News:
July 16, 2013
The Minority in Parliament have asserted that the private sector which is supposed to be engine of growth is bleeding profusely due to the mismanagement from the economy by the Mahama-Amissah Arthur government.
According to them, the high cost of credit to businesses, unreliable and inadequate supply of utility services and imposition of taxes, lead to high cost of doing businesses, all of which has injured the investment climate.
Addressing a Press Conference, Professor Djan Baffour, a Former deputy Finance Minister on behalf of the Minority stated that the problem that are destructing the business community could send signal to prospective investors, both within and outside Ghana that the country is not a comfortable place for investment.
Prof Djan Baffour said the 2012 AGI fourth quarter Business Barometer, access credit was identified as the top most challenge limiting growth of the private sector.
He said again in the AGI 2013 1st quarter Business Barometer, access to credit continues to be a major constrain and was the second most important constraint to growth of the private sector.
He noted that credit to private sector as a percentage on GDP has been falling gradually from about 16 percent of GDP in 2008 to 16.2 at the end of expanded oil economy in 2012 and continues to decline.
This is because of the excessive borrowing of the government which has resulted in the high level of interest rate and made credit very expensive to private sector businesses and crowding them out of the market from loan-able funds.
Prof Baffour added that the delayed payment to contractors and other people who render goods and services are strangling businesses and affecting the operations of banks where a lot of them are defaulting on dealing of their loans.
He questioned that the imposition of import levies on some agricultural machinery and inputs as well as condoms will further worsen the plight of the ordinary Ghanaian.
Kwadwo Anim/GhanaMPs.gov.gh