GNCCI urges Gov’t, BoG to tackle inflation and improve business environment
In a bid to bolster Ghana’s economic recovery and support local businesses grappling with the effects of COVID-19, the Ghana National Chamber of Commerce and Industry (GNCCI) has called upon the government to take swift action in addressing the country’s soaring inflation. Highlighting the adverse impact of high inflation on businesses, the Chamber has urged the government to collaborate with the Bank of Ghana to explore innovative measures and find lasting solutions.
The GNCCI’s propositions come as part of its recommendations for the upcoming 2023 Mid-Year Budget Review, where it emphasizes the urgent need to secure funds for business expansion and recovery. The Chamber argues that the current upward trajectory of both policy and lending rates is detrimentally affecting key sectors and hindering the growth of the industrial and service sectors.
While the GNCCI acknowledges that monetary policy plays a crucial role in curbing inflation, it asserts that the problem at hand extends beyond a purely monetary issue. The Chamber suggests that the government should also focus on addressing supply-side constraints to effectively tackle the persistently high inflation rate.
In addition, the GNCCI emphasizes the need for the government to prioritize tax reforms that enhance the efficiency of tax administration and broaden the tax net. Rather than burdening businesses with new taxes or increased tax rates, the Chamber urges the government to adopt innovative approaches that reduce the cost of production and foster an enabling environment for the private sector. By doing so, the government can safeguard domestic businesses, stimulate industrialization, boost exports, generate employment, and foster sustainable growth.
The Chamber’s proposals further underscore the pressing need for the government to resolve the impasse between the government and Independent Power Producers (IPPs) to prevent potential power cuts that could severely impact businesses. Recognizing the adverse consequences of power disruptions on domestic enterprises, the GNCCI appeals to the government to find a lasting solution to this issue, thereby fostering a conducive environment for business operations.
The GNCCI’s recommendations offer a comprehensive framework to address the pressing economic challenges facing Ghana. By urgently tackling inflation, implementing efficient tax reforms, and ensuring a stable power supply, the government can provide much-needed support to domestic businesses, propel industrialization efforts, and foster sustainable economic growth. As Ghana sets its sights on post-pandemic recovery, it is imperative for the government to heed the Chamber’s call and take proactive steps to create a favorable business environment.
