Members of the Ghana Netherlands Business Culture Council (GNBCC) have urged the government to streamline its regulatory compliance processes to improve efficiency.
Additionally, they called for a deeper integration of digitalization in public services to mitigate exposure to corrupt practices in the sector.
During a research-sponsored session by the GNBCC, findings from a study conducted by the IMANI Centre for Policy Education (CPE) were shared.
Titled “Reviewing current economic and investment challenges and opportunities for shared benefits and growth – a focus on the members of the Ghana Netherlands Business and Culture Council (GNBCC),” the report highlighted key recommendations.
According to the Senior Research Fellow at IMANI CPE, Dennis Asare, respondents recommended a review of the existing tax regime to minimize the incidence of duplicating taxes, which significantly raise the cost of doing business in Ghana.
“High regulatory and compliance cost is identified as one of the key cost components for the firms, and the synchronisation of regulatory and permit processes leads to firms paying extra costs through unofficial channels.
Thus, the government must deepen the existing e-government services to ensure that the services are delivered efficiently and reduce the cost of compliance. This will help to reduce the bureaucratic interference of public agencies in the activities of investors,” they recommended during research sponsored by the GNBCC.
“Given that the existing macroeconomic challenges have already increased the cost of doing business for firms, the government must review and align the tax frameworks to minimise the incidence of “duplicating taxes”
“The findings indicate that most of the businesses heard the investment opportunities through GNBCC, which also suggests that the GNBCC will be their first point of contact when they face challenges,” the Research Consultant said.
“The government can work collaboratively with the chambers of businesses to consistently provide regular information on government support in the form of tax reliefs, exemptions and financing opportunities to investors.”
This reduction in the tax burden was deemed crucial for enhancing the competitiveness of firms and attracting Foreign Direct Investments (FDI).
Furthermore, the government was advised to collaborate closely with business chambers to gain regular insights into the challenges faced by investors.
It was suggested that providing consistent information on government support, such as tax reliefs, exemptions, and financing opportunities, would address the limited access to information reported by investors.
As Ghana continues to attract significant FDI, particularly from the Netherlands, stakeholders emphasized the importance of addressing the challenges faced by businesses. Engaging with government agencies to advocate for these issues and ensuring they are reflected in political party manifestoes were highlighted as crucial steps.
The General Manager of GNBCC, Mr. Tjalling Yme Wiarda, stressed the need for government collaboration with the council to continue attracting investors from the Netherlands. He reiterated the commitment of the council to maintaining thriving businesses through effective government relations strategies.
In light of the COVID-19 pandemic and other economic challenges, enhancing investor relations becomes increasingly vital for understanding and addressing the needs of foreign investors. This, in turn, can facilitate the acceleration of FDI flows and the creation of a supportive investment environment conducive to economic growth.