Andani urges tax reforms to drive private sector growth

A renowned banker, Alhassan Andani, has called for measures to streamline taxes in the country to provide the much-needed relief to the private sector.

He explained that the challenges faced by Ghana's private sector, particularly regarding the excessive number of taxes levied on businesses, stifled growth and innovation, a situation that is unsustainable for an already struggling economy and urged rationalisation and reforms in the country’s tax system.

Mr Andani who is also the Executive Chairman of LVS Africa Limited, further argued that the government’s focus on social programmes should be phased out temporarily to allow the private sector to recover, proposing a moratorium on new tax measures and a reassessment of existing ones. 

In his view, allowing businesses some breathing space would ultimately benefit the government as it would enable them to continue to tax these entities in the future when they are in a stronger financial position.

CEO-Presidential Gala 

Mr Andani was speaking during a panel discussion on the topic “The Role of Business Leadership in Aligning Political Manifestos with Accountability and Economic Development” at the maiden Ghana CEO-Presidential Gala Dinner held in Accra.

The event on the theme: “Reigniting the Business Economy and Social Contract for Growth: A Business Manifesto for Political Accountability and Sustainable Development”, was attended by prominent figures, including Vice President Dr Mahamudu Bawumia, CEOs, heads of state, entrepreneurs, business leaders, and policymakers from across West Africa and beyond.

It aimed to foster collaboration, drive accountability, and chart a path toward sustainable growth.

“I would like to see maybe the new government phase out all programmes and push the social programmes maybe two or three years back and give the private sector space to recover. If we come in with any new tax measures: we don’t simplify, merge and delete some taxes. 

Some businesses have about 33 taxes, if we don’t rationalise it and give this emerging capital and private sector people time to breathe,” he said.

He added that the current tax regime does not only hamper cash flow for businesses but also complicates their ability to reinvest and expand which affects job creation.

Issues with GRA

He further expressed concern that the Ghana Revenue Authority (GRA) has been acting more like a "terrorist organisation" when dealing with businesses, pushing companies to the brink with stringent enforcement tactics. 

This, he said was particularly harmful in an economy where inflation and cedi depreciation were already impacting business operations negatively.

Reduce reliance on external aid

The Group Chairman of McDan Group, Daniel Mckorley, who expressed frustration over the lack of support for indigenous businesses, said "government policies have really not helped, to do business in Ghana, you have to be brave.”

That, he said reflects the difficulties faced by entrepreneurs in navigating the country's business environment.

He shared his experience in dealing with policies made by officials who lack an understanding of business operations and management, arguing that these policymakers in the country often make decisions that have a negative impact on the private sector.

Reflecting on the country's economic direction, Mr Mckorley urged Ghanaians to invest in indigenous businesses. 

This, he believes, would help reduce the government's reliance on external aid, such as support from the International Monetary Fund (IMF).

He further called for a unified national agenda, emphasising that "if we all scale towards one national agenda, Ghana could build stronger businesses." 

He believes that a cohesive and supportive approach from the government and policymakers is crucial for the growth and development of indigenous businesses.

Development policy  

For his part, the Founder of the Chief Executives (CEO) Network Ghana, Ernest De-Graft Egyir, the country requires a unified, long-term vision that aligns with the aspirations of businesses, communities, and future generations. 

According to him, political transitions should not disrupt progress, instead, governments must build upon a shared foundation that ensures continuity, accountability, and sustainable development.

“This is why l urge all of us here-CEOs, policymakers, and stakeholders-to champion the establishment of a National Development Framework. 

Let us insist on tying political manifestos to this framework, so we can move forward as a nation with purpose and unity,” he said.