Government cum business

Should the Government Compete with Private Enterprises?

Why is the Office of the Vice President getting involved in launching a private enterprise? His role should be as a guest of honor, not as an entrepreneur. This raises some critical questions. Isn’t the government’s responsibility to protect and support businesses that invest heavily in Ghana, rather than compete against them? What benefit does the government gain by entering an already competitive market?

Consider this: Ghana already has several well-established ride-sharing platforms, including Uber, Bolt, and Yango. These companies face significant challenges to keep their operations efficient, particularly due to issues like poor road infrastructure and inconsistent connectivity. The government’s involvement could tip the scales unfairly.

In my view, this is an inappropriate overlap of public and private interests, and I am not confident it will lead us in the right direction. These established ride-sharing companies provide a source of income to tens of thousands of drivers and create jobs across multiple sectors. A new government-sponsored app could destabilize these livelihoods, affecting both earnings and job security for those who rely on this industry.

What if tomorrow these three major companies decided to pull out of Ghana? What would happen to the economy and the people who depend on it? Instead of competing, the government would be better off supporting these businesses by improving infrastructure and helping them expand into underserved areas. Competing against these industry giants is unlikely to end well, especially when the expertise required to manage such a venture is lacking.

One of the government’s selling points is the promise of lower commission fees for drivers, but history doesn’t inspire confidence. It’s hard to find a government-managed, publicly funded business that has succeeded in creating long-term wealth. The prospects for this new initiative don’t seem promising.

I hope the next administration, regardless of political affiliation, will respect the boundaries between public initiatives and private enterprise. Government involvement should focus on creating an environment where businesses can thrive, not in taking over markets.

This current path leads in precisely the wrong direction.