Mahama Outlines Comprehensive Economic Reforms for Business Growth, FDI Boost in Ghana
Former President John Mahama and Presidential Candidate of the National Democratic Congress (NDC), has delivered a forward-looking address at the inaugural Distinguished Speaker Series organized by the Consortium of Trade Associations on Thursday, August 29.
Mr Mahama during the keynote address detailed the economic blueprint his administration would implement if elected into office, focusing on both general and targeted policy interventions aimed at fostering a conducive environment for businesses to thrive and addressing specific obstacles that hinder their efficient operations in Ghana.
The former president emphasized the necessity of creating a robust economic framework to attract and sustain foreign investment, which he described as essential to rescuing Ghana’s economy from its current challenges. A critical aspect of this strategy involves offering specific incentives to foreign investors to bridge the country’s investment deficits swiftly.
He highlighted several priority interventions that his government would undertake. These include the revocation of what he termed “nuisance taxes,” such as the COVID levy and the e-levy, coupled with a review of tax rates to ensure they are globally competitive.
Mr Mahama also underscored the importance of respecting the sanctity of contracts, a commitment that he assured would be a cornerstone of his administration. Addressing the issue of delayed payments to investors for goods and services provided to the government, Mr Mahama promised a transparent and timely system to resolve outstanding financial commitments, mirroring the efficiency achieved during his previous tenure as president.
“A new NDC government shall respect the sanctity of contracts properly executed that deliver value to the people of Ghana and to the investor. Several investors have complained about the lack of commitment on the part of the government to honour outstanding financial commitments in respect of goods and services that have been provided. I have taken notice of this important issue, and I want to assure all those in that situation currently that we will take an inventory of all that, and our government shall urgently work to resolve all these payment issues through a system that will be transparent and timely just as it happened when I was president,” he averred.
Another key area of focus is energy. Mr Mahama speaking at the event noted that he is committed to improving electricity sufficiency, reliability, and affordability. He proposed rapid reforms for strategic state-owned enterprises, such as the Electricity Company of Ghana and the Ghana Water Company, to enhance their efficiency and responsiveness to both investors and the general public.
The financial sector would also see reforms aimed at reducing the cost of credit, while the public sector would undergo targeted reforms to ensure efficient service delivery to businesses through institutional restructuring and the effective use of technology.
Former President John Mahama further highlighted plans to establish a multi-sector council chaired by himself, with the multi-sector council dedicated to accelerating investment and export promotion. This council would spearhead initiatives like the 24-hour economy, incentivizing businesses capable of round-the-clock operations while supporting small and medium-sized enterprises (SMEs) to expand and enhance their profitability.
He also mentioned ongoing and future reforms to the Ghana Investment Promotion Centre (GIPC) Act, which would aim to make the country’s investment climate more favorable for both local and foreign investors. He proposed rationalizing sector-specific laws to complement the GIPC’s mandate without imposing new burdens on businesses. Additionally, his government would work to ensure that local content laws are beneficial to both Ghanaian entrepreneurs and foreign investors.
In a bid to decentralize economic growth, Mr Mahama plans to strengthen business advisory centers in all 261 district assemblies, ensuring equitable access to investment and business support services across the country.
Collaborating with the Bank of Ghana and the Ghana Statistical Service, his government would initiate a district quarterly business climate survey to provide detailed, near real-time data to guide economic policy.
To further ensure that government policies are aligned with business needs, Mr Mahama proposed an annual presidential business forum, rotated across the country, where the president would engage directly with businesses to assess the impact of policies on their businesses and make the necessary adjustments.
These initiatives, coupled with strategic face-to-face meetings between himself and potential investors, would form the foundation of his administration’s efforts to promote investment and drive economic growth in Ghana.
