is because some of the Western countries particularly the unscrupulous ones use it as an opportunity to siphon the country’s natural mineral resources at cheap prices,” he was quoted by norvanreport.com.

The marketing lecturer added that the uncertainties that come with coups do not favour the business climate, therefore coups definitely have a lasting impact on the economy.

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