Members of the Ghana Netherlands Business Culture Council (GNBCC) have called on government, to among others, streamline its regulatory compliance processes to enhance efficiency.
They also urged for ‘deepened digitalisation’ in public service to address their exposure to corrupt practices in the sector.
“High regulatory and compliance cost is identified as one of the key cost components for the firms, and the synchronisation 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,” they recommended during research sponsored by the GNBCC.
Findings of the research conducted by IMANI Centre for Policy Education (CPE), was disseminated to members of the GNBCC at stakeholders’ dialogue session on April 30, 2024 in Accra.
The report is titled, “Reviewing current economic and investment challenges and opportunities for shared benefits and growth- a focus on the members of the Ghana Netherlands Business and Culture Council (GNBCC).”
According to a Senior Research Associate at IMANI CPE, Dennis Asare, a review of the existing tax regime was also recommended by the respondents.
“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 minimise 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 Foreign Direct Investments (FDI) attraction,” he disclosed.
Government was also urged to collaborate with business chambers to regularly understand the challenges investors face.
“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 Senior Research Associate said.
The other key challenge mentioned by investors is limited access to information. Members of the GNBCC recommended that “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.”
Mr Asare said Ghana has become the highest recipient of Foreign Direct Investments compared with countries like Kenya and South Africa.
“According to the Ghana Investments Promotion Centre (GIPC), there are more investors coming from Netherlands than other countries. It is therefore important to pay attention to the challenges of such businesses,” he advised.
According to him, research has proven that over 50% of manifesto promises end up as government policies.
“It is very important to get your issues captured in the manifestoes of the political parties,” Mr Asare told the members of GNBCC.
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He assured that an engagement session with the requisite government agencies will be held to table the issues before them for redress.
The General Manager of GNBCC, Mr Tjalling Yme Wiarda underscored the need for government to work with the GNBCC to continue attracting investors from the Netherlands.
He noted that the Council is committed to ensuring that businesses of members remain thriving through effective government relations strategies.
in furtherance of this, he introduced the author of a book titled, “Doing business in Ghana- A business guide for investors,” Francois Meysembourg who recommended it to members as a go to source for any information on how to operate a successful business in the country.
Background
Foreign Direct Investment (FDI) remains critical to Ghana’s economic development. On average, net FDI inflows over the last decade represent about 5.5 per cent of Gross Domestic Product and about 75 per cent of personal remittance flows in Ghana.
The effects of the COVID-19 pandemic combined with external global shocks and domestic fiscal weaknesses have severely affected Ghana’s economy, increased the cost of doing business, and slowed FDI in-flows.
In such an uncertain business and investment climate, enhanced investor relations are critical to effectively understanding the challenges faced by foreign investors and identifying the opportunities to accelerate FDI flows and create a supportive investment and business environment.
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