By Florence Afriyie Mensah
Kumasi, Jan. 16, GNA – Some traders in Kumasi, Ghana’s commercial hub, are appealing to the government to give a priority to initiatives that will provide the requisite incentives to ensure resilient and a thriving business environment.
According to them the cost of doing business in the country was too high, arguing that from payments of duty to taxes, those factors did not inure to the benefit of the economy.
“The cumbersome import duties, inflation, exchange rate, e-levy, emission tax, and COVID-19 tax should be critically looked at,” Mr Michael Amponsah, Executive Member, Central Market Traders Association, told the Ghana News Agency (GNA), in an interview in Kumasi.
The GNA has been sampling the views and expectations of the business community, as well as the economic outlook from the perspective of analysts, as the new government, led by President John Mahama, gets to work.
The recent nomination of Dr Casiel Ato Forson, a tax administration expert, as the Finance Minister, has also set the stage for what is anticipated to be the beginning of major economic reforms under the new administration.
Ghana’s economy went through a turbulent economic situation in the post-COVID 19 era, making the country to seek a US$3 billion IMF bailout.
With a stable multi-party government that is committed to market liberalisation, some analysts believe the country has what it takes to become the most attractive locations for doing business in the sub-Saharan Africa.
Mr Amponsah therefore urged the government to focus on implementing policies that would reduce the general cost of doing business in the country, while promoting investor confidence.
Data from the Ghana Investment Promotion Center (GIPC) shows that the country recorded one of its lowest foreign direct investments (FDI) of US$649.58 million in 2023.
This is about 55 percent drop from the previous year, which was at US$1.47 billion.
Meanwhile, Dr Dominic Frimpong, an economist and development planner, commenting on the stalled Krofrom and Kejetia/Central Market Second Phase Redevelopment Projects in Kumasi, described the situation as worrying.
“We are looking at two strategic projects, which have the potential to generate substantial investment and revenue for the government,” he told the GNA.
“For a country with all the pegs that make Ghana an attractive destination for FDI, it is a concern that the leadership is unable to do the right things to attract investment, particularly into areas of agribusiness and the industry sector.
GNA