Former President John Dramani Mahama has expressed deep concern over the worsening state of businesses in Ghana, particularly in the Ashanti Region, which he described as the “heart of business” in the country.
Speaking at a campaign rally in Kumasi, Mahama attributed the region’s economic challenges to poor governance under the current New Patriotic Party (NPP) administration, accusing the government of mismanaging policies that have led to the collapse of many businesses.
Ashanti Region: A Hub of Economic Activity in Crisis
Mahama emphasized the strategic importance of the Ashanti Region to Ghana’s economy, noting that it has long been a critical center for business owners, traders, factory operators, and repairers. “When it comes to economic activity, the Ashanti Region stands out as a vital hub in Ghana. If you remove Ashanti from the equation, it becomes difficult to find another area with such concentrated economic activity,” Mahama remarked. “However, whenever there is an economic downturn or financial instability in Ghana, it is most severely felt here in the Ashanti Region.”
The former president outlined how the region’s businesses have been struggling under the weight of high taxes, increased port duties, and a depreciating cedi. Despite the NPP’s campaign promises to address these issues, Mahama noted that conditions have only worsened since the party took office.
Failed Promises and Rising Taxes
Mahama referenced the promises made by the NPP during their campaign, particularly Vice President Dr. Mahamudu Bawumia’s pledge to shift Ghana’s economic focus from “taxation to production.” According to Mahama, this promise has not materialized, and instead, taxes have increased, placing an even greater burden on struggling businesses.
“The promise to shift from taxation to production has proven to be empty rhetoric. In reality, taxes have skyrocketed, leading to the collapse of many businesses that could have created jobs, especially for the youth,” Mahama stated. He pointed out that the tax hikes have forced some traders to find alternative means of importing goods, including bypassing the Tema port and using the Lomé port in neighboring Togo to avoid the high port duties.
The Collapse of Key Sectors
In his speech, Mahama also highlighted the severe impact of the current economic climate on key sectors, notably microfinance and banking. He lamented the closure of 200 microfinance institutions, which has left many employees without work. “Former employees of these institutions are now turning to alternative jobs like driving for ride-hailing services or baking bread to survive,” Mahama said.
Similarly, he noted the collapse of 11 banks in the country, resulting in the loss of over 1,000 jobs. “The banking sector has also been severely hit, with many banks folding, leading to thousands of workers losing their livelihoods,” Mahama added.
By: Shadrack Odame Agyare | Metrotvonline.com | Ghana
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