'Ghana is gradually becoming a dumping site for foreign companies' - McDan

Dr. Daniel McKorley, the founder and Executive Chairman of McDan Group of Companies, has expressed concern about Ghana's current economic state.

He believes that the country is quickly turning into a dumping ground for foreign mega companies.

He explained that Ghana's heavy reliance on foreign imports is hindering the country's ability to grow its economy and focus on industrialization.

This, he fears, will ultimately result in Ghana becoming a dumping ground for foreign companies.

"We have a small economy and over the years we have been gradually turning into a dumping ground, becoming more of a consuming nation. We are not producing or exporting anything," McDan said in an interview with Accra-based Joy FM.

Regarding the recent departure of multinational companies from Ghana, the businessman predicted that the situation would worsen unless immediate and drastic measures were taken to make doing business in Ghana more attractive.

"It will not improve unless we take drastic steps. As an entrepreneur, I am concerned because foreigners are leaving, which is alarming. But how many local businesses are collapsing every day?" he quizzed.

He also criticized the current tax system, which he believes is suffocating local businesses and urged the government to implement business-friendly tax policies to help local businesses thrive.

Since 2022, unstable economic conditions in Ghana have prompted many international corporations to relocate their operations.

The fluctuating value of the Ghanaian cedi, high inflation rates, and the high cost of imports are major factors contributing to this trend.

Additionally, energy challenges, including frequent power outages known as "Dumsor" and rising utility costs, have further complicated the business environment.

As a result, several well-known multinational companies have ceased operations in Ghana, citing strategic realignment and unfavourable operating conditions.

These departures have not only affected job creation and Ghana's Gross Domestic Product (GDP) but also broader economic growth and tax revenue.

EAN/MA

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