Jerry Ahmed Shaib
The Minority in Parliament has accused the government of implementing policies that are stifling growth, burdening industry, and undermining the survival of indigenous enterprises.
Delivering a speech on behalf of the Minority Leader, Alexander Kwamena Afenyo-Markin, at the Kwahu Business Forum 2026, the Second Deputy Minority Whip, Jerry Ahmed Shaib said the current policy framework has created a hostile environment for businesses, particularly Small and Medium-Sized Enterprises (SMEs).
He argued that despite assurances to improve the business climate, the government has rather compounded the challenges facing industry through high taxes, rising utility costs, and weak stakeholder consultation.
According to him, engagements with key business groups including the Ghana Union of Traders Association, Ghana Employers’ Association, and the Association of Ghana Industries revealed deep frustrations across the private sector.
“The manufacturer is being squeezed from both ends – costs that government will not reduce, and import competition that it cannot match. No business can plan for growth in such an environment,” he stated.
A major concern raised by the Minority is the high cost of credit and limited access to financing. Mr. Shaib noted that although the benchmark lending rate stands at 10.70 percent, actual borrowing costs for SMEs are significantly higher due to bank charges and collateral demands.
He stressed that between 60 and 80 percent of small businesses fail within their first five years largely due to lack of affordable and long-term financing.
He also criticised the cumulative tax burden on businesses, pointing out that multiple levies, including VAT, NHIL, GETFund Levy and excise duties, are imposed simultaneously without a comprehensive assessment of their combined impact on production.
On energy, he said high utility tariffs are forcing many manufacturers to operate below capacity, not because of weak demand, but because production costs have become unsustainable.
The Minority further took issue with the implementation of the Publican Trade Solution at the ports, describing it as opaque and unfair.
According to the Minority, businesses have been subjected to inflated excise duty assessments without an effective appeals mechanism, creating uncertainty and financial strain for importers.
Equally concerning, Mr. Shaib highlighted what he described as a “consultation deficit” in government policymaking.
He accused the government of introducing major policies without meaningful engagement with stakeholders, only to invite industry players for discussions after decisions had already been taken.
“Effective consultation is not a procedural formality; it is a requirement for sound economic governance,” he stressed.
Beyond the criticism, the Minority outlined a series of policy commitments aimed at improving the business climate.
These include pushing for a statutory framework to ensure pre-legislative consultation, demanding a full review of taxes and tariffs, advocating reforms in SME financing, and calling for parliamentary scrutiny of the AI-driven customs system.
The caucus also pledged to seek an independent review of utility tariffs and establish regular engagements with business associations to ensure their concerns are reflected in policy decisions.
Mr. Shaib emphasised the need to depoliticise entrepreneurship, warning that political interference in business discourages innovation and gives undue advantage to foreign competitors.
He reaffirmed the Minority’s commitment to championing a stable and predictable policy environment that supports local enterprise and drives job creation.
The Kwahu Business Forum, which brings together policymakers and private sector leaders, is focused this year on mobilising leadership support for the sustainability of Ghanaian businesses.
BY Ernest Kofi Adu