The precarious economic environment in Ghana, spanning 2022 to date, has compelled many multinational companies to relocate all or part of their business to other countries.

The latest to announce the closure of its operations in Ghana is food delivery gaint in Africa, Glovo. The Spanish firm announced this week that it will be exiting the Ghanaian market on May 10, 2024, citing profitability challenges and a reassessment of investment priorities.

This decision will not only affect the many jobs created by the firm for the young and ordinary Ghanaians, but also its contribution to the Gross Domestic Product (GDP) of the country.

These multinational firms, particularly in the consumer space, have cited high cost of borrowing, astronomical taxes, elevated inflation, and perennial exchange rate depreciation as the major reasons for their exit.  

Their departure will obviously impact negatively on job creation, tax revenue to the state and ultimately economic growth.

Joy Business takes a look at the firms that have so far fully or partially left the shores of Ghana

Glovo

After two years of operations in Ghana, Glovo announced it would cease operations in Ghana on May 10, 2024, citing a lack of profitability and a difficult business environment.

The company that two years ago announced an investment of about €3.5 million ($3.7 million) to expand its operations stated the decision via email to its restaurant partners.

“While we recognise the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time” 

“This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use Glovo app every day,” the delivery platform says via email”, it added.

With this development, Glovo will concentrate on other African markets such as Morocco, Uganda, Kenya, Côte d'Ivoire, and Nigeria.

Unilever Ghana

Unilever Ghana also announced in March 2024 the relocation of its tea production operations from Ghana to Nigeria.

The British multinational firm cited the ongoing economic challenges in Ghana as the main reason.

For a very long time, Unilever Ghana had been producing its famous Lipton tea in Ghana.

The company which produces several Fast-Moving Consumer Goods is one of the biggest manufacturers in Ghana and has consistently cited some economic difficulties that require immediate attention by policy markers.

Jumia

Pan-African e-commerce platform, Jumia, in December 2023, also announced the shutting down of its food delivery venture, Jumia Food.

This was after it had undertaken a comprehensive evaluation of prevailing market conditions and economic dynamics across its operational territories. The evaluation revealed an unsustainable food delivery business.

Referring to the need for strategic repositioning, Jumia stated that the decision was imperative given the challenges posed by the current economic climate in the regions where Jumia Food operated.

The decision follows a series of financial setbacks for the firm, including a significant 41.0% year-over-year loss totaling $49.8 million in quarter 4 of 2022.

Game

The exit of South African retail giant, Game in 2022 also came as a big surprise to many consumers.

The parent company, Massmart, in 2022 decided to close down eight unprofitable stores across Africa. Ghana had encountered an economic difficulty (debt default) that further escalated its woes in 2023.

At the time of its closure, Game was a household name in Ghana, leading in the electronic appliance space. It had become a fixture in the Ghanaian retail landscape for over six years, providing shoppers with a wide range of products spanning from household essentials to appliances.

The closure of Game's branches in some malls in Ghana underlined the broader challenges facing retailers in Africa's evolving market landscape.

Nivea

Nivea is a household name in Ghana that closed its marketing line in Ghana in 2023.

The firm alluded to strategic reasons for the move, though many attributed it to the high cost of business operating environment.

The company described the reason for its exit to streamline its operations and focus on markets where it can achieve sustainable growth and profitability.

Nivea’s exit prompted reflections on the factors behind the move and its implications for consumers and the skincare sector.

Yet again, the nation lost because of the job losses and revenue loss to the State.

Dark and Lovely

Before its exit from Ghana, Dark and Lovely was a super brand in Ghana.

The company also cited a hostile economic environment for its departure from Ghana.

 The development which came amidst a backdrop of shifting market dynamics and increased competition was a shock to some consumers.

The departure of Dark and Lovel served as a poignant reminder of the ever-evolving nature of the beauty industry.