In recent years, Ghana has seen a troubling
trend that puts the future of its economy at risk—an inclination within civil
society and even among some citizens to prioritize foreign businesses over
local enterprises. While foreign investment brings undeniable benefits, it
should not eclipse 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 reevaluate how we treat our local entrepreneurs compared
to their foreign counterparts. The success of our economy depends on our
ability to foster 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
unleveled playing field that stifles local growth and advantages foreign
businesses, which ultimately hampers Ghana’s economic development.
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 who 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 to 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 to creating an economy that is stable, resilient, and less
vulnerable to global shifts.
The role of
civil society and public perception
Civil society organizations (CSOs) and the
general public play a crucial role in shaping perceptions and attitudes toward
local businesses. However, instead of rallying behind these homegrown
enterprises, there is often an environment of skepticism. Local businesses face
harsher scrutiny, skepticism, and criticism compared to foreign firms,
perpetuating the misconception that “foreign is better.” This negative
perception hinders local enterprises that are critical to our national economy,
creating an environment that undermines their growth and discourages public
trust.
This trend stems partly from a historical bias
toward foreign investment. For decades, attracting foreign companies was seen
as a primary marker of economic progress. While foreign businesses undoubtedly
bring capital, skills, and technology, it is time to reassess this outlook and
prioritize local business growth as a more sustainable approach to long-term
development. Foreign investments may offer short-term boosts, but local
businesses contribute to sustained economic resilience and social stability.
An example of
civil society advocacy: The Ghana National Chamber of Commerce and Industry
One CSO actively supporting local business
interests is the Ghana National Chamber of Commerce and Industry (GNCCI). The
GNCCI advocates for fair policies, reduced regulatory burdens, and financial
support tailored to Ghanaian entrepreneurs.
Its initiatives aim to create an enabling
environment where local businesses are protected and empowered to grow,
especially in sectors where they directly compete with foreign players. By
fostering public awareness of the importance of supporting local enterprises
and lobbying for policy reforms, the GNCCI is reshaping perceptions and
encouraging a more supportive attitude toward Ghanaian businesses.
The GNCCI also works to bridge the gap between
the public and local businesses through programs that promote collaboration,
skills development, and entrepreneurship. These initiatives help equip local
entrepreneurs with the tools they need to succeed and navigate challenges
unique to Ghana. Through such efforts, the GNCCI is contributing to a shift in
public perception, reinforcing the idea that Ghanaian businesses are worthy of
trust, support, and investment.
Challenges
faced by local entrepreneurs
Local businesses in Ghana face significant
obstacles that foreign companies often avoid, particularly in the areas of
financing, infrastructure, and regulatory complexity. Access to affordable
capital is a major hurdle for Ghanaian entrepreneurs. While foreign companies
can often secure funding from international sources, local businesses are
constrained by domestic financing options, where high interest rates and
limited access to credit make growth difficult. This disparity prevents many
local businesses from scaling their operations and competing effectively with
well-capitalized foreign enterprises.
Infrastructure gaps also hinder local growth.
While some progress has been made, many parts of Ghana still lack reliable
electricity, efficient transportation networks, and widespread technological
access. Foreign companies, with their substantial resources and global
networks, are often better equipped to navigate these obstacles. In contrast,
smaller local businesses struggle with the high costs and inefficiencies that
these infrastructural limitations impose, which can make it challenging for
them to operate at full capacity.
Finally, local entrepreneurs must contend with
a regulatory environment that is often bureaucratic and slow-moving. Navigating
complex processes to register businesses, acquire permits, and access
government services consumes valuable time and resources, slowing down growth
and putting Ghanaian companies at a disadvantage. While some foreign companies
receive expedited treatment or even exemptions from certain requirements, local
businesses are left to deal with these obstacles on their own.
Why we must
support local businesses
The success of local businesses is critical to
Ghana’s long-term economic sustainability. When a Ghanaian business succeeds,
it does not just create wealth for its owners—it creates jobs, strengthens
supply chains, and contributes to community development. Local businesses
reinvest their profits into the local economy, helping to build schools,
hospitals, and other essential infrastructure. They are deeply embedded in the
fabric of our society, and their success is our success.
Supporting local businesses is not just about
creating an environment that allows them to survive; it is about creating one
that allows them to thrive. This means revisiting policies that favor foreign
businesses at the expense of local ones. It means ensuring that Ghanaian
entrepreneurs have access to the same level of financial support, regulatory
ease, and public trust that foreign businesses enjoy. And it means changing the
narrative that local businesses are somehow less capable or less trustworthy
than their foreign counterparts.
We must also recognize the immense potential
for local businesses to lead the charge in innovation. Ghanaian entrepreneurs
are already finding ways to solve local problems with local solutions, whether
through technology, agriculture, or service delivery. By supporting these
innovators, we can create a more resilient, self-sufficient economy that does
not rely on foreign investment as its primary growth driver.
A call to
action
As Ghanaians, we must take a hard look at how
we treat our local businesses. We must ask ourselves why we are more willing to
trust foreign businesses with our future than we are to trust our own. We must
recognize that the long-term stability of our economy depends on the success of
local entrepreneurs, who will be here to weather the storms long after foreign
businesses have moved on.
The government, civil society, and the general
public all have a role to play in supporting local businesses. We must advocate
for policies that level the playing field, provide easier access to capital,
and reduce the bureaucratic obstacles that local entrepreneurs face. We must
shift public perception to celebrate the achievements of local businesses and
view their success as a national asset. And most importantly, we must trust in
the capabilities of our own people to drive the future of our economy.
Local businesses are not just important; they
are essential to the growth and prosperity of Ghana. When local businesses
succeed, they create opportunities for all of us. They are the ones who will be
here for the long haul, investing in our communities and building the future we
all want to see. Let us give them the support they need to thrive because when
they do, Ghana will thrive too.
In the words of Mahatma Gandhi, “The greatness
of a nation and its moral progress can be judged by the way it treats its
weakest members.” Let us stand by our entrepreneurs, recognizing their
potential to shape our future and drive our nation forward.
>>>the writer is a media & political
communication analyst. He is currently a lecturer at the University of Media,
Arts & Communication
