Ghana’s economic climate is undergoing heightened scrutiny both locally and globally as a wave of companies announces their departure from the market. A primary driver behind this exodus is the precarious state of the Ghanaian cedi, whose depreciation not only erodes profit margins but also compounds challenges for businesses reliant on imports, exacerbating existing inflationary pressures and import costs.
Beyond currency woes, Ghana grapples with energy challenges exemplified by frequent power outages, locally known as ‘Dumsor,’ and soaring utility costs. These disruptions not only disrupt production processes but also inflate operational expenses as companies resort to costly alternatives such as generators.
Amidst these economic headwinds, several notable companies have opted to cease operations in Ghana, citing various reasons from strategic realignment to untenable operating conditions. Pulse.com.gh highlights the departure of six such companies due to economic hardships.
Glovo, a popular delivery service provider, has announced its decision to cease operations in Ghana effective May 10, 2024. Citing the need for an extended period to fortify its market position and attain profitability, Glovo has opted to reallocate resources to bolster operations in its other 23 countries of operation.
Jumia, the prominent pan-African e-commerce platform, has shuttered its food delivery venture, Jumia Food, effective December 2023. The decision follows a comprehensive evaluation of prevailing market conditions and economic dynamics, revealing the unsustainable nature of the food delivery business.
In December 2022, multinational retail chain Game closed its branch in Accra Mall, signaling strategic adjustments amidst financial pressures. Dark and Lovely, a renowned haircare brand, has also bid farewell to the Ghanaian market, citing shifting market dynamics and increased competition.
Additionally, BET365, a leading online betting company, has announced its withdrawal from Ghana due to an untenable tax burden imposed by the government. Nivea, a globally recognized skincare brand, has closed its operations in Ghana due to high taxes and operational costs.
Furthermore, BIC Pen, a renowned pen production company, has relocated to Ivory Coast, driven by economic challenges in Ghana. Even Unilever Ghana, a longstanding industrial cornerstone, has relocated its tea production to Nigeria amidst concerns about Ghana’s economic stability.
These departures underscore the growing apprehension about Ghana’s economic trajectory and its impact on local and international businesses. As stakeholders navigate this turbulent landscape, strategic decisions become imperative to ensure long-term viability and sustainability amidst evolving market conditions.
Glovo
