Protecting local businesses: Pillar for economic growth

In recent years, Ghana has seen a troubling trend that puts the future of its economy at risk—an inclination within civil society and even among some citizens to prioritise foreign businesses over local enterprises.

While foreign investment brings undeniable benefits, it should not eclipse the importance of nurturing and supporting Ghana’s local businesses, which are vital for long-term sustainable growth.

As a business leader committed to Ghana’s future, I urge us to reevaluate how we treat our local entrepreneurs compared to their foreign counterparts.

The success of our economy depends on our ability to foster an environment where local businesses can thrive.

The challenges of an uneven playing field
Foreign businesses frequently receive preferential treatment that local entrepreneurs do not, such as tax incentives, streamlined regulatory processes and easier access to capital.

Conversely, Ghanaian businesses face significant challenges, from bureaucratic red tape to high interest rates and limited financing options.

This discrepancy creates an uneven playing field that stifles local growth and advantages foreign businesses, which ultimately hampers Ghana’s economic development.

Local businesses are embedded in Ghana’s economy, supporting critical supply chains, creating jobs and investing in their communities.

When economic hardship strikes, local businesses are the ones who remain steadfast, often at significant personal and financial risk. We saw this resilience during the COVID-19 pandemic, which brought economic activity to a standstill.

While many multinationals scaled back operations or withdrew from the market, Ghanaian companies shouldered the responsibility of maintaining critical services and filling gaps left by foreign withdrawals.

This experience is a powerful reminder of why supporting local businesses is essential to creating a resilient and self-sustaining economy.

Case study:Impact
A prominent example of local resilience is the Jospong Group of Companies.

Originally focused on waste management, Jospong has diversified its operations to include sectors like manufacturing, real estate and financial services, supporting thousands of jobs and creating value across multiple industries.

This ability to expand beyond its initial focus is a testament to the entrepreneurial spirit driving local growth.

Such businesses are not only generating profits within their sectors but also reinvesting those profits into the broader economy, leading to greater job creation, new skills development and long-term economic benefits for the nation.

Similarly, companies such as McDan Group, Despite Group and FirstSky Group have grown into multi-sector conglomerates, creating thousands of jobs and supporting countless livelihoods.

Their success illustrates the powerful role that local businesses play in diversifying and strengthening the Ghanaian economy. These businesses have gone beyond their initial industries, branching out to cover new areas and fill existing gaps, creating more opportunities for Ghanaians and bolstering economic resilience.

The question we must ask ourselves is this: How many foreign businesses or business leaders have succeeded and then branched out into other sectors of our economy?

The examples are few and far between. Foreign businesses often concentrate on single sectors and are more likely to exit during economic downturns, taking their investments and jobs with them. Local businesses, however, continue to be present and active even in challenging times.

This difference underscores why fostering local business growth is essential to creating an economy that is stable, resilient and less vulnerable to global shifts.

Role
Civil society organisations (CSOs) and the general public play a crucial role in shaping perceptions and attitudes toward local businesses.

However, instead of rallying behind these homegrown enterprises, there is often an environment of scepticism.

Local businesses face harsher scrutiny, scepticism and criticism compared to foreign firms, perpetuating the misconception that “foreign is better.”

This negative perception hinders local enterprises that are critical to our national economy, creating an environment that undermines their growth and discourages public trust.

This trend stems partly from a historical bias toward foreign investment. For decades, attracting foreign companies was seen as a primary marker of economic progress.

While foreign businesses undoubtedly bring capital, skills and technology, it is time to reassess this outlook and prioritise local business growth as a more sustainable approach to long-term development.

Foreign investments may offer short-term boosts, but local businesses contribute to sustained economic resilience and social stability.

An example of civil society advocacy: The Ghana National Chamber of Commerce and Industry

One CSO actively supporting local business interests is the Ghana National Chamber of Commerce and Industry (GNCCI). The GNCCI advocates fair policies, reduced regulatory burdens and financial support tailored to Ghanaian entrepreneurs.

Its initiatives aim to create an enabling environment where local businesses are protected and empowered to grow, especially in sectors where they directly compete with foreign players.

By fostering public awareness of the importance of supporting local enterprises and lobbying for policy reforms, the GNCCI is reshaping perceptions and encouraging a more supportive attitude towards Ghanaian businesses.

The GNCCI also works to bridge the gap between the public and local businesses through programmes that promote collaboration, skills development and entrepreneurship. These initiatives help equip local entrepreneurs with the tools they need to succeed and navigate challenges unique to Ghana.

Through such efforts, the GNCCI is contributing to a shift in public perception, reinforcing the idea that Ghanaian businesses are worthy of trust, support and investment.

Local businesses in Ghana face significant obstacles that foreign companies often avoid, particularly in the areas of financing, infrastructure, and regulatory complexity. Access to affordable capital is a major hurdle for Ghanaian entrepreneurs.

While foreign companies can often secure funding from international sources, local businesses are constrained by domestic financing options, where high interest rates and limited access to credit make growth difficult.

This disparity prevents many local businesses from scaling their operations and competing effectively with well-capitalised foreign enterprises.

Infrastructure gaps also hinder local growth. While some progress has been made, many parts of Ghana still lack reliable electricity, efficient transportation networks, and widespread technological access. Foreign companies, with their substantial resources and global networks, are often better equipped to navigate these obstacles.

In contrast, smaller local businesses struggle with the high costs and inefficiencies that these infrastructural limitations impose, which can make it challenging for them to operate at full capacity.

Finally, local entrepreneurs must contend with a regulatory environment that is often bureaucratic and slow-moving.

Navigating complex processes to register businesses, acquire permits, and access government services consumes valuable time and resources, slowing down growth and putting Ghanaian companies at a disadvantage.

While some foreign companies receive expedited treatment or even exemptions from certain requirements, local businesses are left to deal with these obstacles on their own.

Support
The success of local businesses is critical to Ghana’s long-term economic sustainability. When a Ghanaian business succeeds, it does not just create wealth for its owners—it creates jobs, strengthens supply chains and contributes to community development.

Local businesses reinvest their profits into the local economy, helping to build schools, hospitals and other essential infrastructure. They are deeply embedded in the fabric of our society and their success is our success.

Supporting local businesses is not just about creating an environment that allows them to survive; it is about creating one that allows them to thrive. This means revisiting policies that favour foreign businesses at the expense of local ones.

It means ensuring that Ghanaian entrepreneurs have access to the same level of financial support, regulatory ease and public trust that foreign businesses enjoy.

The writer is a media & political communication analyst/currently lecturer, University of Media, Arts & Communication.