State contracts alone won’t build business giants – GIPA CEO

Ghanaian businesses must develop sustainable growth beyond government contracts to become major players, according to Simon Madjie, Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA). Speaking on JoyNews' PM Express Business Edition, Madjie questioned whether reliance on state contracts guarantees long-term success.

He emphasized that organic growth, rather than government contract dependency, leads to stability. Madjie warned that this dependence could result in businesses driven by political opportunities instead of sound commercial principles, making them akin to political entrepreneurs rather than true business people.

Citing Kasapreko as an example, Madjie stressed the importance of building strong domestic businesses through understanding and developing their value chains. He highlighted that state interventions have historically focused on local businesses through local content regulations, Ghana Exim, and capital-providing agencies. Madjie explained that the new GIPA law now empowers the authority to support Ghanaian businesses investing abroad, aiming to help them enter African and global markets.

As competition intensifies within the African Continental Free Trade Area, Madjie urged Ghanaian companies to pursue international opportunities to bring profits back home. GIPA is actively mapping investment opportunities across districts and regions, organizing regional investment roadshows, and encouraging businesses to explore prospects outside their current markets.

Madjie stressed the importance of supporting local investors for the government's success, asserting that no government can thrive by weakening domestic businesses or investors.