Ghanaian businesses must stop relying on government contracts to grow - GIPA CEO

The Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), Simon Madjie, has urged Ghanaian businesses against relying heavily on government contracts, warning that such dependence could prevent them from becoming strong and successful companies.

He said businesses must focus on building sustainable operations that can survive and grow without relying on political connections or changes in government.

Speaking on JoyNews, Madjie questioned whether businesses that depend mainly on government contracts could achieve long-term success.

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“The understanding is that should the growth be organic when you become more stable, or should it just be one where the government gives them contracts, and then afterwards, what happens next?” he questioned.

He warned that such dependence could turn business owners into people who rely on political opportunities rather than sound business practices.

“So then they become like political entrepreneurs, and not necessarily business people who are following the principles that will allow their businesses to grow,” he stated.

The CEO cited Kasapreko as an example of a Ghanaian company that has grown by understanding its market and building a strong business, from production to distribution.

He explained that government initiatives, including local content policies and support from Ghana Exim, are intended to help Ghanaian businesses become stronger and more competitive.

“It's to build strong local businesses,” he stressed.

However, he said Ghanaian companies must also look beyond the domestic market and take advantage of opportunities in other African countries, particularly as competition increases under the African Continental Free Trade Area (AfCFTA).

He revealed that the new GIPA law allows the authority to support Ghanaian businesses seeking to invest abroad. He added that investment roadshows are being organised to help local companies identify opportunities across the country's regions.

“We are encouraging Ghanaian businesses to come along to the regions to see the opportunities that are in those regions, as well, so they can also take advantage of them,” he explained.

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Madjie stressed that supporting Ghanaian businesses remains essential to the country's economic growth.

DR/MA

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