The influx of foreign participation in Ghana’s business ecosystem poses some threats to Ghanaian business especially due to the tax exemptions and other benefits they enjoy.
Foreign companies enjoy some tax exemptions and/or holidays that give them some footing when they set up in Ghana.
Most of these companies are often accused of repatriating a larger percentage of their profits to their home countries which mostly accounts for the depreciation of the Ghana cedi.
The founder of A&C Mall, Dr Andrew Asamoah, has bemoaned the lack of intentionality of the side of the government to assist indigenous Ghanaian businesses to thrive.
According to him, having left Europe for Ghana to set up what would become Ghana’s first and oldest mall 20 years ago, he has not enjoyed any benefits whatsoever from the government.
Meanwhile, other foreign companies have come to Ghana to set up businesses and have had up to 10 years of exemptions and/or tax holidays, he said.
Dr. Asamoah listed this among the reasons Ghanaians abroad do not find it attractive to come back to set up businesses.
Speaking in an Odana TV monitored by GhanaWeb, he said: “That is one part I think the government don’t make a conscious effort to help and support indigenous Ghanaians or Africans to come and establish businesses. For example, I established my company 20 years ago, A&C is 15 years we are building two other malls. I’ve not got any exemption from the country but I know foreign companies, they come and they give them exemptions sometimes five years, ten years.”
The founder who had to sell his properties abroad to raise money to start his company due to the lack of credit facilities in Ghana urged the government to develop a framework that allows or creates an enabling environment for more indigenous businesses to flourish.
“So, the government should make a conscious effort. I have colleagues; one of them went to Malaysia the other went to Indonesia, they only went with ideas but the government helped them.
“The government should make an effort, a specific effort. The only problem I see sometimes is politics, there should be a system set together to see whoever comes you are supported. I think that is something that is lacking from the government and that discourages people from coming to Ghana,” he added.
Tax exemptions