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In recent years, Ghana has witnessed 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 overshadow 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 re-evaluate how we treat our local entrepreneurs compared to their foreign counterparts. The success of our economy depends on fostering 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 unlevel playing field that stifles local growth and advantages foreign businesses, ultimately hampering Ghana’s economic development.
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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 that 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 for creating a resilient and self-sustaining economy.
Case Study: The Enduring Impact of Ghanaian Enterprises
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 like 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 for creating an economy that is stable, resilient, and less vulnerable to global shifts.
The Role of Civil Society and Public Perception
Civil society organisations (CSOs) and the general public play a crucial role in shaping perceptions and attitudes towards local businesses. However, instead of rallying behind