Uncomfortable economic indicators driving multinational companies out of Ghana – Prof. Lord Mensah

A senior lecturer at the University of Ghana Business School (UGBS), Professor Lord Mensah has shared his view on why several multinational companies are exiting the country.

Several multinational companies including Societe Generale and Glovo have indicated they are exiting the Ghanaian market this year.

Speaking to Starr FM on the development, Prof. Lord Mensah explained that the companies are leaving the country because specific indicators that would make businesses comfortable are not looking good.

“So I always tell my friends that things are not good on the grounds because if you really want to see the signals and the performance of a country you may have to look at how the country attracts foreign direct investment and then immigration how people turn to have opportunities to move out.

“The more you get some of these numbers going up then, it tells you that things are not good on the grounds so I am not surprised these businesses are exiting and Ghana is one of the countries they prioritize to exit from on the continent. Because the country’s specific indicators that would make businesses comfortable are not good at all,” Prof. Lord Mensah said.

According to a notice issued by Glovo, the company will exit Ghana on Friday, May 10.

The company has explained that it is leaving because making a profit in Ghana has become difficult.

It said achieving profitability would require substantial investment over an extended period.

“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.