Apetorgbor
is
a
Financial
Analyst
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The
continuous
escalation
of
the
cost
of
doing
business
in
Ghana
under
this
model
not
only
raises
questions
about
its
effectiveness
but
also
casts
doubt
on
the
Minister’s
claim
of
reviving
the
country’s
battered
economy.
Investing
in
Ghana
today,
under
these
circumstances,
is
akin
to
fetching
water
in
a
basket—an
exercise
in
futility.
To
liberate
Ghana
out
of
this
economic
quagmire,
it
is
high
time
we
draw
lessons
from
the
successful
Chinese
economic
growth
and
recovery
model.
The
government’s
economic
recovery
model
under
this
unimaginable
condition
is
retrogressive,
disingenuous
and
counterproductive.
Continuously
raising
the
cost
of
doing
business
in
Ghana
is
not
a
viable
strategy
for
economic
revival.
It
is
essential
to
learn
from
successful
models
like
China’s,
which
emphasize
a
supportive
business
environment
and
pro-growth
policies.
Only
through
genuine
reforms
and
a
commitment
to
fostering
a
business-friendly
climate
can
Ghana
hope
to
salvage
its
sickening
economy
and
pave
the
way
for
sustainable
prosperity.
The
cornerstone
of
the
Finance
Minister’s
economic
recovery
plan
seems
to
be
rooted
in
raising
taxes
and
increasing
regulatory
fees
to
generate
more
revenue
for
the
state.
This
approach
is
fundamentally
flawed.
The
World
Bank’s
Ease
of
Doing
Business
Report
has
consistently
shown
that
higher
operational
costs
deter
investment,
stifle
innovation,
and
inhibit
economic
growth.
The
government’s
policy
is
effectively
placing
a
heavy
burden
on
businesses
that
are
already
struggling
to
survive
in
a
tough
economic
environment.
The
continuous
increase
in
taxes
and
fees
has
a
crippling
effect
on
businesses.
According
to
the
Ghana
Union
of
Traders
Association
(GUTA),
these
policy
measures
have
led
to
inflated
costs,
reduced
competitiveness,
and,
in
many
cases,
have
pushed
businesses
to
the
brink
of
closure.
This
adverse
business
environment
discourages
both
local
entrepreneurs
and
foreign
investors.
The
economic
principle
is
simple:
you
cannot
expect
businesses
to
thrive
and
contribute
to
economic
recovery
if
you
continually
increase
their
cost
burden.
The
Finance
Minister’s
assertion
that
these
measures
are
reviving
the
economy
is
highly
questionable.
While
increased
taxes
might
generate
short-term
government
revenue,
they
do
not
provide
a
sustainable
path
for
long-term
economic
health.
The
International
Monetary
Fund
(IMF)
has
repeatedly
emphasized
that
genuine
economic
recovery
must
be
underpinned
by
a
supportive
environment
that
promotes
business
growth
and
productivity.
Unfortunately,
the
current
policy
trajectory
is
far
from
supportive.
China’s
economic
transformation
provides
valuable
lessons
for
Ghana.
China’s
meteoric
rise
was
not
achieved
by
overburdening
businesses
with
taxes
and
fees.
Instead,
the
Chinese
government
focused
on
creating
a
conducive
business
environment.
Key
strategies
included
reducing
regulatory
hurdles,
offering
tax
incentives,
investing
in
infrastructure,
and
fostering
innovation.
These
measures
attracted
significant
foreign
direct
investment
(FDI),
spurred
domestic
entrepreneurship,
and
drove
sustained
economic
growth.
Enyonam
Adzo
Apetorgbor
(CEO,
KIPC)
July
9,
2024