John Mahama Urges Multinational Companies to Stay in Ghana Amid Economic Challenges

Former President John Dramani Mahama has appealed to multinational companies to continue investing in Ghana despite the country's economic difficulties. Speaking at the 8th Ghana CEO Summit in Accra on May 27, 2024, Mahama emphasized the importance of these companies to the Ghanaian economy and urged them to remain patient during these challenging times.

Mahama's appeal comes amid a worrying trend of multinational companies departing Ghana as a result of economic challenges. Between 2022 and 2024, several companies have considered relocating their operations to more favorable environments. The latest example is Glovo, a prominent African food delivery service, which announced its departure on May 10, 2024, citing challenges in maintaining profitability and a shift in investment priorities.

The economic stability of Ghana has a ripple effect on the entire African continent, making it a vital issue for regional development. If multinational companies continue to leave Ghana, it could lead to widespread job losses, decreased economic growth, and a decline in living standards for its citizens.

Addressing the potential adverse effects of these departures, Mahama expressed concern over job losses, decreased tax revenue, and a decline in economic expansion. He highlighted the broader implications for Ghana's economic progress, saying, *"Their departure will obviously impact negatively on job creation, tax revenue to the state, and consequently economic growth."*

Mahama acknowledged the dire state of the economy, marked by soaring public debts amounting to 658.6 billion cedis. Despite these challenges, he urged business leaders to hold on a bit longer, stating, 'I use this opportunity to appeal to you captains of the industry to tarry a bit more. Please don't leave our country. There is a saying that the darkest hour is before the dawn.'

Mahama promised to create a business-friendly environment conducive to growth and investment if the National Democratic Congress (NDC) emerges victorious in the 2024 elections. He assured the business community that a new NDC administration would create a supportive business climate aimed at attracting and retaining multinational corporations.

To stabilize the economy, Mahama outlined his priority to restore the value of the cedi through an urgent economic recovery and fiscal consolidation plan. This plan would involve pruning government expenditure, preventing waste and corruption, and boosting revenues by expanding the tax net. He also pledged to continue digitalizing the country's revenue collection and payment systems, with the goal of phasing out cash as a form of payment for all government services by 2028.

Mahama emphasized the need to diversify Ghana's economic base by investing in new areas such as agriculture, agri-business, tourism, light industries, manufacturing, and the creative sector. He believes this would lead to more job opportunities, poverty reduction, and a more robust economy.

Ultimately, Mahama's appeal to investors is a call to action to stay invested in Ghana, despite the current economic challenges. He reassured them that his administration would work towards creating a stable and supportive business environment, promising a brighter future for the country's economy.

Key Takeaways

• Former President John Mahama urges multinational companies to stay in Ghana despite economic challenges.
• Several companies, including Glovo, have left Ghana due to economic difficulties.
• Mahama promises to create a business-friendly environment if NDC wins 2024 elections.
• He outlines plans to restore cedi value, diversify economy, and boost revenues.
• Mahama reassures investors of a brighter future for Ghana's economy.