Ghanaian businesses are struggling to compete against imported products because many foreign producers operate with stronger support systems and lower production costs, creating an uneven playing field for local industries, Professor Frederick Doe of the Faculty of Management at the University of Professional Studies, Accra (UPSA), has argued.
According to Prof. Doe, the challenge facing local businesses is not necessarily their inability to produce, but the difficult environment within which they operate compared to foreign competitors who often benefit from incentives and subsidies in their home countries.
Speaking in an interview with The High Street Journal, Prof. Doe said Ghanaian businesses are competing against foreign-based companies that often have cost advantages because of the support they receive in their respective countries.
“Ghanaian businesses compete a lot with foreign-based businesses. These foreign-based businesses usually are heavily subsidised in their own countries. They are able to produce at a cheaper cost and they are able to export to Ghana,” he said.
He explained that local producers are often burdened by high production costs, particularly because many businesses rely on imported raw materials. According to him, the additional costs associated with importing these materials eventually affect the final prices of locally produced goods, making them less competitive compared to imported alternatives.
Prof. Doe noted that unless these cost disadvantages are addressed, Ghanaian businesses will continue to struggle to compete effectively in the domestic market.
He argued that government must use policy interventions to create a more supportive environment for local industries by encouraging local production and improving competitiveness.
“The only way we can support that is through policy,” Prof. Doe said.
He explained that while consumers have the freedom to choose what products they purchase, government policies can influence market conditions and strengthen opportunities for locally produced goods. He noted that simply asking consumers to stop buying imported products may not achieve the desired results because purchasing decisions are often influenced by availability, price and quality.
For Prof. Doe, the focus should therefore be on creating conditions where Ghanaian businesses can compete effectively, expand their operations and contribute more meaningfully to economic growth.
