List of International Companies That Have Closed Operations in Ghana – Here’s WHY

For some months and years now, Our country, Ghana, has had soo many international companies close their operations. In this blog post, we shall discuss about the not-only-one factor which has led to these businesses moving out of the country.

Ghana’s economic turbulence is one of the major reasons, infact, a primary reason for these companies to moving out.

From 2021, Ghana’s economy has not been stable for both the citizens and even the government as well. This has led to an unfavorable condition for businesses both international and local ones.

The harsh economy in Ghana has not only affected businesses but also led to a high unemployment rate.

Furthermore, Ghana’s energy sector struggles, characterized by frequent power outages, have added to the complications faced by businesses operating in the country.

Moreover, Our Power and Energy Sector struggles ‘Dumsor’, has caused complications for businesses to operate in Ghana. ‘Dumsor’ means ‘black out’ or ‘lights Out’. There are instances where Dumsor occur in the whole of a region, eg. Accra township.

The exit of these International companies has not only led to unemployment but also low tax revenues for government. It has also had an influence on our GDP.

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.

The exit of these International companies has left a void that can be filed, but are you ready to carry the burdens faced by previous international companies?

Here are international companies that have ceased operations and left Ghana:

GAME

The branch of Game in Accra Mall was closed by the multinational retail chain by December 2022.

This move was in alignment with an earlier announcement by Massmart to close eight unprofitable stores across Africa, driven by the challenges of securing buyers or investors for its assets.

A staple of Ghana’s retail landscape for more than six years, a wide range of products from household essentials to appliances were offered by Game.

Nevertheless, strategic adjustments were necessitated by the challenges faced by Massmart, the parent company of Game, to mitigate losses and streamline operations.

In 2021, plans to divest from 14 Game stores across Africa were disclosed by Massmart, prompted by financial pressures, including a narrow half-year profit margin.

Despite ongoing efforts, the company was found struggling to stabilize its financial position as of October 5, 2022, amid volatile market conditions and subdued consumer demand.

The closing of the Accra Mall branch of Game reflects the broader challenges faced by retailers in the evolving African market.

As economic uncertainties persist and consumer preferences change, decisions such as store closures are deemed necessary by companies to ensure long-term sustainability and adaptability.

NIVEA

The closure of its marketing operations in Ghana was recently announced by Nivea, a globally recognized skincare brand, effective from December 2023.

This decision marks the end of Nivea’s presence in the Ghanaian market and has sparked discussions about the reasons for this move and its impact on consumers and the skincare sector.

The high taxes in the country and the costly nature of operations were cited as reasons for the closure of Nivea’s marketing line in Ghana.

Strategic considerations were highlighted by the company, stressing the importance of streamlining operations and focusing on markets where sustainable growth and profitability are achievable.

JUMIA FOODS

The discontinuation of its food delivery service, Jumia Food, effective from December 2023, was announced recently by Jumia, a prominent e-commerce platform operating across Africa.

This decision was the result of a comprehensive evaluation of market conditions and economic factors across its operational regions, which revealed the unsustainable nature of the food delivery business.

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Citing the need for strategic realignment, the critical nature of this decision was emphasized by Jumia, due to challenges posed by the current economic climate in areas where Jumia Food operated.

As part of its restructuring efforts, plans to ensure a seamless transition for employees previously engaged in the food delivery segment were disclosed by the company, 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 totaling $49.8 million in the fourth quarter (Q4) of 2022.

In response, cost-cutting measures were implemented by Jumia, resulting in the dismissal of over 900 employees, aimed at optimizing operational efficiency and bolstering financial sustainability.

The decision to close Jumia Food 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

The tea production operations of Unilever Ghana’s factory, a longstanding pillar of the country’s industrial sector, were shifted to Nigeria, with concerns about the current state of Ghana’s economy cited as the reason.

The relocation of businesses like Unilever Ghana’s tea production under President Nana Addo Dankwa Akufo-Addo’s leadership was highlighted by the Minority Leader in Parliament, Dr. Cassiel Ato Forson, as concerning and something that should raise alarms among Ghanaians.

Comments by Ato Forson reflect increasing concerns about the economic stability of Ghana and its repercussions on domestic businesses.

GLOVO

The cessation of its operations in Ghana, starting on Friday, May 10, 2024, has been announced by Glovo, a well-known delivery service provider.

This decision was communicated through a notice sent to one of its clients, which stated that orders would no longer be accepted by Glovo’s official customer app from that date onward.

As explained by Glovo, the need for an “extended period” to strengthen its market position and achieve profitability is the reason behind this move.

Consequently, the reallocation of resources to enhance operations in the other 23 countries where it currently operates has been chosen by the company.

Despite the discontinuation of its services in Ghana, Glovo has assured its clients that any outstanding payments will be settled according to 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, an investment of €25 million ($30 million) was made by the company 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 underscores 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, the implications will need to be assessed and strategies adjusted accordingly by stakeholders in Ghana’s delivery sector.

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