Ghana is currently facing a critical conversation about fairness and the rule of law in its business sector. The recent call by Chief Justice Paul Baffoe-Bonnie for leaders to maintain high moral standards highlights a growing public concern over politicized decision-making. This tension is most visible in the contrasting treatment of two major indigenous firms.
At the heart of the issue is the perception that political proximity determines a company’s survival and growth. While some businesses struggle under regulatory pressure, others seem to navigate significant financial hurdles with ease. This creates a divide between those who build through private risk and those who appear to be enabled by the state.
The numbers tell a striking story, as Engineers and Planners is positioned to take over the Damang Mine despite reportedly owing GHS 168 million to SSNIT and GHS 70 million in provident fund liabilities. Meanwhile, McDan Aviation has been grounded over compliance issues, despite the heavy private investment from Dr. Daniel McKorley. This happens even as President John Dramani Mahama envisioned a Ghana where “private businesses thrive independently, free from excessive reliance on government support.”
When the state appears to be selective in its enforcement, it risks damaging the confidence of both local and foreign investors. Predictability is the bedrock of economic growth, as seen in countries like Singapore and Rwanda. If success is viewed as a result of influence rather than innovation, the entrepreneurial spirit that drives the nation could wither.
The human cost of these decisions extends beyond balance sheets to the communities supported by private philanthropy. Through the McDan Foundation, Dr. McKorley has funded ten schools in northern Ghana and provided critical dialysis machines for the 37 Military Hospital. Weakening such builders through inconsistent state action may ultimately harm the very citizens the government intends to protect.
