Over the past few months and the last few years, Ghana has experienced a wave of closures from major international companies that previously provided services to Ghanaians.
These companies’ abrupt cessation of operations is attributed to various factors that have compelled them to exit the country swiftly.
Ghana’s challenging economic terrain has emerged as a primary threat leading to the departure of these companies and the cessation of their services within the country.
Since 2022, unstable economic conditions in Ghana, marked by the fluctuating value of the Ghanaian Cedi, high inflation rates, and soaring costs of imports, have prompted many international corporations to relocate their operations elsewhere.
The adverse effects of these economic challenges have had a significant impact, rendering many jobless and creating uncertainty in the business environment.
Furthermore, Ghana’s energy sector struggles, characterized by frequent power outages, have added to the complications faced by businesses operating in the country.
The departure of these well-known multinational companies has not only affected job creation but also had a noticeable impact on Ghana’s GDP and tax revenues.
The absence of these companies has left a void in the business landscape, disrupting various sectors and raising concerns about the country’s economic stability.
Here are 8 popular companies that have ceased operations and exited Ghana:
GAME
Game, the multinational retail chain, closed its branch in Accra Mall by December 2022.
This decision aligns with Massmart’s earlier announcement to shut down eight unprofitable stores across Africa due to difficulties in securing buyers or investors for its assets.
Having been a fixture in Ghana’s retail scene for over six years, Game offered a wide range of products from household essentials to appliances.
However, challenges faced by Massmart, Game’s parent company, required strategic adjustments to mitigate losses and streamline operations.
In 2021, Massmart revealed plans to divest itself of 14 Game stores across Africa due to financial pressures, including a narrow half-year profit margin.
Despite ongoing efforts, as of October 5, 2022, the company struggled to stabilize its financial position amid volatile market conditions and subdued consumer demand.
The closure of Game’s Accra Mall branch reflects the broader challenges confronting retailers in Africa’s evolving market.
As companies navigate economic uncertainties and changing consumer preferences, strategic decisions like store closures become necessary to ensure long-term sustainability and adaptability.
NIVEA
Nivea, a globally recognized skincare brand, recently announced the closure of its marketing operations in Ghana, effective from December 2023.
This decision signifies the conclusion of Nivea’s era in the Ghanaian market and has spurred discussions on the reasons behind this move and its impact on consumers and the skincare sector.
The closure of Nivea’s marketing line in Ghana was attributed to the country’s high taxes and the costly nature of operations.
The company highlighted strategic considerations, emphasizing the importance of streamlining operations and prioritizing markets where sustainable growth and profitability can be achieved.
JUMIA FOODS
Jumia, a prominent e-commerce platform operating across Africa, recently announced the discontinuation of its food delivery service, Jumia Food, effective from December 2023.
This decision stemmed from a comprehensive evaluation of market conditions and economic factors across its operational regions, revealing the unsustainable nature of the food delivery business.
Citing the need for strategic realignment, Jumia emphasized the crucial nature of this decision due to challenges posed by the current economic climate in areas where Jumia Food operated.
As part of its restructuring efforts, the company disclosed plans to ensure a seamless transition for employees previously engaged in the food delivery segment, redirecting them to support Jumia’s robust physical goods operations in affected countries.
This move follows a series of financial setbacks for the company, including a significant 41 per cent year-over-year loss totalling $49.8 million in the fourth quarter (Q4) of 2022.
In response, Jumia implemented cost-cutting measures, resulting in the dismissal of over 900 employees, aimed at optimizing operational efficiency and bolstering financial sustainability.
Jumia’s decision to close its food delivery operations sheds light on the complex landscape of e-commerce and food delivery services in Africa, where companies must navigate diverse market dynamics and economic realities.
While the closure of Jumia Food signifies a strategic shift, it underscores the importance of businesses adapting to evolving market conditions and making strategic decisions to ensure long-term viability and growth.
UNILEVER GHANA
Unilever Ghana’s factory, a longstanding pillar of the country’s industrial sector, has shifted its tea production operations to Nigeria, citing concerns about the current state of Ghana’s economy.
The Minority Leader in Parliament, Dr. Cassiel Ato Forson, highlighted that under President Nana Addo Dankwa Akufo-Addo’s leadership, the relocation of businesses like Unilever Ghana’s tea production is concerning and should raise alarms among Ghanaians.
Ato Forson’s comments reflect increasing concerns about Ghana’s economic stability and its repercussions on domestic businesses.
GLOVO
Glovo, a well-known delivery service provider, has announced that it will stop its operations in Ghana starting on Friday, May 10, 2024.
This decision was communicated through a notice sent to one of its clients, stating that Glovo’s official customer app will no longer accept orders from that date onward.
The reason behind this move, as explained by Glovo, is the need for an “extended period” to strengthen its position in the market and achieve profitability.
Consequently, the company has chosen to reallocate its resources to enhance operations in the other 23 countries where it currently operates.
Despite discontinuing its services in Ghana, Glovo has assured its clients that any outstanding payments will be settled by the company’s terms and conditions, albeit within a reasonable timeframe.
Glovo’s entry into the Ghanaian market was part of a broader strategic initiative within Africa. Back in October 2021, the company invested €25 million ($30 million) to introduce its food delivery services to six African countries, including Ghana.
The launch in Ghana took place in March 2021, accompanied by a commitment from Glovo’s Co-Founder, Sacha Michaud, who pledged an investment of 3.5 million euros during the same year.
However, the decision to cease operations in Ghana highlights the competitive environment and challenges faced by delivery service providers in emerging markets.
Glovo’s exit creates a gap in the local delivery ecosystem, leading to speculation about potential opportunities for other players to step in and fill this void.
As Glovo shifts its focus to other markets, stakeholders in Ghana’s delivery sector will need to assess the implications and adjust their strategies accordingly.
DARK AND LOVELY
The beauty industry in Ghana recently experienced a significant shift as Dark and Lovely, a renowned brand specializing in haircare products, announced its withdrawal from the market.
This move has marked the end of an era for many loyal customers who have depended on Dark and Lovely for their haircare needs over the years.
The news of Dark and Lovely’s departure from Ghana has sparked varied reactions from consumers and industry observers. For some, it signifies a notable loss as Dark and Lovely has been a trusted brand in the Ghanaian beauty scene for decades.
Its absence creates a gap that may prove challenging to fill for those accustomed to its products for their haircare routines.
Dark and Lovely’s decision to exit the Ghanaian market reflects the changing landscape of the industry, characterized by shifting market dynamics and heightened competition.
This departure serves as a reminder of the ever-evolving nature of the beauty industry, where brands must adapt to meet evolving consumer demands and market conditions.
BIC PEN
A renowned pen production company recently made a significant move by relocating to Ivory Coast due to the economic challenges prevailing in Ghana.
For decades, the BIC factory had been a prolific producer of pens in various colors and sizes, catering to the needs of students, professionals, and artists. Its pens had become ubiquitous in classrooms, offices, and homes, leaving a lasting impact on numerous individuals with each stroke of ink.
However, over time, the economic landscape transformed. The cost of doing business in Ghana surged, influenced by factors like fluctuating currency values and escalating energy prices.
The once prosperous BIC factory found itself grappling with escalating expenses, making it increasingly difficult to sustain operations amidst intense competition and narrowing profit margins.
Faced with mounting challenges, the leadership of BIC confronted a tough decision.
BET365
In a surprising development, BET365, one of the world’s leading online betting companies, has announced its withdrawal from the Ghanaian market.
This decision comes as disappointing news for betting enthusiasts in the country and signifies the end of an era for many who have been loyal to this popular international platform.
BET365’s decision to exit the Ghanaian market is primarily attributed to what the company describes as an unsustainable tax burden imposed by the Ghanaian government.
The combination of high taxation rates and regulatory challenges has made it increasingly challenging for the company to operate profitably within the country.
Despite attempts to engage in negotiations with authorities and explore alternative solutions, BET365 ultimately determined that continuing its operations in Ghana was no longer financially feasible.
The news of BET365’s departure has sparked varied reactions from stakeholders within the Ghanaian betting industry.
