Ghana's economic environment is hostile and unsupportive - Economist on exit of multinational companies

Renowned economist and the Dean of the University of Cape Coast School of Business, Professor John Gatsi, has voiced concerns over the withdrawal of multinational corporations from Ghana.

He highlighted the detrimental impact of the rising operational costs and the depreciation of the Cedi on the business landscape.

Société Générale, a French banking institution with nearly two decades of presence in Ghana, is the latest to announce its departure.

The bank is reportedly seeking buyers for its Ghanaian operations, with Absa Bank potentially interested in the acquisition.

This trend of European banks retreating from Africa is largely due to unfavourable cost-to-income ratios, among other factors.

In a post on his Facebook page on May 4, 2024, Prof. Gatsi warned that such exits could lead to substantial job losses and reflect poorly on Ghana's business environment, which was previously deemed favourable by international investors.

“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 signalled to other companies a favourable 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,” he posted.

He criticised the government's lack of communication on the issue and called for clarity and action from the relevant authorities.

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

ID/MA

Watch the latest edition of BizTech below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

Click here to follow the GhanaWeb Business WhatsApp channel