What positive change have you brought to sanitation sector? - Franklin Cudjoe queries minister

According to Mr. Cudjoe, Madam Cecilia Dapaah, the Minister for Sanitation and Water Resources is reported to have said newly selected running mate for the National Democratic Congress, Prof. Jane Naana Opoku-Agyemang adds nothing to the fortunes of the NDC.

Mr. Cudjoe in his post stated though the minister's comment is debatable, he tasked her to rather explain to Ghanaians what she has added to the Sanitation ministry in her capacity.

"I just watched the Minister of Sanitation say Prof. Naana Opoku-Agyemang adds nothing to the fortunes of the NDC. We can debate that. It is a healthy debate.

But what has the Minister added to our sanitation positively after almost two years in power? 80% of a clean Accra as her ministry alleged two days ago? What about the mountain of taxes that prevent private sector participation in waste management in Ghana."

He blamed the slow progress made in the Sanitation ministry in the last years because the sector has not been friendly for private sector participation.

"Currently, a compactor truck imported for transporting waste attracts an import duty of 5% on the Cost Insurance and Freight (CIF) value of compactor. It also attracts NHIL levy (2.5%), GetFund Levy (2.5%); Special Import Levy (2%), ECOWAS Levy (0.5%), Exim Levy (0.75%), Processing fee (1%) and AU Levy (0.2%), which add up to 9.45% of the CIF value. In addition, the sector also pays Import VAT of 12.5% on top of these taxes."

Mr Cudjoe further entreated Madam Cecilia Dapaah to focus on these issues which he describes as 'urgent' matters.

"So, madam minister of sanitation- please focus and deal with these urgent matters too."

Read the full statement below:

I just watched the Minister of Sanitation say Prof. Naana Opoku-Agyemang adds nothing to the fortunes of the NDC. We can debate that. It is a healthy debate. But what has the Minister added to our sanitation positively after almost two years in power? 80% of a clean Accra as her ministry alleged two days ago? What about the mountain of taxes that prevent private sector participation in waste management in Ghana.

Currently, a compactor truck imported for transporting waste attracts an import duty of 5% on the Cost Insurance and Freight (CIF) value of compactor. It also attracts NHIL levy (2.5%), GetFund Levy (2.5%); Special Import Levy (2%), ECOWAS Levy (0.5%), Exim Levy (0.75%), Processing fee (1%) and AU Levy (0.2%), which add up to 9.45% of the CIF value. In addition, the sector also pays Import VAT of 12.5% on top of these taxes.

Currently, the waste industry operates at a profit margin of 20% (From the existing data in the cost buildup of the various landfill sites). However, this profit margin is reduced to 7.5% since they treat 12.5% of their revenue as output tax. In addition to that, the sector also absorbs the non-deductible combined 5% import NHIL/GetFund levies which further reduces their profit margin to 2.5%.

One Professor Mariwah recently asked me and others in a webinar I moderated that," how do such companies accumulate enough capital to reinvest in waste collection trucks and other machinery as well as invest in Research and Development (R&D) to improve waste management in the country?”

Ama Ofori-Antwi, Executive Secretary of ESPA recently said to me and others on the webinar, "Upon taking up this role as Executive secretary with ESPA, I can say confidently 22 companies have collapsed since 2014 to date; we are providing essential service in this country meanwhile we are not getting any support whatsoever; if the government is indeed serious about the private sector been the engine of growth, then the government needs to look at us”

So, madam minister of sanitation- please focus and deal with these urgent matters too."