Indigenous firms must outgrow ‘five-year syndrome’

By Christabel DANSO ABEAM

The Executive Chairman of COB–A, producer of Standard Water, has advised that Ghana’s indigenous business landscape must confront its persistent ‘five-year survival challenge’ with stronger research, policy support and deliberate investment in local enterprises.
Delivering remarks at the company’s 30th anniversary celebration, the Chairman, Mr. Divine Otoo Agorhom, called on academia to prioritise research into why many Ghanaian-owned businesses collapse within a few years of operation despite promising beginnings.

“In Ghana – and I believe across many parts of Africa – the narrative is that indigenous organisations rarely go beyond five years. Yet by the grace of God, COB–A is celebrating 30 years today. This should be of interest to research institutions,” he noted.
He stressed the need for evidence-based insights into both failure and success stories within the local business ecosystem, arguing that such knowledge is critical to building resilient, long-lasting Ghanaian enterprises.

The Chairman noted that if Ghana could nurture even 1,000 indigenous firms capable of employing over 1,000 people each, the economic impact would be transformative…. with profits retained within the domestic economy.
As Mr. Agorhom pushes for long-serving indigenous enterprises, he however clarifies that this call does not undermine the importance of foreign direct investment – rather promoting the need for balance.

“As foreign investors come and share space with us, we must also deliberately grow Ghanaian-owned organisations,” – highlighting that COB–A remains a fully Ghanaian-owned entity.
The address further challenged policymakers, researchers and industry leaders to investigate structural barriers that limit the growth of indigenous firms — from access to finance and managerial capacity to market constraints and developing targetted interventions.
According to him, while COB–A has undergone significant structural changes over the years – including a shift in its business model that reduced its direct workforce from over 4,000 to fewer than 50 locally – the company’s broader operational footprint has expanded.

Mr. Agorhom further disclosed that the group now indirectly sustains over 1,500 jobs, demonstrating the evolving nature of modern enterprise models.
Appreciating efforts, the Executive Chairman took the opportunity to thank staff who have been dedicated to the company’s progress – and his wife for being a supportive partner.

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