Prof. John Gatsi
Professor John Gatsi, an economist and Dean of the University of Cape Coast School of Business, has voiced apprehension regarding the departure of multinational corporations from the Ghanaian economy.
He highlighted the escalating cost of conducting business and the depreciation of the Cedi as detrimental factors driving these companies away.
Recent developments have seen several multinational brands, including French bank Société Générale, announcing their withdrawal from Ghana after nearly two decades of operation. Société Générale has enlisted investment bank Lazard to explore potential buyers for its operations not only in Ghana but also in Cameroon and Tunisia. There are reports suggesting that Absa Bank is considering acquiring these subsidiaries.
The trend of European banks exiting Africa, attributed largely to high cost-to-income ratios, is raising alarms among economists like Prof. Gatsi. He emphasized that such departures often result in significant job losses and signal an unfavorable business environment.
Expressing his concerns on Facebook, Prof. Gatsi questioned the government's response to these developments, particularly given the absence of supportive measures for businesses.
Moreover, he scrutinized statements made by Vice President Dr. Mahamudu Bawumia regarding mineral licenses and the involvement of chiefs in the process. Prof. Gatsi referenced constitutional provisions that indicate chiefs do not hold mineral rights and cannot issue licenses, raising doubts about the promises made during Dr. Bawumia's campaign tour in the Western Region.
Prof. Gatsi's remarks underscore the need for a comprehensive strategy to address the challenges faced by businesses and to foster a more conducive environment for investment and economic growth in Ghana.
Read Prof. John Gatsi's full post below:
Exit from Ghana by Multinational Companies
The entry of International companies into the country was received with gladness because of the positive effect on employment, revenue generation and also because it signaled to other companies of a favorable business environment.
The recent exit or planned exit from Ghana by multinational companies must be a worry for all Ghanaians. The environment is hostile and unsupportive of businesses.
I thought we have a Minister in charge of business development ? What of environment? I thought we have a Minister in charge of industry. Let us be serious. I thought the government should be telling us what is going on.
I thought per Article 257(6) of the Constitution Chiefs do not own mineral rights and thus cannot issue mineral license?
What is really going on? Who is promising Chiefs they will give licenses?
"I bought" a dollar for GHS13.70 from a forex bureau two weeks ago. Am told today l need GHS14.70 to buy one dollar.
What is going on? Who will tell us something?