Multinational companies leave Ghana due to uncomfortable economic indicators – Prof. Mensah

Lord Mensah, a senior lecturer at the University of Ghana Business School (UGBS), says multinational companies are leaving Ghana due to the country’s uncomfortable economic indicators.

This is due to the exit of several Ghanaian multinational companies from the Ghanaian market.

Societe Generale is the latest to announce its departure from Ghana after 20 years of operations in the country. GLOVO stated last week that on May 10, 2024 they will cease operations in Ghana.

According to Glovo, the decision to leave Ghana is aimed at redirecting its resources to other countries where it operates.

“While we recognize the potential of the Ghana market, building a stronger position and achieving profitability would require substantial investment over an extended period. That is why we have decided to redirect our resources to the other 23 countries where Glovo operates to better serve the millions of customers who use the Glovo app every day,” Glovo stated.

Commenting on the development of the Morning Starr program with Francis Abban on Monday, the UGBS senior lecturer stated that there are several reasons for these companies to leave the Ghana market.

“I always say that if we want to know how the country is performing, let’s look at how people are looking for visas to travel out of the country and then also look at companies that are leaving. If you take, for example, the multinationals that come to operate and bring their dollars, once they generate their income in cedis they are not sure how the exchange rate will behave. He pressured them. Also the cost of the inputs they use to do this business.

“So if your economy is not doing well, the sign and what you should look for is how businesses develop and disappear,” Professor Lord Mensah said.

According to him, businesses in West Hill Mall that were foreign-owned have moved out over the past three years.

“That’s why I always tell my friends that things are not good on the ground because if you really want to look at the signs and performance of a country, maybe you have to look at how the country attracts foreign direct investment and then immigration, how people resort. have opportunities to move.

“The more some of these numbers go up, it tells you that things are not good on the ground, so I am not surprised that these companies are leaving and Ghana is one of the countries that they prioritize leaving the continent. Because the country-specific indicators that would give comfort to companies are not good at all,” said the UGBS professor.