🚩EAI PRESS CALL

In recent years, Ghana has witnessed the departure of several prominent businesses, including Glovo and seven others, from its market. These exits raise important questions about the role of government in supporting and retaining foreign investment. Understanding the reasons behind these departures and identifying strategies to prevent future exits is crucial for sustaining economic growth and development in the nation.

Glovo, a popular delivery service, is among the notable companies that have decided to withdraw from the Ghanaian market. While specific reasons for Glovo’s exit have not been disclosed, it is indicative of broader challenges faced by businesses operating in the country.

Other businesses that have exited the Ghanaian market include multinational corporations and local startups, each citing its own set of reasons for departure. Common factors contributing to these exits include regulatory hurdles, high operational costs, market saturation, and unfavorable business environments.

So, what could the government of Ghana have done to retain these businesses and prevent their exits?

Firstly, the government should prioritize creating a conducive business environment by implementing transparent and predictable regulatory frameworks. Streamlining bureaucratic processes and reducing red tape can encourage investment and foster a favorable climate for business growth.

Additionally, the government should address infrastructural challenges such as unreliable power supply, inadequate transportation networks, and limited access to finance. Investing in infrastructure development not only enhances the competitiveness of businesses but also attracts foreign investment and stimulates economic activity.

Furthermore, fostering a culture of innovation and entrepreneurship is essential for nurturing a vibrant business ecosystem. Providing support for startups and small businesses through incubation programs, access to funding, and mentorship initiatives can catalyze economic diversification and job creation.

Failure to retain businesses in the Ghanaian market carries significant consequences for the nation’s economy. Firstly, it leads to loss of employment opportunities, impacting livelihoods and exacerbating unemployment rates. Moreover, the departure of foreign businesses diminishes investor confidence and tarnishes the country’s reputation as an attractive investment destination.

Furthermore, the absence of key businesses like Glovo deprives consumers of choice and convenience, hindering the development of the retail and service sectors. This, in turn, stifles economic growth and limits the country’s potential for prosperity.

The departure of Glovo and other businesses from the Ghanaian market underscores the importance of proactive government intervention in fostering a conducive business environment. By addressing regulatory challenges, investing in infrastructure, and supporting entrepreneurship, the government can mitigate the risks of future exits and promote sustainable economic development. Ghana must learn from these experiences and implement effective strategies to retain and attract businesses, thereby unlocking the nation’s full economic potential.

Signed

William Boadi
Executive Director of Educate Africa Institute (EAI) Educationist, Political analyst, and Social worker.
+233541935106.

EAI: Promoting Quality Education, Ensuring Social Justice.