VP Bawumia pledges business-friendly policies and support for private sector at CEO dinner

Vice President Dr. Mahamudu Bawumia has outlined an ambitious 17-point plan aimed at revitalising Ghana’s private sector and fostering a business-friendly economy. Speaking at a CEO dinner gathering top business leaders and private sector stakeholders, the NPP flagbearer reaffirmed his commitment to creating an economic environment that supports businesses, stating that a thriving private sector is essential for sustainable national growth.

“When businesses do well, the economy does well,” Dr. Bawumia told the audience. “Show me a buoyant national economy in any part of the world, and I’ll show you strong and resilient businesses behind it.” Emphasising the need for “bold, innovative solutions,” he described his plan to tackle the pressing challenges of high taxes and regulatory inefficiencies faced by Ghanaian businesses.

Tax Reforms and Business-Friendly Policies

Among his proposed measures, Dr. Bawumia promised a *tax amnesty* to give businesses and individuals with prior tax issues a fresh start, aiming to encourage compliance and boost investments. He also committed to introducing a flat tax rate for individuals and businesses, designed to simplify Ghana’s complex tax system and reduce the time businesses spend on tax administration.

“A simple, flat tax rate will ease the burden on taxpayers and eliminate the need for constant back-and-forth with tax officials,” he said. Electronic filing and faceless tax assessments are also part of his reforms, which he argued would improve transparency and reduce corruption.

Empowering Private Sector in Public Infrastructure

Dr. Bawumia also pledged to empower the private sector to participate in public infrastructure projects. This includes financing, building, and leasing infrastructure like schools, roads, and healthcare facilities to the government, which he believes will stimulate job creation and cut down on waste and corruption in government spending.

“We will leverage government purchasing power to boost local businesses,” he stated, outlining plans to reduce government expenditure by 3 percent of GDP and redirect those funds to private sector-led infrastructure projects. His administration, he said, would focus on Public-Private Partnerships (PPPs) as a primary model to bridge Ghana’s infrastructure gap.

Supporting SMEs and Women-Owned Businesses

Recognising the vital role of small and medium enterprises (SMEs), Dr. Bawumia announced plans to establish an *SME Bank* dedicated to providing financing to small and medium-sized enterprises, which employ over 80% of Ghanaians. Additionally, a Women’s Trade Empowerment Fund would support female entrepreneurs with expansion and working capital.

He assured the CEOs that the proposed initiatives would support Ghana’s industrial growth and create a conducive environment for local businesses to thrive. “A Bawumia Presidency will be for business. All I ask is for business to be with me,” he declared.

Promoting Tech Innovation and Fintech

Highlighting the need to adapt to digital trends, Dr. Bawumia proposed creating a *Fintech Fund* with an initial capital of $100 million to support Ghanaian start-ups focused on payment and financial services innovations. A *Venture Fund* would also be established to provide funding for high-tech projects led by Ghanaian entrepreneurs, driving tech entrepreneurship and innovation.

He mentioned the recent launch of Ghana’s first credit scoring system, *myCreditScore*, which he believes will increase access to credit for Ghanaians, boost domestic demand, and create more jobs. “With this system, Ghanaians can buy on credit – ‘buy now, pay small, small,’” he said, explaining that it would support local businesses by increasing consumer purchasing power.

Reducing Operational Costs for Businesses

Dr. Bawumia also pledged to make electricity more affordable for industries by aligning commercial tariffs with residential rates. Additionally, he promised a streamlined port charge structure to make Ghanaian ports competitive with those in the region, aiming to attract more trade and reduce logistical costs for local businesses.

Dr. Bawumia’s 17-Point Plan to Boost Private Sector Growth

Below is Dr. Bawumia’s comprehensive 17-point plan for private sector development and economic transformation:

1. Tax Amnesty: Provide a complete tax exemption on prior taxes, with the aim of allowing businesses a fresh start.

2. Flat Tax Rate: Introduce a simplified tax regime for individuals and businesses, including merging Value Added Tax (VAT) levies.

3. Electronic Filing: Implement mandatory e-filing of taxes to simplify the process and enhance transparency.

4. Faceless Assessments: Facilitate faceless tax assessments to reduce corruption and improve compliance.

5. Public Infrastructure PPPs: Increase public-private partnerships (PPPs) for building public infrastructure like schools, roads, and water systems.

6. 3 percent GDP Redirection: Cut 3 percent of GDP from government spending and redirect these funds toward private sector infrastructure projects.

7. “Buy Ghana First” Policy: Prioritise local producers and service providers for public sector procurements to stimulate local businesses.

8. Establish an SME Bank: Launch a dedicated bank for small and medium enterprises to meet their unique financing needs.

9. Women’s Trade Empowerment Fund: Create a fund to support women-owned businesses with working capital and expansion funds.

10. Investment Tax Credits (ITC): Offer tax credits for start-up companies in their first three years to encourage growth.

11. Cheaper Industrial Electricity: Equalise or lower commercial electricity tariffs compared to residential rates to reduce industrial costs.

12. Flat Rate for Import Duties: Introduce a flat duty rate to simplify and make import tariffs more predictable.

13. Lower Port Charges: Reduce port charges to make Ghana’s ports more competitive compared to regional ports.

14. myCreditScore System: Leverage a credit scoring system to enable Ghanaians to make purchases on credit, boosting demand and job creation.

15. Fintech Fund: Establish a $100 million fund to support local fintech start-ups and digital solutions.

16. Venture Funding for Tech Projects: Provide venture capital and grant support for commercially viable tech initiatives by Ghanaian start-ups.

17. Digital Land Titling: Complete the digitalisation of land titling and registration to allow property owners to use their assets as collateral for business growth.

Commitment to sustainable development

Having outlined his vision, Dr. Bawumia stressed the importance of sustainable development, particularly for Ghana’s young population. “In Ghana, 73 percent of the population is 0 to 35 years old. This means that about seven in ten Ghanaians are children and young people,” he said. “The present and future generations are counting on us for sustainable jobs and economic prosperity.”

The Vice President concluded by emphasising his dedication to creating a business-friendly, sustainable economy and urged the private sector to partner with him in this transformative journey.