The Ghana National Chamber of Commerce and Industry (GNCCI) has called on the government to use the 2025 Budget to initiate policies and incentives that simulate private sector growth as a platform to reset the economy.
Mr. Stephane Miezan, President, GNCCI, said, “We call for closer collaboration between the government and the GNCCI to ensure policies and tax reforms foster a business-friendly environment.”
The President was speaking at the inauguration and swearing in ceremony of 80 Members of the National Council for the Chamber in Accra.
The Members took the Oath of Office and Oath of Secrecy administrated by Justice Evelyn Mensah, a Judge of the Circuit Court in Accra.
The newly inaugurated national council chaired by the President of the chamber is to steer the affairs of the GNCCI for a year, promote the interests of its members and advocate a conducive business environment.
It is made up of accomplished and experienced business leaders.
He said the Chamber was committed to working with the government to support its initiatives, particularly the 2024-hour economy agenda, adding the Chamber was open for further engagements and discussions
He also called for pro-business reforms and policies in the upcoming 2025 National Budget to support the country’s private sector.
He said immediate fiscal measures were essential to relieve the mounting pressures on Ghanaian businesses and ensure their continued growth and sustainability.
He said the private sector had experienced significant economic difficulties over the past decade due to lack of fiscal discipline, high fiscal liabilities from the financial and energy sectors, and expensive fiscal response to global shocks.
The President said despite some signs of recovery in 2024, mainly due to reduction in the impact of global shocks, the government’s excessive spending which the IMF indicated grew faster than Gross Domestic Product resulted in increased economic pressures on the private sector.
These include excessive taxation and levies coupled with complex tax administration, high credit costs for the private sector, averaging 35 per cent, the depreciation of the Ghanaian cedi, and high utility costs along with unreliable power supply.
He said in addition to removing some of the existing excessive and inefficient taxes, such as the e-levy, COVID-19 levy, the GNCCI urged the government to also avoid introducing new taxes, particularly those that significantly affect production costs.
Mr Miezan called for fiscal discipline to reduce the tendencies of further crowding out of the private sector given the already limited access and high cost of credit to local businesses.
Also, the government must reduce non-priority expenditure and properly rationalize foreign borrowing.
GNCCI urged the government to collaborate with the Central Bank to reduce the cost of borrowing, which has remained chronically high compared to competitors over the past half a decade as result of persistent high MPC rate.
He said for long-term sustainable growth and the stability of the exchange rate, “we call for targeted spending and incentives to key export-oriented sectors such as agriculture and manufacturing.”
The President urged the government to put in place measures to bolster forex reserves to strengthen the local currency as further depreciation would be very detrimental to the business environment.
He encouraged foreign investors to consider investing in Ghana, capitalizing on the nation’s favourable economic prospects and the increasingly positive outlook for growth.
He reaffirmed GNCCI’s unwavering commitment to collaborating with and supporting the government in its efforts to create more jobs, promote accountability, and foster inclusive prosperity for all.
