Serious concerns are being raised against the likelihood of many mobile phone industry players folding up their businesses soon, as Chinese nationals virtually take over the distribution the mobile phone businesses in Ghana.
This paper has established that Mobile Zone who is the franchise holder of TECNO phones has signed a contract with E-Gate Development Ghana with 49 and 51% shares ownership respectively to now distribute this time not only the TECNO phones, but two other phones brands; ITEL and INFINIX.
This paper’s investigations have established that the E-Gate is the manufacturing company for these products and the only intention is to kick the local players out of business.
AROMA, a new company has also emerged to take up the distribution of accessories moving from shops to shops at the price far lesser or the same as the price that is given to them by the local business men.
These new companies are moving from shop to shop registering companies with codes to identity potential customers for direct distribution as against their Ghanaian competitor.
Industry players are in fears that, since these companies are the manufacturing companies the local business men are likely to lose out of business if there is no intervention.
Interestingly, these companies are operating against the laws of Ghana that prohibits foreign investors to enter into direct distribution.
Being conscious of that, these Chinese companies and businessmen have devised strategies of operating under the disguise of a Ghanaian partner, to the detriment of local distributors.
Meanwhile, there are currently about 25 Chinese nationals in Ghana at the Company head office at the Darkoman junction with their HR also being a Chinese national.
However, some of the traders who spoke on anonymity for various reasons, expressed dissatisfaction at the development and are appealing to the appropriate authorities such as GIC, Trade ministry among others to intervene.
They also called on the especially Nana Akufo-Addo's government that has promised to enhanced the local business to boost development and employment to as a matter of urgency intervene so as to enable them keep their businesses.
They said anything short of that will completely push local distributors out of business and create a situation of unemployment which will retard the progress of the nation.
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