Director of Dalex Finance, Ken Thompson, has said that businesses and Ghanaians in general, are going to become poorer in the next 10 years if issues plaguing the economic growth of the country are not dealt with.
According to him, the persistence of issues such as corruption, high interest rates, persistent currency depreciation, overspending by the Government, and weak economic fundamentals, among others will lead to the impoverishment of Ghanaians and the erosion of capital of both foreign and indigenous businesses.
“The economic environment is weak and no longer conducive for businesses, the foreign businesses can see that they can no longer be profitable so of course they will leave.
“The causes of the current unconducive economic environment are poor financial management, weak fundamentals, corruption, overspending, exchange rate volatility, high interest rates and others,” he quipped.
“And you know what, 10 years from now we will become poorer than we started if we don’t deal with these fundamental issues. We will be impoverishing our own people by not dealing with the things I have mentioned,” he added.
Mr Thompson made the assertions while speaking during theNorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Navigating The Business Environment in Ghana: Why Are Businesses Folding Up?”on Sunday, May 12, 2024.
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.
The Government and regulatory bodies must take immediate action to mitigate the impacts of the exit of MNCs which can be achieved by implementing policies that support local businesses, encourage foreign investment, and promote economic diversification.
Speaking further during the X Space Discussion, Mr Thompson averred that Ghana has not delivered on its brand promise of creating an enabling environment for businesses to grow and thrive.
Asserting that, the country must do everything it can to restore its brand image as a conducive environment for businesses on the African Continent to attract investments from both foreign and indigenous businesses.
“The brand Ghana has not delivered on its promise of creating an enabling environment for the private sector to thrive.
“We must do all that we can to restore the Ghana Brand because the brand is damaged and if we don’t fix it, someday our children will curse us,” he remarked.
