NPP government has collapsed many businesses – Mahama

Former President John Dramani Mahama has expressed grave concerns over the state of businesses in Ghana, particularly in the Ashanti Region, which he described as the “heart of business” in the country.

Speaking during his campaign in Kumasi, Mahama blamed poor governance under the New Patriotic Party (NPP) for the economic challenges plaguing the region, leading to the collapse of many businesses.

“When considering business owners, traders, factory operators, and repairers, the Ashanti Region stands out as a significant hub in Ghana,” Mahama said. “If you exclude the Ashanti Region, it is challenging to find another area with such concentrated economic activity. This is why, whenever there is an economic downturn or financial instability in Ghana, its effects are most strongly felt in the Ashanti Region.”

Mahama highlighted the struggles faced by business owners in the region due to policies implemented by the NPP government. He pointed out that issues such as high taxes, excessive port duties, and the weakening cedi have worsened since the NPP took office, despite the party’s earlier promises to address these problems.

“During the National Democratic Congress (NDC) administration, concerns were raised about high taxes, excessive port duties, and the weakening cedi. At the time, the exchange rate of the cedi to the dollar was 4 cedis, and the NPP criticised these challenges. However, when the NPP came to power, the situation worsened,” Mahama said.

He explained that the high taxes and port duties have forced some traders to seek alternative routes for importing goods. “Many traders can no longer clear their goods at the Tema port due to exorbitant taxes. As a result, some now use the Lomé port in Togo and hire trucks to transport their goods to Ghana.”

Mahama also took a swipe at Vice President Dr. Mahamudu Bawumia’s promise to shift Ghana’s economy from “taxation to production,” stating that the reality has been the opposite. He noted that increased taxes have crippled businesses that could have created jobs, particularly for the youth.

“The promise made by Dr. Bawumia to shift the economy from ‘taxation to production’ has not materialised. Instead, taxes have increased significantly, leading to the collapse of many businesses that could have provided jobs for the youth,” Mahama emphasised.

Citing specific examples, he lamented the downfall of the microfinance and banking sectors. “The microfinance sector has seen the closure of 200 companies, leaving former employees to resort to ventures such as driving for ride-hailing services or baking bread. Similarly, the banking sector has experienced the collapse of 11 banks, resulting in the loss of 1,000 jobs,” he added.

The former president’s remarks have sparked debate among political and business circles, with many calling for urgent measures to address the economic challenges. As the campaign season intensifies, the state of the economy and its impact on livelihoods remain central to the discussions.