By Juliet ETEFE ([email protected])
Top business leaders are intensifying calls for tax reforms and increased transparency in fiscal policies, arguing that these changes are crucial for boosting economic growth.
They pointed to the burdens of high taxes, complex regulations and limited insight into public spending as significant obstacles to progress.
Chief executive officers from sectors such as technology, finance and investment, at the inaugural Ghana CEO-presidential gala in Accra, voiced urgent concerns over how high taxation and regulatory inconsistencies are stifling private sector resilience, limiting job creation and ultimately hindering economic growth.
They also underscored the need for a more balanced approach to governance, whereby the private sector’s role in nation-building is recognised and supported.
The leaders proposed key measures aimed at aligning political promises with business realities to ensure that the private sector remains a driving force for sustainable development.
Fiscal and economic balance
LVSAfrica’s Executive Chairman, Alhassan Andani, reiterated economic pressures facing the private sector – particularly the impact of high taxes and inflation – noting that while private enterprises can develop strategic plans, fluctuating macroeconomic conditions often hinder long-term growth.
Mr. Andani highlighted a fundamental conflict: government’s focus on social commitments in political manifestos which often translate to a reliance on private sector taxation.
He explained that while taxation is essential, it must strike a balance that does not stifle private enterprises.
He also called for policies to protect and stabilise the banking and financial sector, which he regards as critical to economic resilience.
Building resilience
McDan Group Chairman Dr. Daniel McKorley urged both the public and private sectors to align on a unified national agenda, noting that economic progress relies on having a shared vision rather than being subject to shifts in party-driven policies.
He touched on navigating the country’s challenging business environment, where bureaucratic processes and inconsistent policies often create obstacles for entrepreneurs.
As such, he advocated for fair policies and equitable opportunities that can better position indigenous businesses to actively support government efforts and break the cyclical borrowing.
He also raised concerns about how the public sector makes policies for the business sector, which in many cases are not feasible on the grounds.
He further pointed out the ‘winner-takes-all’ political culture, saying it discourages inclusivity and stifles broad economic progress.
Competitive tax regime
Deputy CEO-Ghana Investment Promotion Centre (GIPC), Yaw Amoateng Afriyie also touched on how complex tax policies are a burden on businesses, deterring investment and hindering economic growth.
He suggested learning from countries that have simplified tax regimes to encourage entrepreneurship. He argued that a competitive tax environment is needed to stimulate private sector, attract foreign investments and unlock the country’s potential as a regional business hub.
He proposed that tax reforms should prioritise small- and medium-sized enterprises (SMEs), which play a crucial role in job creation and economic stability.
Simplifying regulations
He also noted the impact of overregulation on private sector growth, noting that many regulatory policies remain outdated and overly complex; and as such are a disincentive to investment.
Ideally, Mr. Afriyie noted, the private sector needs a regulatory environment that not only ensures fair competition but also promotes innovation.
He encouraged government leaders to partner with industry experts to revise and update policies in a bid to make Ghana more attractive for both local and foreign investors.
Regulatory independence
Dr. Kenneth Ashigbey, CEO-Ghana Chamber of Communications, on his part criticised the influence of political directives on regulatory decisions.
He called for regulatory bodies’ greater independence, urging CEOs to play an active role in state affairs rather than leaving critical decision-making solely to politicians.
Dr. Ashigbey pointed out that the private sector has a responsibility to voice concerns and hold government accountable, especially regarding issues like environmental degradation and public health.
He urged private sector leaders to unite as a collective force and to actively hold the government accountable, rather than remaining passive.
On technology, he advised the business community and country at large not to remain consumers but invest, collaborate and innovate to harness the landscape’s potential.
Transparent public-private partnerships
Prince Kofi Amoabeng, founder of the Kofi Amoabeng Foundation, highlighted a disconnect between political strategies and private sector growth.
Mr. Amoabeng urged government to adopt a more open and accountable approach to public spending, suggesting that such reforms could foster a stronger partnership between the private sector and policymakers.
He further suggested that by promoting greater visibility, government could gain the private sector’s trust and increase its willingness to invest in national development projects.
Self-reliance and resource utilisation
The Executive Chairman-Intercom Programming and Manufacturing Company (IPMC), Amar Deep Hari, also holds strongly that economic progress must begin with self-reliance and making better use of local resources.
He advised the economy to move beyond imported staples like wheat and rice, noting that the country has a climate conducive to cultivating resilient crops like maize and millet, which offer both economic and health benefits.
“The foundation of every country is the needs of its citizens. The basics of food, clothing and shelter are essentials every country must secure,” he concluded.
