GNCCI: Government must safeguard companies

Mark Badu-Aboagye, the CEO of the Ghana National Chamber of Commerce GNCCI and Industry, asserts that the government must use the next mid-year budget review to provide assistance to the nation’s businesses.

While the $3 billion bailout from the International Monetary Fund (IMF) was intended to bring stability, he said that it also came with terms that increased the cost of doing business and placed an unfair burden on firms.

Businesses, he said, were hoping that the government will propose some steps during the Mid-Year Budget Review to help alleviate the situation of entrepreneurs and the general people.

At the Graphic Business/Stanbic Bank breakfast meeting on Tuesday, Mr. Badu-Aboakye addressed a group of business leaders, entrepreneurs, and representatives of civil society organizations on the topic of “The current economic situation and you: what to expect, how to cope, and how to thrive.” GNCCI

Other speakers at the event included Benjamin Boakye, the executive director of the Africa Centre for Energy Policy, and Professor Godfred A. Bokpin, an economist and professor of finance, as well as the head of corporate and investment banking at Stanbic Bank. GNCCI

Difficult Circumstances

Mr. Badu-Aboakye emphasized that firms prosper in supportive environments and struggle in unfavorable economic circumstances, such as the ones that exist today.

For instance, he said that the implementation of new tax policies was causing inflation to soar, which was then devouring firms and impeding growth in all areas of the economy.

The administration anticipates that the new tax policies will increase domestic revenue by an additional US$340 million. GNCCI

The head of GNCCI also stated that the significant and unfavorable exchange rate swings, particularly the dollar rate to the local currency, which fluctuates around 12 to a dollar, were detrimental to company expansion.

“The dollar rate around 12 to one dollar is high, and if you are importing you know what that means,” he continued.

Again, he claimed that the sudden hikes in water and energy prices were all having an impact on inflation, lowering people’s purchasing power and hindering company expansion.

“Inflation at the end of May was 42%, and it is the third highest in Africa after Zimbabwe and Sudan. Businesses are being eaten alive by taxes, and taxes are raising inflation,” he stated.

Corruption

According to Prof. Bopkin, it was incorrect to attribute the underdevelopment of the nation to the government’s failure to increase tax revenue from the populace.

Instead, he claimed that it was a result of corruption and activities associated to it that had drained the nation’s resources and prevented it from undergoing the necessary development.

For instance, he said that unethical practices that had almost permeated the public sector were costing the nation roughly $3 billion annually. GNCCI

It is untrue that Ghana has not advanced because we have not collected enough taxes; instead, Prof. Bopkin argued that we must combat corruption since it costs us $3 billion year due to leaks in the system and corruption.

Meanwhile, he argued that the people and the government should be disturbed by the speed at which illegal mining activities are endangering the viability of the nation and take drastic action to stop the threat.

Mr. Boakye also made a plea for citizens and civil society organizations to take the initiative in pressuring public authorities to provide responsible and effective governance.

He claimed that was the only way to address the current economic issues that had caused people, homes, and businesses to suffer unnecessarily.

Because we saw as poor economic judgments were made and even though we talked about it and wrote about it, Prof. Bopkin stated, “the government must meet the citizens halfway.”

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