AGI blames exodus of multinational companies on profit-driven business models

Dr. Humphrey Ayim Darke, the president of the Association of Ghanaian Industries (AGI), has blamed the exit of multinational companies from Ghana on their business models.

He explained that those companies had been impacted by unstable macroeconomic variables, which threatened their growth and profitability because their business strategies were mostly profit-driven.

According to Dr. Darke, the scenario prompted the departure of those international businesses, who prioritized profit over other reasons for investing in the country.

He stated this to determine the elements that may have contributed to the abrupt departure of some multinational businesses from Ghana.

His comments were made in the context of the decision by some international corporations to quit Ghana.

The companies include Glovo, Nivea, Lipton, Dark and Lovely, Bet365, Game, and a slew of other brands.

The companies gave a variety of reasons for leaving Ghana, but the main challenge was the profitability and organizational changes of thier parent brands.

“Most of these multinational companies their primary goal is to make a profit. So, a number of their business models, which originate from the parent company and partners like the Ghana Investment Promotion Centre, have modified over the period as a result of the micro- and macro-economic indicators. It gets to a stage where the model can be challenged because of the volumes,” Dr Darke said.

Mr. Maximus Ametorgoh, a digital marketing consultant, thought the exodus of some companies from the e-commerce field was exaggerated.

He said that food delivery services had the smallest market share of the Ghanaian e-commerce industry; however, the e-commerce space had developed significantly, with estimates indicating $900 million in transactions in 2023.

Mr. Ametorgoh said food delivery services in the e-commerce market have been struggling post-COVID-19.

He advocated the participation of more indigenous businesses in Ghana’s e-commerce sector.