Dalex Finance Company’s CEO, Ken Thompson, has castigated the government for its neglect of the private sector, attributing the recent exodus of multinational corporations from Ghana to the administration’s lack of support and focus on the critical sector.
According to Ken Thompson, the prevailing business environment is beset with entrenched challenges that the government has persistently neglected, despite repeated warnings and pleas for reform from various stakeholders.
“The government of Ghana doesn’t care about the private sector. The government doesn’t care about creating jobs. The government is only interested in governments and the people that benefit from their largesse. The government of Ghana does not listen, and anytime we complain, they reel out projects that have been done. ‘We built this block, we built this garden, we built this shop’. Who cares?”
Ken Thompson
Furthermore, he noted that the business environment in Ghana is not one in which any business can thrive, adding that stakeholders’ concerns are often met with irrelevant government responses.
Furthermore, he pointed out that business owners in Ghana are struggling to survive on a day-to-day basis, unable to make long-term plans or invest with confidence, due to the uncertain and volatile business environment.
As such, he lamented that while hard-earned savings have vanished and businesses have been drained, the government remains fixated on padding its own coffers, prioritizing reckless spending and self-interest over the welfare of its citizens.
“So what’s the consequence? Interest rates are high, you can’t do business, the population is poor, so they can’t spend. Infrastructure- critical infrastructure is weak; water, electricity, roads is weak. And where you can find it it’s expensive”.
Ken Thompson’s comments follow the decision of several notable brands, including Nivea, Jumia Foods, Lipton Tea, Dark and Lovely, BET 365, Game, and BIC, to cease operations in Ghana over what they say is the precarious economic environment in Ghana.
The situation has raised concerns about the impact on job creation and economic growth.
The latest to announce the closure of its operations in Ghana is the food delivery outlet, Glovo. The Spanish firm announced last week that it will be exiting the Ghanaian market on May 10, 2024, citing profitability challenges and a reassessment of investment priorities.
Exist Of Companies Consequential
According to Mr. Thompson, the exit of companies will have consequences, not only impacting the livelihoods of countless young and ordinary Ghanaians who rely on these businesses for employment, but also significantly denting Ghana’s GDP, which has benefited substantially from their economic activity.
These multinational firms, particularly in the consumer space, have cited the high cost of borrowing, astronomical taxes, elevated inflation, and perennial exchange rate depreciation as the major reasons for their exit.
Meanwhile, Mr. Ken Thompson stated while some individuals have optimistically suggested that the departure of multinationals will create opportunities for Ghanaian businesses to fill the gap, he believes this scenario is unrealistic and will not provide a sustainable solution for the private sector’s challenges.
As such, he indicated Ghanaian businesses will grapple with the very issues that drove out the multinationals which have the potential to wipe out their capital.
“I’m all for indigenous businesses growing because the only companies that will develop this country, and it’s all over the world, are indigenous businesses. But even if the indigenous businesses take over, we will face the same problems…If you started a business last year with GH₵100,000, it’s not GH₵100,000 now, it’s worth probably GH₵30,000. Who does business like this? How can business thrive?”
Ken Thompson
He further observed that the presence of multinationals in the economy lends credibility to the country, serving as a magnet to attract additional foreign investment, talent, and businesses.
As such, he noted that the departure of these companies signifies an alarming decline in foreign investment, underscoring that private enterprises rely heavily on investment to flourish.
He implored the government to stop perpetuating rhetoric and instead offer tangible, effective solutions to the private sector’s pressing challenges, rather than merely spinning wheels and repeating empty promises.
“Nobody is listening, we’re not interested in projects. I’m interested in how I can plan, have a framework that allows me to plan”. – Ken Thompson
READ ALSO: Kwami Eugene’s Penchant For Sampling People’s Music
