In an interview with Tjalling Wiarda, General Manager of GNBCC, he first wants to congratulate King Willem Alexander with his birthday.
Wiarda has always been a staunch supporter of the Dutch Monarchy, certainly now in troubling times hovering over Europe concerning the war in Ukraine and the general discontent of a lot of people which affects historic institutions and certainties.
Wiarda is convinced this has been created by the loss of securities due to the changing of values and standards in these troubling times. He calls for patience in general and less polarization. Try to listen to each other and embrace pluralism.
On improving on Ghana’s investment climate, he is convinced that the adaption of the new GIPC law, which is now in parliament, will ease and propagate foreign investments in Ghana again. Finally the high financial thresholds will be removed opening up Ghana for especially SME business from Europe / the Netherlands.
Furthermore he wants to highlight the recommendations which came out of the GNBCC Members survey held in Q 4 2023 / Q 1 2024 which are repeated below:
- Streamline regulatory compliance processes and deepen digitization in public service to address firms’ exposure to corruption. High regulatory and compliance cost is identified as one of the key cost components for the firms, and the less synchronization of regulatory and permit processes leads to firms paying extra costs through unofficial channels. Thus, the government must deepen the existing e-government services to ensure that the services are delivered efficiently and reduce the cost of compliance. This will help to reduce the bureaucratic interference of public agencies in the activities of investors.
- Review the existing tax regime. Given that the existing macroeconomic challenges have already increased the cost of doing business for firms, the government must review and align the tax frameworks to minimize the incidence of “duplicating taxes” that make it expensive for businesses to operate in Ghana. Reducing the tax burden on businesses is crucial to making the firms competitive and increasing FDI attraction. Furthermore, the government must engage foreign investors to enhance their understanding of the tax administration system and how they can use the electronic platforms to their advantage. For instance, the government must provide capacity building on how firms can access tax exemption available in the provisions.
- Collaborate with business chambers to regularly understand the challenges of investors. The findings indicate that most of the businesses heard the investment opportunities through GNBCC, which also suggests that the GNBCC will be their first point of contact when they face challenges. The government must collaborate with the chamber of businesses to be ahead of addressing the obstacles to investment.
- Increase investors’ access to information on support programmes available to investors. Limited access to information was identified as one of the obstacles to doing business in Ghana. The government can work collaboratively with the chambers of businesses to consistently provide regular information on government support in the form of tax reliefs, exemptions, and financing opportunities to investors.
Finally Wiarda hopes Ghana will have peaceful elections at the end of this year and may the best candidate wins, hence the candidate who will embrace above recommendations.
