‘Hostile business environment cause of high unemployment’

The Minority in Parliament says as a result of the suffocating and hostile business environment in the country, unemployment rate is skyrocketing and businesses are in a state of near collapse.

According to the Members of Parliament (MPs), heavy taxes imposed by government on Ghanaian businesses are "insensitive".

Although they could not back their claims of unemployment and the state of near collapse of many businesses with statistics, the MPs said Ghana has also dropped on the World Bank ranking on the ease of doing business index – from B+ to B.

But citing the May 2013 Bank of Ghana Monetary Policy Report, the Minority MPs said, “As at the end of April 2013, the private sector accounted for 91.9% of the total non-performing loans in the country”.

MP for Wenchi, Professor George Gyan-Baffour, made these remarks on behalf of the Minority when he addressed a news conference on Tuesday July 16, 2013.

The Minority also noted that the erratic supply of water and electricity in the country, deterioration of the cedi and instability in the foreign exchange market has also compounded the situation for businesses in the country.

“Because water supply is insufficient and erratic, the mining companies and the breweries are now importing water from La Cote D’Ivoire,” Prof. Gyan Baffour noted.

Professor Gyan-Baffour also warned that the imposition of import levy on some agricultural machinery and inputs as well as condoms, will further worsen the plight of the ordinary Ghanaian.

He said government was being insensitive with the excessive taxes and charged decision makers to instead focus on ending corruption and “reckless spending”.