Dr. Bawumia Pledges to Formalize Indigenous Businesses to Boost Growth

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Dr. Bawumia Pledges to Formalize Indigenous Businesses to Boost Growth

Accra, March 25, 2024 – Vice President and Flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has outlined a key policy initiative aimed at formalizing indigenous businesses in Ghana to enhance their recognition and facilitate their growth.

Addressing members of the Council of Indigenous Business Association of Ghana (CIBA) at a consultative meeting in Accra, Dr. Bawumia emphasized the need to formalize indigenous businesses, which constitute a significant portion of the business community in Ghana. He highlighted the challenges posed by the informal status of many indigenous businesses, stressing that their exclusion hampers effective policy planning and impedes their potential for growth.

“Many indigenous businesses are not formalized, and they have been sadly excluded. This exclusion does not augur well for formulation of policies and planning, as well as the growth of these businesses in the informal sector,” remarked Dr. Bawumia.

He urged indigenous businesses that have not yet been registered to take steps to formalize their operations and become recognized members of the Ghanaian business community. Dr. Bawumia pledged to engage with the leadership of CIBA to facilitate the formalization of their members’ businesses and ensure their registration with the Registrar-General. Acknowledging the significant contributions of indigenous businesses to job creation and economic development, Dr. Bawumia underscored the importance of their formalization and inclusion in the formal economy.

“As we seek to get your businesses formalized, it is also important to further simplify business registration process to encourage more people to register,” added Dr. Bawumia.

He highlighted Estonia’s streamlined business registration process, which takes approximately 30 minutes, expressing his determination to replicate such efficiency in Ghana to promote business formalization.

During the meeting, Dr. Bawumia engaged with members of CIBA, addressing their questions and suggestions while elaborating on his proposed tax reforms. He outlined plans for tax reforms in 2025, including a tax amnesty for businesses and individuals, the implementation of a flat rate tax for businesses, and the cancellation of certain taxes, including the contentious e-levy.

Dr. Bawumia emphasized that the objective of these tax reforms is to bolster businesses, enhance transparency, and simplify the tax system, which he acknowledged as cumbersome for many. The consultation with CIBA reflects the government’s commitment to engaging with stakeholders and implementing policies aimed at fostering a conducive environment for business growth and development in Ghana.

The membership of CIBA comprises various sectors, including the Ghana National Association of Garages, the National Drinking Bar Operators Association, the Ghana Bar Operators Association, and other key segments contributing to the vibrant indigenous business landscape in Ghana.

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