John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has urged multinational companies to remain in the Ghanaian market amidst an ongoing trend of corporate departures due to economic challenges.
His plea was made during the 8th Ghana CEO Summit held in Accra on May 27, 2024.
Ghana’s economic difficulties from 2022 onwards have prompted several multinational corporations to consider relocating their operations.
The latest example is Glovo, a leading food delivery company in Africa, which announced its exit from Ghana on May 10, 2024.
The Spanish company cited profitability issues and a reassessment of investment priorities as reasons for its decision.
During his address, Mahama highlighted the potential negative consequences of such exits, including reduced job creation, lower tax revenue, and hindered economic growth.
He emphasized the importance of multinational companies to the Ghanaian economy and appealed to business leaders to remain patient during these challenging times, quoting the saying, “the darkest hour is before the dawn.”
“I use this opportunity to appeal to you captains of the industry to tarry a bit more. Please don’t leave our country. There is a saying that the darkest hour is before the dawn,” he said.
Additionally, Mr Mahama pledged to establish a favourable environment for companies to conduct their operations if the NDC secures victory in the 2024 elections.
According to him, this commitment reflects the party’s dedication to fostering a supportive business climate aimed at attracting and retaining multinational corporations, thereby stimulating economic growth and prosperity in Ghana.
Ghana’s economy has been hit by the exit of several multinational companies (MNCs) in recent years, including Glovo, Nivea, Jumia Foods, Lipton Tea, Dark and Lovely, Bet 365, Game, and Bic.
The exit of MNCs can have significant impacts on the economy, including job losses, decreased economic activity, reduced competition and innovation, decreased availability of products and services, increased prices for consumers, and struggles for local businesses to fill the gap.
Moreover, the exit of MNCs can also lead to a decrease in foreign investment, which can further exacerbate the economic challenges facing the country.