Mahama pleas multinational companies to stay

Ghana (Commonewealth) _ John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has appealed to international corporations to stay in the Ghanaian market. John Mahama, the presidential candidate of the National Democratic Congress (NDC) in the upcoming elections on December 7th, made this request in response to the decisions of several well-known multinational corporations to leave the country because their survival was being threatened by worsening economic conditions.

His plea is relevant given the recent trend of multinational firms choosing to move their operations out of Ghana as a result of financial difficulties. The Ghanaian economy from 2022 to the present has forced several international corporations should think about moving all or a portion of their company activities overseas.

The biggest food delivery company in Africa, Glovo, is the most recent to go. On May 10, 2024, the Spanish company declared its intention to withdraw from the Ghanaian market, citing issues with profitability and a review of its investment objectives.

Speaking to guests at the 8th Ghana CEO Summit on Monday, May 27, in Accra, Mr. Mahama voiced worries about the possible negative consequences of foreign corporations departing Ghana. The outgoing president emphasized that such exits would negatively affect the development of jobs, the state’s ability to generate income from taxes, and overall economic expansion.

“Amidst the exit of numerous companies, our national debt has reached an astounding 658.6 billion cedis.” However, we must not give up due to the subpar governance that has been in place for the past 75 months.” “I would want to use this occasion to ask you industry leaders to hold off a little bit longer. Don’t leave our nation, please. The proverb goes that the darkest hour is just before dawn,” he remarked.

Furthermore, in the event that the NDC wins the 2024 elections, Mr. Mahama promised to create an atmosphere that is conducive to business activities. He claims that this vow is indicative of the party’s commitment to creating a business-friendly environment that would draw and keep international companies, hence promoting Ghana’s economic development and prosperity.

“The wonderful thing about our democracy is that it gives us the chance to go off course. “You can have confidence that the incoming NDC administration will establish an atmosphere that is favorable for companies to prosper,” he emphasized.

President Akufo-Addo has come under fire from National Democratic Congress (NDC) presidential candidate Mahama for abandoning Ghanaians and denying responsibility for the careless economic mismanagement.

He charged that the administration had caused the nation to enter a “unprecedented” economic catastrophe, driving over 800,000 Ghanaians into poverty.

Speaking on Monday, May 27, at the 8th Ghana CEO Summit held at the Kempinski Hotel in Accra, he stated, “We find ourselves at a crucial and unsettling crossroads today.” Our cherished nation’s economy crumbled and went bankrupt because of the nearly eight years of subpar leadership.

“Despite failing Ghanaians, this administration won’t even acknowledge or accept accountability for the most careless handling of our economy in recorded history. Due to this, over 800,000 Ghanaians are now living in poverty and our country is experiencing an unparalleled economic catastrophe. He brought up the unemployment rate, which increased from 8.5% in 2017 to 14.7% currently.

The rate of unemployment has increased to 14.7% from 8.5% in 2017, which was the highest in the 4th Republic’s history; inflation is above 25%, and interest rates are currently between 30% and 50%. The cedi’s decline looks unstoppable as the exchange rate, which was earlier at 4.00 Ghana Cedis to the US dollar, has crossed the 15 Ghana Cedi mark. Mahama went on to berate the administration for not wanting to reduce spending.

In spite of this, the government is still unconcerned and won’t reduce spending. Rather of investing in the transformative infrastructure that will drive this country ahead, it keeps spending more on making comforts.

He claimed that Ghanaians had become used to the mounting scandals that were being revealed on a daily basis and that corruption had become the new normal for this administration. A number of multinational corporations (MNCs), including Societe Generale, Glovo, Nivea, Jumia Foods, Lipton Tea, Dark and Lovely, Bet 365, Game, and Bic, have left Ghana’s economy in recent years, leaving a negative impact.

This pattern calls into question the nation’s economic stability and emphasizes the importance of diversification. The economy may be significantly impacted by MNC departures in a number of ways, such as job losses, a decline in economic activity, a decline in competition and innovation, a reduction in the supply of goods and services, an increase in consumer prices, and difficulties for local enterprises to fill the void.