What Iran-Israel tensions mean for Ghanaian businesses
The escalating conflict between Iran and Israel has far-reaching ramifications outside the Middle East. If these tensions grow into a full-fledged conflict, firms in Ghana, despite their geographical distance, could suffer major difficulties.
Ghana's economy is intertwined with global trade, financial markets, and energy supply, so any major geopolitical crisis might have far-reaching consequences.
This article investigates how a probable Iran-Israel war in 2025 could affect Ghanaian company owners.
We will look at critical issues such as trade, energy prices, currency changes, and investor confidence, and provide practical advice to help firms plan and adapt.
Increasing fuel and energy prices
Ghana relies significantly on imported oil and gas. If the crisis impacts Middle Eastern oil exports, worldwide fuel costs may skyrocket. This would result in higher transportation expenses, raising the price of commodities.
Increased manufacturing expenses for manufacturers and agribusinesses. Increased electricity bills if fuel-powered facilities become more expensive to operate.
Business owners should investigate energy-efficient alternatives, negotiate long-term fuel contracts, or diversify their energy sources (such as solar power).
Trade
Many Ghanaian enterprises rely on imports (machinery, electronics, pharmaceuticals) and exports (cocoa, gold, and oil).
A war could cause shipping delays due to increased security checks or restricted trade routes (for example, the Strait of Hormuz). Increase shipping insurance expenses, raising import prices.
Reduce demand for Ghanaian exports as global markets slow. Diversify supply chains by procuring from many geographies and storing vital inventory.
Geopolitical upheavals regularly devalue emerging market currencies. If investors withdraw money from riskier economies such as Ghana, the cedi may fall in value, resulting in increased import costs. Increased inflation reduces customers' purchasing power.
Foreign debt repayment costs more for businesses that use dollar loans. Hold foreign currency reserves or use forward contracts to mitigate currency risk.
Decline
Investors often shun unstable countries, so heightened global uncertainty may diminish foreign direct investment (FDI) in Ghana, delaying economic growth.
Tourism may also suffer when travel hazards rise, affecting hotels, restaurants, and transportation services.
To mitigate these effects, businesses should improve their local client base and consider forming relationships with African investors, who may be more resilient to global upheaval.
This strategy can help to maintain operations and growth in the face of global uncertainty.
Global tensions frequently cause lenders to exercise caution. In response to global market instability, multinational financial institutions and banks may cut lending lines or raise interest rates.
This could result in higher borrowing rates for Ghanaian banks and, by extension, local businesses, limited access to trade credit for businesses that rely on international suppliers, and delays in investment choices.
A business owner or small corporation looking to expand with a bank loan may encounter higher interest rates or delays in approval, restricting their expansion options.
Potential disruption
Fertilisers, pesticides, and farming equipment are sometimes provided by states indirectly affected by the conflict or through Middle Eastern shipping routes.
If the violence persists, Ghana may face delays or increased costs when importing fertilisers, as well as rising food prices due to higher agricultural costs.
Food supply chain disruptions may result in increased input prices or a decrease in raw material availability, altering pricing and output.
Cybercrime frequently increases amid international conflicts, such as the Iran-Israel war. Ghanaian businesses may become victims of phishing scams designed to obtain financial information, as well as ransomware attacks that halt operations and demand payment.
These risks are exacerbated by increased internet activity and lower vigilance during periods of uncertainty.
To protect your firm, train employees on cybersecurity best practices, avoid clicking on suspicious links or emails, use strong passwords and data encryption, and regularly back up critical data.
Conclusion
While Ghana is not in the middle of the Iran-Israel conflict, business owners should be prepared for potential economic interruptions.
Entrepreneurs may protect their businesses from rising fuel prices, trade delays, currency fluctuations, and investment losses by planning ahead of time.
Diversifying supply chains, finding alternative energy sources, managing foreign exchange risks, and improving cybersecurity are all practical strategies to lower risks.
Staying knowledgeable and versatile will be critical in handling any global crisis in 2025. I will also advise business owners to monitor worldwide news, join industry associations, and engage financial advisors to develop a contingency plan. Ghanaian businesses are better prepared to face external shocks.
The writer is a Lecturer/SME Industry Coach, Coordinator (MBA Impact Entrepreneurship and Innovation) at the University of Professional Studies Accra
ayiku.andrews@upsamail.edu.gh
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@AndrewsAyiku
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