Business News of Friday, 10 February 2017
Source: Enerst Lartey
Vice President of the Association of Ghana industries, Mr. Humphrey Ayim Darkeh has said that business confidence in the Ghanaian economy has surged up not because the business structures have changed but as result of the change in government.
“There is a new administration in power and people are expecting taxes and electricity tariffs to go down so that businesses which were stifled by the energy crises in the previous regime can mop up,” Mr.Darkeh explained.
This he said is very essential for business growth as a lot of investors will begin to see Ghana as a favorable destination for doing business.
He further indicated that the Associaton of Ghana industries’ recent meeting with president AKufo-Addo was mainly to partner his government in implementing his policies for the economy to have a strong foothold.
According to him, at present, many businesses are cautious because they want to be sure that the fundamentals of doing business are sound and reliable before investing in key areas of the economy.
Discussing the essence of business confidence in the economy on ‘State of Affairs’ on GhOne TV, an Economist with the Songhai Advisory LLP, Mr. Emmanuel Amoah Dakwah who shared similar views recommended that government should incorporate into its plans, the urgency to drive down the charges on electricity and reduce taxes to make it more easier for businesses to thrive in Ghana.
But he also advised that government should be guarded in striking down taxes such that it doesn’t create unnecessary imbalances in the economy.
In his opinion more businesses are folding up because borrowing is now a big challenge due to the high levels of interest rates that they are mostly inundated with and expressed hope that the regulator, Bank of Ghana will keep that in check.
The Director of Business Operations, Dalex Finance, Mr. Joe Jackson also advised that government in its bid to strengthen the economy should not try out any ficticious means of stabilizing the cedi as it will be disastrous to the economy.
“The cedi depreciation is good. We have over valued the cedi, we should leave it as it is. On the balance, what we need in the economy is a stable cedi rate that can be maintained. Any artificial attempt to stabilize the cedi will spur doom,” Mr. Jackson stated.
Mr. Emmanuel Amoah Dakwah lauded the finance minister’s decision to continue with the IMF program till it ends and said it was prudent but government must tread carefully because the implications could be dire.
“We have messed up our GDP, Inflation, public debt among other things and it’s possible that these could worsened if we don’t espouse sound economic management policies,” Mr. Dakeh said.
Mr. Jackson has advised Hon. Cecelia Abena Dapaah, the minister designate for Aviation and the government not to invest in a National Airline as it will be a waste of state resources.
But on the contrary, Mr Dakeh and Darkwa disagreed saying that it is doable if only managers of state institutions will stop being lackadaisical and be more proactive.