A growing number of diaspora returnees hoping to invest or start businesses in Ghana are losing significant sums of money.

This often forces them to abandon their ventures and return abroad, according to insights shared by a long-term resident and entrepreneur familiar with Ghana’s business landscape.

In a widely circulated video by entrepreneurship podcaster Derrick Abaitey, he discusses diaspora investment failures and argues that enthusiasm alone — without local knowledge — is one of the biggest reasons many foreign-based Africans struggle when they attempt to do business in Ghana and across Africa.

“Most of the people who lose money are from the diaspora,” he said, explaining that many returnees are inspired by business ideas that work well in Europe or North America and assume those same models will succeed back home. “They get excited about ideas abroad and think, ‘This will work perfectly in my country,’ but that’s not how it works.”

According to the speaker, a key problem is that many diaspora investors were not entrepreneurs in their countries of residence before attempting to launch businesses in Ghana. Without prior experience running a venture, they often underestimate the complexity of local markets and overestimate demand for imported business concepts.

He also stressed that lack of research and cultural understanding plays a major role in business failures.

“They don’t take time to understand whether the business will actually work here,” he said. “You have to understand the people — their buying patterns, their decision-making process, and how they spend money.”

Drawing from personal experience, the entrepreneur revealed that his first business in East Legon failed, resulting in losses of about US$40,000, largely due to the same assumptions he now warns others against. “I came with the wrong mindset,” he admitted. “Later, when I truly understood the people, the decisions I made changed everything for our business.”

One practical example highlighted was Ghana’s payment culture. Despite the rise of digital finance, the speaker noted that about 80 percent of transactions in Ghana are conducted via mobile money, not bank cards. Businesses that rely solely on card payments risk excluding the majority of potential customers.

“If you come in and start a business that only accepts card payments, you will lose out on 80 percent of transactions,” he warned, adding that his own business faced this challenge firsthand.

The broader lesson, he said, is that Ghana’s market operates within a distinct cultural and economic context that requires patience, observation, and adaptation.

“We have a culture here. We have a way of doing things here,” he stated.

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For members of the diaspora considering investing or relocating to Ghana, the message is clear: success depends less on importing ideas and more on understanding local realities. Without that grounding, even well-funded ventures can fail — leaving investors disillusioned and financially strained.

Ghana continues to attract global interest from Africans abroad seeking reconnection and opportunity, and this expert says sustainable success will require deeper engagement with local communities, consumer behaviour, and business norms — not just optimism and capital.

A growing number of families in the United States, the UK and across Europe are exploring life in Ghana—whether for relocation, return, or long-term stays. One of the biggest questions they face is simple but critical: How much does it really cost to live in Accra?

In a detailed YouTube video titled “Cost of Living in Accra Ghana | Family Expenses, Schools, Utilities & Daily Life,” content creator Malaika in GH offers a firsthand breakdown of monthly and annual expenses based on her family’s real-life experience after more than a year living in Ghana with two young children.

Unlike curated relocation guides, the video focuses on actual costs—covering housing, education, food, healthcare, utilities, childcare and leisure—providing valuable insight for families comparing Ghana with life in the US, UK or Europe.

Housing: The Biggest Adjustment

Housing remains one of the most significant financial and cultural adjustments for newcomers. Unlike Western systems that allow monthly rent payments, many landlords in Ghana require one to two years’ rent paid upfront.

For a family seeking a decent three-bedroom home in a good Accra neighborhood, Malaika estimates monthly rent at around GH¢10,000 (approximately $650 USD). In premium areas such as Airport or Cantonments, rents can rise to $3,000 USD per month, paid in advance for the full year.

She also notes that many homes come unfurnished, meaning additional costs for appliances such as cookers, refrigerators, and sometimes generators.

To ease the transition, she strongly advises Ghanaians in the diaspora to explore staying temporarily with family or renting family-owned properties at reduced rates—an option that helped her family manage costs while settling in.

Education: Wide Range, Strong Standards

School fees in Ghana vary widely depending on the type of institution. Community schools can cost as little as GH¢4,000 per year, while top-tier international schools may charge between $4,000 and $6,000 USD annually.

Her older child attends a British Cambridge curriculum school and is thriving academically. She cautions parents to carefully verify schools that market themselves as “international,” noting that quality varies.

Daycare, however, is significantly more affordable than in the UK or US. Her younger child’s daycare costs about £400 per term, a fraction of what many parents pay in Western countries.

Food and Household Shopping

Weekly grocery shopping at supermarkets such as Melcom typically costs GH¢350 to GH¢600, depending on household needs. Local markets provide fresh produce like plantain, cassava, yams and vegetables at lower prices, often under GH¢200 per visit.

Wholesale shopping outlets also help families cut costs, especially for children’s items such as juice packs and snacks.

Healthcare: Affordable but Planning Is Key

Healthcare costs are generally manageable, especially for families without chronic medical needs. At the University of Ghana Medical Centre, registration costs are modest, and doctor consultations average around GH¢200, with medication and tests adding extra costs.

Private facilities such as Bloom Hospital offer faster service but at higher rates—up to GH¢300 per consultation. Malaika advises families to obtain health insurance or maintain a dedicated medical savings fund, particularly for emergencies.

Utilities, Help and Transport

For families, domestic help is common and culturally accepted in Ghana. Monthly house help wages typically range from GH¢800 to GH¢1,500.

Other recurring costs include:

• Electricity: GH¢1,500–GH¢3,000 per month
• Driver: About GH¢1,500 per month
• Fuel: GH¢500–GH¢800 per month

Family Life and Leisure

Entertainment for children is widely available and relatively affordable. Indoor play centers charge between GH¢70 and GH¢300 per child, while outdoor options like Aburi Botanical Gardens allow families to spend a full day for around GH¢100.

Cinema tickets average about GH¢100, with occasional promotions offering free entry for children.

A Growing Appeal for Families Abroad

Malaika concludes that despite the upfront costs—particularly housing and school fees—life in Ghana offers strong value, community support, affordable childcare, and a family-friendly environment. For her family, relocating to Ghana has been a positive and life-changing decision.

As more families in the diaspora consider returning or relocating, a firsthand account like this one provides a realistic picture of what living in Accra truly costs—without hype or exaggeration.

As Ghana positions itself to enter the global lithium supply chain, a fresh policy debate has emerged over whether the country is negotiating the strongest possible fiscal terms for one of its most strategically important mineral projects.

Franklin Cudjoe, founding president of policy think tank IMANI Africa, has questioned key assumptions underpinning the government’s proposed royalty framework for lithium, warning that inaccurate pricing data could undermine Ghana’s long-term national interest.

In a detailed commentary, Cudjoe clarified that under the proposed sliding royalty regime for lithium, the starting royalty rate remains 5 percent, not 7 percent as previously suggested in public discourse.

Crucially, he noted that the 5 percent rate would apply until lithium prices exceed $1,500 per tonne, despite current global prices hovering around $1,200 per ton.

“At today’s prices, with production costs estimated at $610 per tonne, the investor enjoys a profit margin of nearly 45 percent,” Cudjoe argued.

He contrasted this with conditions in 2024, when the same investor was prepared to sign an agreement with a 10 percent royalty rate while earning less than a 20 percent margin, based on an average price of $800 per tonne.

Cudjoe also challenged figures cited by the Minister of Lands and Natural Resources, saying claims that a 5 percent starting royalty was based on lithium prices of $3,000 per tonne in 2024 were “inaccurate.”

He urged government decision-makers to ensure that negotiations are anchored in verifiable market data rather than projections that could weaken Ghana’s bargaining position.

His comments come as Parliament considers a revised Mining Lease for the Ewoyaa Lithium Project in Ghana’s Central Region, led by Atlantic Lithium Limited. The lease has been referred to Parliament’s Select Committee, marking a critical step toward ratification and the possible development of Ghana’s first lithium mine.

Lithium’s role as a core input for electric vehicle batteries and renewable energy storage has elevated Ewoyaa’s importance beyond traditional mining considerations. Policymakers increasingly see the project as a pathway for Ghana to diversify away from gold and align itself with the fast-growing global clean energy economy.

To support this transition, the Ministry of Lands and Natural Resources has submitted the Minerals and Mining (Royalty) Regulations, 2025, which introduce a sliding royalty scale linked to global spodumene prices.

According to Graphic Business, the framework proposes royalties ranging from 5 percent for prices up to $1,500 per ton to 12 percent when prices exceed $3,000 per tonne, while keeping other fiscal terms from the original 2023 lease unchanged.

Government officials say the approach balances national revenue interests with the need to maintain Ghana’s competitiveness as an investment destination. Atlantic Lithium, for its part, has expressed optimism that parliamentary ratification would unlock development, attract foreign direct investment, and stimulate local economic activity.

Still, analysts say the debate highlights a broader challenge facing resource-rich countries: how to secure fair value from critical minerals at a time of accelerating global demand, without discouraging investment.

Cudjoe pointed to President John Dramani Mahama’s public engagement on lithium policy as a signal of the issue’s national importance, urging the minister to ensure that all decisions are transparent, consultative, and data-driven, in line with presidential direction.

As Parliament prepares to review the lease after its festive recess, the outcome is likely to shape not only the Ewoyaa project but Ghana’s broader reputation in the global critical minerals race.