Category: Business

Ghana is keeping pace with the rapid global transition to digital technologies, including in the realm of e-government where the country is regarded as a leader in Africa.

Ghana received high scores on the 2022 United Nations E-Participation Index, which assesses the extent to which governments use online platforms and technologies to involve citizens in decision-making processes and policy development.

The 2022 World Bank GovTech Maturity Index also finds Ghana outperforming regional peers.

Digital service delivery is strengthening governance and providing efficiencies for the public and private sectors.

Ghana’s Business Regulatory Reform unit (BRR), established in 2017 within the Ministry of Trade and Industry, provides a strong example.

Under the Ghana Economic Transformation Project (GETP) and with technical assistance from the ACP-Business Friendly Program funded by the EU, the World Bank is supporting the BRR in boosting increased citizen engagement through e-portals.

Technology tools are ensuring
that the private sector is aware of regulations, allowing the BRR to better engage companies in the regulatory process and identify regulatory bottlenecks.

Three examples stand out:

Business Regulations E-Registry

After its inception, the BRR quickly adopted ICT tools to serve its constituents.

One of the most significant developments is the launch of an e-registry in 2020, which allows users to access and download regulations relevant to the business environment. The e-registry includes user-friendly features like keyword searchability and filters to locate relevant regulations.

The e-registry not only streamlines the process for companies to establish and operate legally but also strengthens their adherence to legal regulations.

Consultation Platform on Draft Laws and Regulatory Proposals

BRR’s commitment to promoting regulatory transparency through technology-enabled services extends to participatory governance.

The Public Consultation Portal enables civil society to access draft laws while BRR off
icials review feedback, including comments and poll results.

For example, the MSME (Micro, Small and Medium Enterprises) Classification Regulation (2021) garnered over 1,000 views and received valuable suggestions.

A notable one is to use employment numbers to categorise firms (e.g., micro, small, medium, and large).

This criterion was incorporated in the final regulation adopted by Parliament.

An online ‘suggestion box’

The BRR seeks to engage citizens and firms through the ‘Have Your Say’ platform that allows companies to voice complaints on regulatory bottlenecks and suggest improvements.

Users can submit their recommendations for review by BRR personnel.

This feature, inspired by the Singapore’s Pro-Enterprise Panel suggestion window, aims to identify and address procedural bottlenecks and implementation gaps on regulatory reform implementation.

The feedback platform, still in the initial stages of implementation, promises to provide an efficient means of reaching officials to improve business con
ditions.

Looking ahead: Is Ghana a new regulatory service model for Africa?

The BRR is committed to sharing knowledge with peers across the continent.

In March 2023, with support provided under the ACP Business Friendly Program funding by the European Union, BRR representatives introduced digital solutions and lessons learned to a delegation from Madagascar.

Following this exchange, the country is now looking to implement similar tools to better engage its private sector in the regulatory reform process.

While e-service tools are starting to make their mark in Ghana, the BRR continuously seeks to enhance its digital services.

Improvements include building awareness about these online solutions and strengthening constituents’ trust in these tools.

As countries on the continent strive for sustainable growth, enhancing service delivery efficiency and involving the private sector and citizens in governance are crucial steps.

Developing targeted technology solutions will help African nations leverage gover
nance improvements and operational efficiencies, and thereby better support their populations and foster development.

The next time you think of getting access to business-related regulations in Ghana, kindly visit www.brr.gov.gh for help.

Source: Ghana News Agency

The National Democratic Congress (NDC) Parliamentary Minority is demanding an immediate increase in the cocoa farm-gate price by the Government.

Mr Eric Opoku, the Ranking Member on the Parliamentary Select Committee on Food, Agriculture and Cocoa Affairs, in a statement copied to the Ghana News Agency, said the Minority had taken notice of recent developments on the international market relative to the prices of cocoa.

‘We have observed that global cocoa prices have been soaring in recent time, hitting an all-time high of US$10,000 per ton,’ he said.

He noted that the recent increase in cocoa prices on the world market had been occasioned by the global shortage of cocoa, owing to a significant decline in cocoa output in Ghana and Cote D’Ivoire, who contribute approximately 70 per cent of the total volume of cocoa produced globally.

He said the NDC was deeply concerned about the sharp decline in Ghana’s cocoa production volumes under the New Patriotic Party (NPP) Government.

He said the situation was set
to get even worse, as Ghana’s cocoa production for the 2023/2024 crop season was reported to be about 450,000mt; the lowest in the past two decades.

Mr Opoku said this was fast-eroding the incomes and purchasing power of the already-impoverished cocoa farmers.

He said the living conditions of Ghanaian cocoa farmers keep worsening by the day due to the sharp decline in cocoa output.

‘Clearly, this negative trend will persist if the farm-gate price of cocoa is not significantly increased, to compensate for the loss in income of farmers,’ Mr Opoku stated.

‘It is instructive to note, that the average international market price of cocoa currently stands at US$10,000 per ton 16 bags of cocoa.’

The Ranking Member, who is also the NDC Member of Parliament for Asunafo South, said the current world market price was equivalent to GHS130,000.00 per ton, at a conservative exchange rate of $1.00 to GHS13.00.

He said this means that a bag of cocoa was currently being sold on the world market at about GHS8,125, while t
he Ghanaian farmer was being paid a paltry GHS1,308.

He reiterated that this was a clear rip-off of the nation’s hard-working cocoa farmers by the NPP Government who continue to mismanage the cocoa sector.

He said the NDC Caucus in Parliament was urging the government to immediately increases the farm-gate price of cocoa to reflect the recent unprecedented hike in the world market prices of cocoa.

‘We are appalled by the continuous mismanagement of the cocoa sector and the shortchanging of our hard-working Ghanaian cocoa farmers by the ruling NPP government.’

Mr Opoku said last year, Ghana lost about 150,000mt of cocoa valued at almost $400,000,000 to smuggling.

He said this was occasioned by the fact that the nation’s hardworking cocoa farmers were not offered competitive prices.

He said the recurrence of this situation this year would have dire consequences for the cocoa industry, which was on the verge of collapse due to gross mismanagement and corruption.

Mr Opoku said it was sad to note, that whil
e the nation’s hard working cocoa farmers continue to be shortchanged, COCOBOD’s administrative expenses which stood at less than GHS500 million in 2016, increased to GHS1.7 billion in 2020, and ballooned further to GHS2.5 billion in 2021.

‘Only this week, we sighted an official document in which the Management of COCOBOD has granted approval for the purchase of 15 ipad keyboards for its Board of Directors at a staggering cost of GHS4,500.00 per unit.’

He said this was the clearest evidence yet, that the Management of COCOBOD had prioritised waste and the comfort of their offices at the expense of hard-working cocoa farmers.

He said in addition, it was symptomatic of the recklessness and mismanagement that have plagued COCOBOD for the past seven years which accounted for the cumulative losses of GHS13.62 billion, recorded by COCOBOD since 2017.

He said it was the considered view of the Minority Caucus, that urgent steps be taken to save the nation’s dying cocoa sector now.

He said it was therefore impera
tive that the Government significantly increases the farm-gate price of cocoa, in consonance with the current world market price of cocoa.

‘This we believe will incentivise our farmers and discourage the smuggling of cocoa beans amid all the challenges bedeviling the industry,’ Mr Opoku said.

Source: Ghana News Agency

The government has been urged to review the tax law that has roped credit unions into the payment of corporate income tax to ensure financial inclusion and poverty reduction.

Aside from deepening financial inclusion and fighting poverty, which was a core objective of every government, credit unions could also contribute to the realisation of the United Nations Sustainable Development Goals (SDGs) on ending poverty by 2030.

Mr John Kofi Seidu, the Board Chairman of the Wa Community Cooperative Credit Union (WACCU), said this in Wa during the Union’s Annual General Meeting (AGM).

He said there was an urgent need to revert the credit union movement to its status quo regarding the payment of corporate income tax, to enable them to deepen financial literacy, capital formation and financial inclusion, among others.

He appealed to the President, Finance Ministry and the Ghana Revenue Authority (GRA) to consider an immediate review of the tax law that had wrongfully brought credit unions under the tax radar of th
e state.

Mr Seidu said this in relation to an estimated amount of GHS900,000.00 corporate income tax obligation of WACCU for 2023, which he said was the first time WACCU was paying such tax in its 59 years of existence.

He said it was sad that the GRA had been harassing credit unions over the corporate income tax and appealed to the appropriate authorities to take the necessary action including reviewing the law to help save Credit Unions from such harassments.

Mr Seidu reported that WACCU made a profit of GHS2,354,094.23 in 2023 against a profit of GHS1,715,728.26 in 2022 but said the corporate income tax was affecting the Union.

He said within the year under review the Union made a gross revenue of GHS8,495,579.59 against a gross revenue of GHS6,170,701.76 accrued in 2022.

Mr Dramani Natomah Adams, the Upper West Regional Chapter Chairman of the Ghana Co-operative Credit Unions Association (CUA), said credit unions were there to protect the interest of its members.

He urged members to take ownership o
f the Unions and to support their growth, saying, ‘We are not into profit-making.’

He also encouraged the members to verify the information they received about the Union and not to act on rumours as that was detrimental to the growth of the Union.

Source: Ghana News Agency

The Complementary Education Agency (CEA), with support from the Kpone-Katamanso Municipal Assembly, has trained 15 women in the municipality on how to make fabric softener.

A fabric softener reduces the harsh feel of items dried in the open air, adds fragrance to laundry and/or imparts anti-static properties to textiles.

The programme, which formed part of the CEA’s quarterly skills training, was to enhance the vocational skills and promote economic opportunities for individuals in the various communities.

The Kpone-Katamanso Municipal Assembly provided financial support to ensure its success.

Participants were introduced to after-wash making, ingredient selection, formulation techniques, packaging, and marketing strategies by a former agency trainee.

Mr Zac Abrahams, the Director of CEA, Kpone-Katamanso, in an interview the Ghana News Agency, said the primary objective of the training was to equip participants with the knowledge and skills necessary to produce high-quality household products.

He mentio
ned the empowerment the training would bring to individuals to create additional sources of income and improve their overall standard of living.

It included sessions on entrepreneurship, marketing fundamentals, pricing strategies, and customer engagement.

‘The supplementary topics were aimed at equipping participants with the business acumen necessary to succeed in the competitive market,’ Mr Abrahams stated.

The learners were advised to wear protective gear, ensure good ventilation, handle ingredients safely, have a first aid kit and emergency procedures in place, and maintain quality control when making the products.

Madam Sandra Boison, the Director for Culture, Creative Arts, and Tourism of the Assembly, urged learners to approach the training with dedication.

She reminded them that monthly monitoring was conducted to track how effectively they were applying the newly acquired skills to their businesses.

Source: Ghana News Agency

The Institute of Economic Affairs (IEA) Ghana says the Electricity Company of Ghana (ECG) needs expert managers to tackle the inefficiencies in the Company’s operations.

Whilst the Institute maintained that ECG should remain state-owned, it stressed that the new crop of managers should be drawn from wherever applicable, both locally and internationally, with appointment devoid of political party affiliation and rather based on competence.

It noted that curtailing the country’s periodic power outages required a holistic approach, which must include dealing with the legacy debt, reducing the industry-high distribution losses, improving bill collections, stemming illegal connections and moving to legitimate cost-recovery tariffs.

Dr John K. Kwakye, Director of Research, IEA Ghana, said this at a press briefing on Wednesday to present the Institute’s reflections on the State of the Nation Address (SONA) delivered by President Akufo-Addo on February 27, as well as the Monetary Policy Committee (MPC) Decision de
livered on March 25 by the Governor of the Bank of Ghana.

In his message during the SONA, President Akufo-Addo touted the Government’s success in ending the intermittent power outages called ‘Dumsor’ locally and managing ‘to keep the lights on in the last seven years’.

Whilst IEA acknowledged that power had been much more stable in the last seven years than the four years earlier, it also noted that the subsequent stability benefited from previous investments in the power sector.

‘What we also know is that the stable power has been achieved at considerable budgetary cost some of which emanated from previous contractual agreements,’ Dr Kwakye added.

The Director of Research highlighted some areas of interest, which were not captured in the SONA – corruption and illegal mining, popularly known as ‘Galamsey’.

Dr Kwakye said both local and international corruption reports showed that no significant progress had been made by the country in tackling the canker in the past 30 years.

He proposed that if the Off
ice of the Special Prosecutor could be successful in fighting corruption, it would be important to re-enact its Act and remove it completely from the influence of the Executive, with regard to appointment, prosecution of cases, and funding.

Touching on ‘galamsey’, Dr Kwakye noted that even though the government had implemented a number of strategies and invested quite an amount of capital in dealing with the menace, limited success had been achieved so far.

He added: ‘This appears to be due to the existence of strong vested interests in the business, involving well-placed individuals and groups.

‘It would take concerted efforts in regulation, community engagement and a strong sanctions regime to bring the menace under control and avoid its potentially disastrous consequences.’

Other areas in the SONA that IEA Ghana reflected on were Peace and Security, Projects, Taxes, Debt, Macroeconomy, Social Protection, Free Senior High School, Planting for Food and Jobs, and Minerals.

Source: Ghana News Agency

Mr Kobina Tahir Hammond, Minister of Trade and Industry, has called for flexibility in trade policies to facilitate Africa’s industrialisation agenda and make the continent benefit fully from the multilateral trading system.

He made this call during a meeting with Ms Rebecca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), in Geneva as part of a working visit.

He noted that the African Continental Free Trade Area (AfCFTA) would provide the continent with a good starting point for removing trade-related bottlenecks and ensuring that export volumes and values are increased on the continent.

Mr Hammond called for close collaboration and consensus among African governments to build trust on key issues such as agriculture, which he said could facilitate value-addition and increase the continent’s exports.

The Minister also called for enhanced efforts to position the continent to attract a significant amount of trade-related investment that would enable it to take
advantage of global value chains.

In Ghana, President Nana Addo Dankwa Akufo-Addo was ensuring the transition of the country from a ‘Guggisberg- raw material based’ economy to one of value addition, he said.

To achieve this, the government, through initiatives like the One District-One Factory (1D1F) initiative and the establishment of strategic anchor industries was spearheading Ghana’s advancement of industrialisation agenda, Mr Hammond said.

In her remarks, Ms Grysnpan, Secretary-General, UNCTAD, called for support for the global-south to be fully integrated into the multilateral trading system through capacity-building initiatives.

She also emphasised the need to work together to achieve multilateral agreements that support the development, with special and differential treatment being accorded to the most vulnerable.

Ms Grysnpan called for equitable financial regulations and investment regimes to support global trade rules to deliver development for all.

Source: Ghana News Agency