The Food and Beverages Association of Ghana(FABAG) has revealed that more businesses are working on moving out of Ghana.
The General Secretary of FABAG, Samuel Aggrey, said that those who want to stay have planned to reduce their workforce as part of measures to deal with the challenging economic environment.
“It has been a very difficult decision for most of these businesses, and if the government does not take steps to deal with their concerns, they will not be left with any option than to relocate,” he warned.
This follows several multinational companies, including Societe Generale and Glovo, indicating they are exiting the Ghanaian market this year.
According to a notice issued by Glovo, the company will exit Ghana on Friday, May 10.
The company explained that it was leaving because making a profit in Ghana had become difficult.
“Whilst we recognize the potential of the Ghana market, building a stronger position and achieving profitability would require substantial investment over an extended period. This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates to better serve the millions of customers who use the Glovo app every day,” Glovo stated.
It said achieving profitability would require substantial investment over an extended period.
Some economists have explained that the companies are leaving the country because specific indicators that would make businesses comfortable are not looking good.
FABAG added that companies that had already left made the decision after several engagements with the government and other agencies, which did not yield the desired outcomes.
Mr. Aggrey pointed out, for example, that cedi’s perennial depreciation has also not been helpful, a major contributory factor to business exits.
He disclosed that the government has not done enough to support firms that are operating in the country from the negative impact of cheap imports.
“The situation is getting very bad; most of these firms have to deal with unreliable utility supplies,” he said.