More work needed to boost private sector growth

Every government assumes the reins of government to help improve the lives of the people they govern. This is purely based on what they perceive to be the right way to go.

For instance, the Mahama administration focused more on building the country’s infrastructure which had seen less attention under previous governments.

In the case of the present administration, developing the private sector is the way forward. It believes that once the private sector works, the economy will be transformed and jobs and wealth will be crated for all.

This show of commitment was reinforced when President Nana Addo Dankwa Akufo-Addo received a high-powered delegation from the Ghana Chamber of Commerce and Industry (GCCI), led by its current president, Nana Appiagyei Dankawoso I.

According to President Akufo-Addo, his government had resolved to use the private sector to transform the economy and create the needed jobs for the people. 

Using industry and agriculture, the President, who sounded optimistic about his plans, said the two had been identified by the government as the most critical sectors of the economy that could bring the needed transformation that many yearned so much for.

The Graphic Business finds the pledge and commitment of the President as most refreshing, reassuring and heart-warming because of the impact these will have on the confidence of the players in the private sector.

The paper is even more excited by the various tax waivers and cuts announced in the 2017 budget statement and government economic policy which are meant to free private sector businesses of funds to enable them to expand and create jobs, become competitive on the international market, as well as create wealth for themselves and the state.

Having shown this commitment, we also prevail on the government to critically consider other challenges hindering the growth of the private sector. For instance, energy, water, sanitation, telecoms and transport have long been identified as a major setback to trade on the continent and Ghana is no exception.

We have had many years of energy crisis, the cities are engulfed in filth, access to water in many areas is lacking, while access to telecoms is not nationwide and services, particularly data consumption, is extremely high.

Infrastructure also continues to be a challenge in spite of what the previous administration did. According to the World Bank, about $93 billion is needed annually to be able to fund Africa's infrastructure for the next 10 years, which is about 15 per cent of the region's GDP. In Ghana, $2 billion is required annually.

The paper also points to the need for financial sector development and would want the government to strengthen regulatory and institutional frameworks to improve governance and increase competition, improve access to finance and financial literacy; and develop better and more secure payment systems while enhancing creditor rights.

We are very much aware that access to cheap finance by the private sector is very key. However, this continues to be a major challenge as well.

It is against this background and other factors that we would implore the government not to lose sight of these challenges in its quest to boost the morale of the private sector to transform the economy. A lot more work needs to be done to fully make the private sector the engine of growth and those assigned the responsibility of softening the grounds for the sector must get to work.