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Simon Madjie urges businesses to avoid reliance on government contracts
•2 min read•1 source
Simon Madjie, the Chief Executive Officer of the Ghana Investment Promotion Authority (GIPA), has urged local businesses to move away from a heavy reliance on government contracts to secure their long-term growth. Madjie emphasized that the true measure of a company’s sustainability lies in its ability to operate independently of political affiliations or the specific cycles of government administration. He cautioned that over-dependence on the state leaves many firms vulnerable to external shocks that often accompany transitions in power.
He noted that building a business model primarily focused on state-led procurement creates a structural weakness. When political leadership shifts or policy priorities change, businesses that depend on these contracts often face significant financial instability or stagnation. Madjie suggested that Ghanaian entrepreneurs should instead focus on creating competitive value propositions that appeal to the private sector and international markets, which offer more consistent and predictable environments for expansion and investment.
By fostering independence from the state’s fiscal activities, Madjie argued that the private sector can become a more resilient engine for national economic development. He encouraged business owners to innovate and diversify their service offerings, ensuring that their success is driven by market demand and operational excellence rather than political proximity. This shift, according to the GIPA head, is essential for building a robust investment landscape that can withstand the political transitions inherent in a democratic system.
