President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has put forward a proposal suggesting that the Akufo-Addo administration should actively promote the growth of local companies to offset the departure of multinational corporations from Ghana.
The recent exodus of nearly ten multinational corporations, including prominent brands like Nivea, Glovo, Jumia Foods, Game, and Dark and Lovely, has raised concerns about the country’s business landscape.
During an interview on Citi TV’s The Point of View, hosted by Bernard Avle, Dr. Ayim-Darke emphasized the importance of government intervention to enhance the capacity and competitiveness of local businesses.
He stressed the need for strategic measures to address the challenges arising from the relocation of multinational companies.
“Deliberately build local enterprises to fill in the gap, as others move out, others will fill in the space. So Ghanaian enterprises will stand up to that and they will make deliberate conscious efforts, some might be hand-holding. Because they might not have all the capacity, but technical support in selected priority areas will lead to a balance of payments.
“How do you hold the hands of enterprises deliberately in two or three, four years you can recover easily. The IMF transitional period is flexible, it gives you room for such interventions, and the structure of the economy will begin to change,” he opined.
The President of the AGI emphasized the importance of government policies that regulate the importation of goods into the country. Such policies, he noted, would boost manufacturers’ confidence in a stable market.
“To revamp this economy, one needs to look at the micro stability. For purposes of manufacturing, we must look out for the extent of imports, and let them meet the standards of the Food and Drugs Authority. Once they do, in terms of quality, pricing and invoicing, the Ghanaian companies can compete. The policy should come in quickly in the short term to look at how best you could regulate import lines.
He added, “The extent of imports coming in by virtue of the tax burden and other associated burdens are now allowing the market which is already established. Products are being smuggled in, and oils, flour and other products are under threat. If you don’t bring in policy and regulate them in the short term, to give confidence back to the producers, that your market is secured, they should produce and expand, we will tax you to match the gap because we are in difficulties.”