Domestic Manufacturers Call for Tax Reforms to Boost Industry Confidence

Domestic manufacturers have criticized the current tax regime, calling it counterproductive and urging the next government to prioritize meaningful reforms in its first budget to restore confidence in the industry.

Key concerns, including the value-added tax (VAT), import duties on raw materials, and import discounts on locally producible products, were raised by Dr. Humphrey Ayim Darke, President of the Association of Ghana Industries (AGI).

Dr. Ayim Darke emphasized that businesses are looking to the incoming government to implement comprehensive, progressive reforms and provide incentives for local producers. These measures, he stressed, are essential for accelerating the recovery from Ghana’s recent economic challenges.

“In the coming year, AGI expects the new government to bring more innovation in macroeconomic management and fiscal rationalization, especially in consolidating the gains made under the International Monetary Fund (IMF) program,” he said.

Dr. Ayim Darke made these comments at the AGI’s 64th Annual General Meeting (AGM) and job fair held in Accra, under the theme “Navigating the Uncertainties of the Business Landscape to Sustain Productivity.” The event highlighted the resilience of Ghanaian industrialists as they navigate global disruptions, such as trade instabilities, climate change, and economic challenges.

The AGM served as a platform for industry stakeholders to discuss strategies for growth and resilience in an increasingly complex global market.

GEPA Emphasizes Export Growth and Collaboration

At the event, the Chief Executive Officer of the Ghana Export Promotion Authority (GEPA), Dr. Afua Asabea Asare, discussed progress under the National Export Development Strategy (NEDS). Launched in 2020, the strategy aims to increase non-traditional export revenues from US$2.85 billion in 2020 to US$25.3 billion by 2029.

Since its implementation, non-traditional export revenues have risen to nearly US$4 billion in 2023, driven by products such as processed cocoa, iron and steel, aluminum, and plastic items. Dr. Asare highlighted the importance of collaboration between GEPA and AGI, noting that many AGI members are also exporters supported by GEPA’s programs.

“A strong AGI working together with GEPA and other stakeholders will help us achieve the ambitious export target by 2029,” she said.

Dr. Asare also shared GEPA’s initiatives to revitalize key export crops such as pineapple, cashew, and coconut. The authority has also focused on providing capacity-building programs for over 650 export-oriented SMEs, as well as empowering women-led businesses and youth exporters through mentorship, training, and targeted support.

Additionally, GEPA has established the Ghana Trade House in Nairobi, Kenya, to promote Ghanaian products in East Africa and plans to expand to other markets like Sierra Leone. Domestically, GEPA has refurbished the Aburi Craft Village, providing local artisans with production equipment to enhance the quality of export goods.

“Achieving our export goals will not be easy, but each step brings us closer to a self-reliant and prosperous Ghana,” concluded Dr. Asare.

AGI’s Commitment to Industrial Growth

Dr. Ayim Darke reiterated AGI’s commitment to supporting industrial growth and sustainability through effective policy advocacy and business services. He praised the AGI secretariat and regional offices for their dedication to supporting members, especially during a year marked by mixed business sentiments due to unstable macroeconomic conditions.

The AGI remains focused on advocating for policies that foster a stronger, more resilient industrial sector in Ghana.