ICEG calls for better conditions for businesses
The Chief Executive Officer (CEO) of the Institute of Certified Economists of Ghana (ICEG), Mr Daniel Ameteye Anim, has urged the government to create a conducive environment for businesses to thrive.
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That, he said, was necessary because businesses in the country needed to operate in a free environment in order to develop and support the country’s economy.
“It is crucial for the government to develop a strategy that will improve the current economic challenges in the country,” Mr Amin said when he made the call on the sidelines of an event to confer a fellow award to the Chief Executive Officer (CEO) of the Royal Bank, Mr Robert Kow Bentil, in Accra.
He added: “Doing that would prevent foreign investors from taking over institutions and organisations started by Ghanaian entrepreneurs. It is crucial for the government to develop a strategy that will empower local financial institutions in order for them to meet the required capital standards set by the central bank, so that they can also provide financial support to other businesses for the socio-economic development of the country.”
He cited the sharp cedi depreciation, energy supply challenges, inflation pressures, high interest rate regime and excessive taxes as factors that weighed down business growth.
Concerns
The government has recently come under criticisms from business concerns for its excessive tax policies. The Association of Ghana Industries (AGI) has identified excessive taxes as one of the main problems hindering the operations of its members in its 2016 Business Barometer Report for the first quarter.
The Chartered Institute of Taxation Ghana (CITG) has backed calls for the suspension of the new Income Tax Act, 2015 (Act 896), describing portions of the law as a mockery of the international guideline on taxation.
Beyond being counter-productive, the institute indicated that the government’s desire to mobilise more revenue through taxes caused it to overlook pertinent regulations on taxation during the formulation of the Act; hence, the need to suspend its implementation until such flaws have been addressed.
It mentioned the introduction of the one per cent windfall tax on companies enjoying tax holidays, the adjustments made to the capital gains and withholding taxes and the new 10 per cent withholding tax on the purchase of unprocessed minerals as some of the provisions that were counter-productive and contrary to the general regulations on taxes.
Mr Anim subsequently appealed to the Bank of Ghana to come out with holistic measures that will allow financial institutions to grant loans to entrepreneurs at an acceptable rate in order for them to expand their businesses.
Fellow award
Meanwhile, the Institute of Certified Economists of Ghana (ICEG) has conferred a fellow award on the Chief Executive Officer (CEO) of The Royal Bank, Mr Robert Kow Bentil, for his contribution to the country’s banking sector.
The fellow award, which is the highest in the institute, was conferred on him at the head office of The Royal Bank in Accra.
The President of the institute, Professor Peter Tuffour Asubonteng, presented the certificate, a cap, a gown and academic hood to Mr Bentil.
Citation
A citation presented to the CEO read: “Your professional contribution to the financial sector is enormous and deserves critical recommendations.”
“Mr Bentil since December, 2012 when you were appointed as the first Managing Director of The Royal Bank, your generic leadership qualities, hard work, team work, tenacity, and high sense of professionalism positioned The Royal Bank as a fast growing bank, as well as an emerging brand in the banking industry,” it stated.
“Under your strategic leadership, the Royal Bank has earned a number of awards and is still penetrating the market with innovative products. The Institute of Certified Economists of Ghana, in recognising such achievement, do hereby confer fellow award on you, the highest grade of the institute,” it added.
Gratitude
In his address, the CEO expressed gratitude to the institute for the honour done him.
“I am grateful to ICEG for recognising my contribution to the country’s financial sector. It is, however, a great honour having great personalities in the country present here to honour me,” he said.
Support the private sector
The chairman of the event, Dr Ebenezer M. Ashley, called on banks to help support start-up companies with the needed funds to enable them to take off and grow.
That, he said, would help make the economy industrious while reducing the massive unemployment rate in the country. He added that banks stood the chance of growing their asset base should they lend more support to the private sector instead of the government.
Banks and other lending institutions in the country have argued that it is too risky for them to support start-ups with funds from their customers when there is no guarantee in cases of default.
He subsequently tasked the banks to desist from demanding collateral from start-ups before advancing money to them, but rather help educate the businesses on how best to service loans granted to them.