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Société Générale's exit from Ghana will worsen unemployment — Dr. Atuahene

A banking expert, Dr. Richmond Atuahene, has said Ghana's banking sector depicts a sector that has been in a state of crisis for the past ten years.

Dr Richmond Atuahene

Citing the non-performing loans of Ghana's banking sector, which have averaged approximately 16.5% over the last decade, the banking specialist emphasized that ample literature from the International Monetary Fund (IMF) indicated a scenario of a full-blown crisis in Ghana's banking sector.

Dr. Atuahene described the move as worrisome the exit of some multinational brands such as Glovo, NIVEA, Jumia Foods, Game, Dark and Lovely, Bic, BET365, and others due to the economic crisis adding that the exit of these companies will hurt the economy and worsen the unemployment rates of the country.

"It is going to make our unemployment situation worse and you know, SG [Société Générale]has been in the country for twenty years and they have participated in the cocoa syndication and some other businesses but now they are going.

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"It means that they are no more there with the cocoa syndication and they are going with their taxes and so we are not going to get corporate taxes from them and so it will affect our fiscal situation," he said.

Amid the economic hurdles, several notable companies have made the decision to cease operations in Ghana, citing various reasons ranging from strategic realignment to untenable operating conditions.

Meanwhile, John Awuni, President of the Food and Beverages Association of Ghana (FABAG), has urged the government to reconsider its tax system to create space for businesses to flourish. He contended that the existing taxes, such as the Growth and Sustainability Tax, were stifling businesses.

Speaking on Citi TV on Monday, May 6, 2024, Awuni highlighted that multinational companies, including Glovo, Dark and Lovely, Nivea, Jumia Foods, and Bic Pens, had exited Ghana due to an environment that was no longer conducive to their growth and expansion.

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