‘Foreign is better’ mentality killing Ghana’s economy — Economist warns

Ghana’s economic progress is being quietly eroded by a deeply ingrained belief that foreign products, names and lifestyles are superior to local ones, Dr Michael Insaidoo, Senior Lecturer at the Department of Economics and Actuarial Science of the University of Professional Studies, Accra (UPSA), has warned.

Speaking in Accra, Dr Insaidoo said this mentality, rooted in colonial influences that glorified imported lifestyles, has become embedded in consumer behaviour, identity preferences and tourism patterns.

The result, he explained, is a cycle that undermines local industries, drains foreign exchange reserves and weakens the cedi.

“Many Ghanaians unconsciously associate foreign products with prestige and success while seeing local alternatives as inferior. This crisis of confidence translates into economic dependency that stifles growth,” he said.

Trade statistics reveal that the country spends billions of cedis annually on imported goods ranging from food and cosmetics to textiles and hair products, many of which could be produced locally.

Dr Insaidoo pointed to the booming artificial hair market, where imports are valued at hundreds of millions of dollars, as a glaring example.

Instead of developing a domestic industry to create jobs and retain revenue, he lamented that consumer preference for foreign wigs and weaves continues to channel significant funds abroad.

According to him, the economic consequences extend beyond lost employment opportunities. “Ghana’s currency, the cedi, comes under constant pressure as demand for foreign exchange rises to finance imports. This cycle fuels inflation, widens the trade deficit and erodes macroeconomic stability,” he noted.

Tourism, he stressed, is another sector affected by the “foreign is better” mindset. Although Ghana is home to globally recognised attractions such as Kakum National Park, Mole Game Reserve, Lake Bosomtwe and the historic slave castles at Cape Coast and Elmina, many citizens still choose to spend their holidays in Dubai, Europe or the United States.

“When outbound tourism dominates, foreign reserves are drained while domestic tourism struggles to thrive. Local hospitality businesses miss out on opportunities that could create thousands of jobs,” he remarked.

Dr Insaidoo also drew attention to cultural identity, observing that the widespread prioritisation of foreign names over Ghanaian ones subtly erodes national confidence and branding.

“Countries like Japan and South Korea became global leaders partly because they embraced and projected their cultural identity. Ghana cannot compete internationally if it undervalues its heritage,” he argued.

The long-term implications, he warned, include weakened local industries, persistent unemployment, a volatile currency and an underdeveloped tourism sector.

Even more concerning, he said, is the risk of losing the cultural self-belief necessary to promote Ghanaian products and services globally.

To reverse the trend, Dr Insaidoo called for a collective change in mindset supported by strong policy measures.

He urged a revitalised “Made in Ghana” campaign that highlights not only patriotism but also the quality and competitiveness of local products.

Dr Insaidoo further recommended tax incentives, subsidies and affordable credit to boost local production, alongside aggressive promotion of domestic tourism.

Equally important, he said, is visible leadership. “Our leaders, celebrities and influencers must be seen using Ghana-made goods, holidaying locally and proudly projecting Ghanaian culture. Without this, policies alone cannot change attitudes,” he stressed.

For him, the message is clear: “Every imported product chosen over a Ghanaian one, every holiday taken abroad instead of at home and every signal that foreign is better represents lost opportunities for our economy. Ghana must believe in Ghana to unlock its true potential.”