Turning crisis into opportunity for national growth

By Prof. Samuel Lartey

Introduction

IN life, crisis is inevitable. Whether we are individuals, families, or businesses, crises test our resolve and push us toward growth. Everyone goes through crises. Og Madino is a motivational teacher.

He elaborates on crisis under three headings: Approaching Crisis, In Crisis, and Recovering from Crisis. He also breaks crises into three distinct classes: Identity Crisis, Reality Crisis, and Mortality Crisis.

By embracing these stages and classes of crisis, Ghanaian individuals, families, and businesses can unlock the power of resilience, drive growth, and ensure sustainability.

Mandino’s insight that failures spend so much time reliving their past mistakes, allowing the beauty of their present to elude them highlights the importance of staying focused on the present.

In Ghana, where economic challenges abound, such as inflation reaching 54.1% in 2023, dwelling on past failures will only prevent progress.

Instead, recognising and responding to crises in real-time ensures that Ghanaians can seize the opportunities within these challenging times.

The Three Stages of Crisis

Mandino’s framework is a reminder that life is a continuous cycle, with everyone either approaching, experiencing, or recovering from a crisis. This understanding is key in a rapidly changing environment like Ghana.

• Approaching Crisis:

When we sense a crisis approaching, such as financial strain or market disruptions, preparation is crucial. For Ghanaian businesses, for example, inflationary pressures in 2023 required early adjustments.

Companies that anticipated rising costs shifted their strategies to remain competitive. Families, too, can adopt early financial discipline, saving and investing ahead of a crisis can help manage the impact of inflation and unemployment, which hit 13.2% in 2023.

2. Experiencing Crisis:

Once a crisis hits, it is essential to avoid focusing on past mistakes. Instead, Ghanaians must look at present solutions. For families facing unemployment or businesses seeing shrinking profits, Mandino’s teaching on the importance of focusing on the current moment is vital.

Ghanaian businesses that leveraged innovation during crises, such as investing in technology and new markets, managed to survive even in tough times, contributing to Ghana’s 3.5% GDP growth in 2023.

3. Recovering from Crisis:

Recovery is a time for reflection, learning, and growth. Those who fixate on what went wrong often miss the chance to rebuild stronger. Ghana’s recovery from the COVID-19 pandemic is a case in point.

Sectors like hospitality and tourism are now bouncing back through innovation, supported by government intervention. This has driven positive economic trends, as businesses implement new strategies to sustain growth and adapt to the evolving market.

Classes of Pains

Everyone goes through crises at different levels of work and life, through Identity, Reality, and Mortality, each presents different challenges but offers valuable opportunities for personal and business growth.

1. Identity Crisis:

For individuals or businesses, an identity crisis happens when the core sense of self or purpose is questioned. Ghanaian businesses often face this when competition intensifies, or market demands shift.

For instance, traditional industries like textiles have struggled with cheaper imports. However, businesses that redefined their identity by focusing on sustainability and innovation, such as fintech firms that grew by 24% in 2022, found new pathways to success.

2. Reality Crisis:

A reality crisis is when individuals or businesses must confront uncomfortable truths about their situation. For families, this might mean realising that their current income cannot sustain rising living costs.

Businesses face reality crises when market conditions change, forcing them to rethink old models. In 2023, agriculture firms in Ghana accepted the need for modern farming methods, ensuring that they remained competitive despite the economic downturn.

3. Mortality Crisis:

The most profound of crises, a mortality crisis, forces us to face impermanence. For Ghanaian businesses, this often manifests in the absence of succession planning. Family-owned businesses that fail to plan for future leadership face closure when founders step down.

In contrast, companies that address this crisis early, like Ghana’s cocoa industry securing sustainability through investments in younger farmers, create long-term stability and contribute to national growth.

Opportunity in Crisis for Ghana’s Growth

Crises are growth opportunities. In Ghana, where economic and social challenges are abundant, embracing these lessons can lead to resilience and prosperity.

For Individuals and Families:

1. Focus on the Present:

Rather than fixating on past financial failures or missed opportunities, Ghanaians should focus on present challenges and solutions. Families that build emergency savings and invest in assets, such as real estate or government bonds, can navigate inflation and rising costs more effectively. This is critical as inflation peaked at 54.1% in 2023, severely impacting household purchasing power.

2. Prepare for Mortality Crises:

Health emergencies are inevitable, but families who prioritise health insurance and invest in preventive care will be better equipped to handle them. Ghana’s healthcare system still faces challenges in affordability and access, but planning for future crises can mitigate their impact.

For Businesses:

1.         Reinvent Identity:

Ghanaian businesses must continuously innovate to remain competitive. Companies like Kasapreko, which reinvented their brand to target both local and international markets, have thrived by adapting to market changes. Ghana’s tech sector, which contributed to 14% of GDP growth in 2023, is an example of the importance of embracing innovation during identity crises.

2.         Plan for the Future:

Succession planning is vital for long-term sustainability. Family-owned businesses should invest in training future leaders to ensure continuity. With Ghana’s economy expected to grow by 4.1% in 2024, businesses that address potential mortality crises now will contribute to long-term economic stability.

Conclusion

This feature reminds us that crises are not just challenges to endure but opportunities to harness for growth. In Ghana, a nation full of potential but also facing economic uncertainties, embracing the stages and classes of crisis is crucial for resilience. By focusing on the present and learning from each crisis, Ghanaians can unlock opportunities for personal, family, and business success. Instead of letting past failures steal the beauty of the present, Ghanaians must seize the moment and move toward a brighter, more sustainable future.