Consultative Meeting Of Bilateral Chambers Of Commerce

 

Ghana remains attractive to significant foreign direct investment (FDI). Major multinational companies are in Ghana due to its relative peace, strong democratic culture and good governance, rule of law, educated workforce, and welcoming population. Ghana’s leadership on the international economic stage is epitomized by the hosting of the Africa Continental Free Trade Agreement (AfCFTA) Secretariat in Accra, bolstering the country’s position as a major commercial hub for the continent.

The undersigned, a group of bilateral trade associations representing the interest of international and local companies operating in the country, having invested significantly, employing mainly Ghanaians, and paying taxes, wish to draw the government’s attention to the following which threatens the country’s position as a leading and favorable destination for business and investment.  We are also not oblivious of the current economic challenges and the proposition that all must contribute their share to the solution.  However, we are convinced that given the right incentives and the desired operational flexibility with less interference, the private sector shall provide the needed resources for Ghana’s long-term growth and prosperity.

The matters of great interest to the bilateral trade associations include the following:

  1. The Government has our unbridled support in its negotiations with the International Monetary Fund (IMF) and we endorse the initiatives to mobilize domestic revenue for the country’s development. Our member companies are all in the formal sector and known large taxpayers. They are, however, deeply concerned about the perceived predatory nature and outright harassment by Ghana Revenue Authority (GRA) officials in the conduct of audits and the resulting imposition of penalties as part of efforts to collect more taxes from companies that are already large taxpayers.  Our member companies expect greater consultative opportunities in the development and rollout of tax reforms.

 

  1. In our opinion, a partial or full recovery from the current challenges is largely dependent on the private sector creating more jobs and hence, paying more taxes. In this regard, we urge the government to harmonize all legislation, rules, and regulations to spur coherent private sector participation in the economy.  While our member companies fully support and encourage local content development and participation, for example, its implementation must not threaten or undermine the existing ecosystem.  The rigidity of localization regulations is threatening investments in the mining, energy, and digital/communications sectors.

 

  1. Our members are unsettled by delays in payment for the supply of government goods and services as well as the seeming challenges with contract sanctity and the perceived lack of transparency and interference with government-to-business contracts. Smart investment chases a business environment grounded in consistency and predictability.  The pool of would-be investors is small, and they talk to one another. Word spreads fast when business conditions deteriorate, causing a ripple effect that can impede investment for years to come.

 

  1. We stand in solidarity with the efforts to stabilize the depreciating currency which has lost more than 50% of its value against the major currencies in 2022. We want the Bank of Ghana (BoG) to maintain an open and fair line of communication with investors on the issue of repatriation of profits and the availability and management of foreign exchange for businesses to import essential inputs for manufacturing. Further, the BoG must also publicly communicate the modalities on its outright cessation of providing foreign exchange for some critical imports to avoid likely shortages.  On this point, it is worth noting that South Africa had to halt the imposition of its import tariff on poultry to avert a food crisis.  Poultry remains a cheap source of protein for many in the country.

 

  1. We intend to collaborate more closely with local trade groups on matters of mutual concern particularly on using more local content in manufacturing.

 

Signed:

Simon Madjie 

American Chamber of Commerce in Ghana (AmCham Ghana)

 

Adjoba Kyiamah

UK-Ghana Chamber of Commerce (UKGCC)

 

Armelle Sae-Jeanne

Chamber of Commerce and Industry France Ghana (CCIFG)

 

Nicolas Gebara

European Chamber of Commerce in Ghana (EUROCHAM Ghana)

 

Edwina Atta-Sonno

Canada Ghana Chamber of Commerce (CANCHAM Ghana)

Video: GRA Will Be Aggressive So You Must Be Prepared – Abeku Gyan-Quansah

PwC Ghana Tax Partner Abeku Gyan-Quansah during his presentation at the just-ended AmCham Ghana 2023 Ghana Economic Outlook Forum advised businesses to be compliant and prepared as the GRA will be aggressive with its revenue mobilization drive.

AmCham Ghana Host 2023 Ghana Economic Outlook Forum

The American Chamber of Commerce, Ghana, on Tuesday, February 21, 2023, hosted the 2023 Economic Outlook Forum on the theme, Navigating Through Uncertain Economic Conditions – A Pragmatic Approach.

Ghana’s economy is at a turning point, and the focus of the 2023 Economic Outlook forum was to provide members with insight on how to protect their businesses and work through the various stringent revenue mobilization strategies being adopted by the government of Ghana and as well provide an overview of the general economic outlook for 2023.

Speakers for this year’s forum were Abeku Gyan-Quansah, a Tax Partner at PwC, and Prof. Eric Osei-Assibey, Associate Professor and Dean of the International Programmes Office at the University of Ghana. Their presentations covered practical approaches to avoiding and mitigating the impact of GRA’s current revenue mobilization agenda, the operationalization of the new tax regime, understanding the implications of the impending IMF program, the complexities of the government’s Domestic Debt Exchange Programs, projected micro and macroeconomics conditions and their impact on the businesses environment and the monetary policy direction of the country.

Abeku Gyan-Quansah advised businesses to be compliant and prepared as the GRA will be aggressive with its revenue mobilization drive. He asked businesses to be VAT ready and check allied rates, especially with purchases, and encouraged them to consult broadly on these issues. “The government is planning to raise about 122 billion. What does this mean? So, as a company, you pay your income tax and withhold taxes from your employees. When you pay people, you withhold taxes, so if you fail to withhold taxes then it means that if the government’s projections were done correctly, then we may now miss out on the 112 on the account that you did not withhold and the person who should remit the amount to the government of Ghana also failed to do that.”

“As we run our businesses, we are required of certain compliance measures, and if we don’t then we all run a risk of not raising the 112, and the government during their mid-year review may want to introduce additional measures to close up the gaps,” he added.

Mr. Gyan-Quansah also indicated that companies should expect an increased tax base and cost of production due to the increase in VAT, excise duty, deemed vehicle benefit, and benchmark discount policy.

Prof. Eric Osei-Assibey also indicated the assertion that inflammation peaked in Q1 might not be definite. He acknowledged that there had been a marginal decline in inflation in January, which could suggest that inflation has peaked to a certain extent.

However, he pointed out that new taxes and increased utility tariffs, which are yet to be implemented, have the potential to further increase inflation.

The  Professor also indicated that the bailout program is expected to significantly impact the country’s economy, particularly concerning the Central Bank’s ability to build up reserves, which would provide the necessary support to strengthen the local currency.

The Q&A session moderated by AmCham Ghana Executive Secretary, Simon Madjie, allowed participants and speakers to delve into the issues of currency depreciation and inflation and what companies can do to mitigate their impacts.

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KEK Insurance Brokers Pay Courtesy Call On AmCham Ghana

Representatives from AmCham Ghana member company KEK Insurance Brokers paid a courtesy call to the Chamber on February 8, 2023, to engage with the Manager for Membership, External Relations, and Project, Jane Okyere-Aduachie.

The visit is in line with the Chamber’s commitment to continually engage member companies to identify the various challenges they face doing business in the country to inform our advocacy efforts.

KEK Insurance Brokers is a multinational insurance broking firm with subsidiaries in Ghana, Sierra Leone, and Liberia. KEK partners with the leading global insurance broking firms to provide enhanced broking services to both local and multinational firms in all sectors of the economy.

They provide life and non-life insurance broking as well as risk management consultancy to businesses, households, and individuals.

KEK Insurance Brokers is well-placed to add value to the businesses of clients in a profitable way by providing quality, professional, excellent, and time-bound management of clients’ insurance programs.

The Chamber also agreed to partner with KEK on various events and activities to advance our mutual interests.

Sewia Mining Limited Joins AmCham Ghana

The American Chamber of Commerce, Ghana, is pleased to announce Sewia Mining Limited as a new #GoldMember of the Chamber.

Sewia Mining is a Ghana-based LLC providing precious metals and comprehensive logistics services to clients all over the world. Since 2016, they have been part of Ghana’s ingenious precious minerals industry providing minerals ranging from gold, diamonds, and other gems with an operating license from the Minerals Commission.

The company is focused on the acquisition, exploration, and sourcing of gold with the objective of providing value for its clients and stakeholders.

Sewia Mining’s vision is to become the leading contracting firm in the gold sourcing and mining industry.

 

CONTACTS

HEAD OFFICE

4 Lavender St, GW-1003-4504
GA West, Accra.

https://sewiamining.com/

P:

  • +233 (0)302 422 276
  • +233 (0)243 243 493
  • +233 (0)553 346 511
E:

  • info@sewiamining.com
  • sewiamining@gmail.com

ATC Senior Director For Public Affairs And Regulatory Pay Courtesy Call On AmCham Ghana

The Senior Director of Public Affairs and Regulatory for Africa at American Tower Corporation (ATC), Lucretia Deean Fontaine, on Tuesday, January 31, 2023, visited the Chamber to engage with Executive Secretary, Simon Madjie and Manager for Membership, External Relations and Project, Jane Okyere-Aduachie.

ATC is the largest independent owner and operator of shared wireless infrastructure in Ghana. The meeting was to discuss the company’s operations and fashion out avenues for collaboration with the Chamber to advance their interest.

According to Deean Fontaine, ATC is focused on making a positive impact, and associating with AmCham Ghana makes it easier to attain these objectives.

ATC’s Digital Communities Program provides fully equipped ICT Education Centres throughout Ghana to create digitally empowered communities where users can learn without barriers.

The Digital Communities are learning centers that use uninterrupted electrical power and internet connectivity from ATC’s tower sites to provide free ICT learning in the communities they serve.

AmCham Ghana Executive Secretary, Simon Madjie, reiterated the Chamber’s commitment to seeing businesses thrive and assured Deean Fontaine of our preparedness to advocate, partner, and collaborate with the company on any activity that advances their course.

ATC provides towers, in-building systems, power solutions, and services that speed network deployment for the wireless and broadcast communications industry.

American Tower Corporation’s global portfolio includes approximately 223,000 communications sites, including more than 43,000 properties in the United States and Canada and approximately 180,000 properties internationally.

AmCham Ghana Welcome Reception

The American Chamber of Commerce, Ghana, on Thursday, February 2, 2023, hosted members for its maiden 2023 event dubbed the AmCham Ghana Welcome Reception at the Chamber’s Secretariat in Accra, Ghana.

The event was to create a networking opportunity for members to interact and form new relations and possible business partnerships for future collaborations. The Chamber aims to host more of these events to promote the establishment of interpersonal relationships within the AmCham network.

Present were the AmCham Ghana President, Ayesha Bedwei-Ibe, executives and representatives from members, and associates of the Chamber.

The event was supported by Delta Air Lines, an AmCham Ghana platinum member.

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AmCham Ghana Backs AGI’s Call To End Discrimination In Water Tariffs

The American Chamber of Commerce, Ghana, backs AGI’s call on the Public Utilities Regulatory Commission (PURC) to end discrimination in water tariffs. We are of the opinion that the recent upward tariff adjustments and the reclassification of Bottled Water and Beverage producers to the Commercial (Special Commercial) category are unfair and place an undue burden on companies.

The Chamber appreciates the country’s current economic situation and the need for utility companies to adjust prices to reflect the changes in the cost of production and inflation. Still, some of these decisions reaffirm the perceived discrimination in the allocation of water tariffs.

Recatorizing Bottled Water and Beverage producers with a 172% tariff increment (GHc 30.00/1000L) is astronomical and unfair. This increment, coupled with increasing inflation, currency fluctuations, the new 21.9% VAT rate, and the proposed increments in Excise Duty rates, is disincentivizing and puts companies in a precarious situation.

Industry is also currently baring the shocks and challenges posed by prevailing local and global issues, and we deem it unfair the seeming shifting of economic burdens to companies already making tremendous efforts to keep their operation running to sustain the economy.

Maintaining employment is vital to the country’s economic recovery efforts. But current trends negatively impact the profitability of companies and could lead to massive job cuts if pragmatic steps are not taken to address the constant increase in the cost of doing business.

We will call on the PURC to review its decision to place bottled water and drink producers in a new category that attracts higher tariffs. We are of the persuasion that maintaining the sector in the Industry category as it has always been will ensure equity and helps dismiss perceived discrimination.

The Chamber also backs earlier calls from the AGI to the PURC to make public the actual cost of service for each consumer category for transparency and fairness.

As an organization representing companies with operations in the Bottled Water and Beverage Industry, the Chamber is convinced that it is prudent to revise this reclassification and also ask the PURC to conform to its advertised rates as the new February tariff increase of 48% for industry is higher than their earlier announced average increment of 8%.

Our member companies are high-revenue customers of the Ghana Water Company, and addressing these issues will ensure constant revenue for the utility company.

The Chamber calls for further dialogues between the PURC and our member companies to resolve these issues in the interest of all stakeholders to protect businesses, ensure jobs and help maintain a favorable business environment to boost investment.

Signed,
Simon Madjie
Executive Secretary

Global Mamas Releases Sustainable Events Collection With Help From PYXERA Global Facilitated 3M Impact Elevate Pro Bono Program

It’s finally here – event supplies that are good for people and the planet! The Sustainable Events Collection is the result of a fruitful collaboration between a 3M Impact Elevate (formerly known as “Catalyst”) pro bono program facilitated by PYXERA Global(www.pyxeraglobal.org) and Global Mamas ( www.globalmamas.org) that kicked off in 2020. Concerned about the amount of plastics and waste witnessed as conference attendees, Global Mamas saw an opportunity to reinvent event materials using the basic principles of a circular economy. Global Mamas worked with 3M Impact Elevate program to bring fresh and innovative solutions to Global Mamas’ vision of providing eco-friendly products to the many corporate events taking place each year in Ghana.

By sustainably harvesting an invasive weed growing in the Volta River, known as water hyacinth, Global Mamas discovered how to produce paper products that help improve the river’s biodiversity as well as support waterway-dependent livelihoods. With a fresh perspective, a dynamic team of 3M Impact Elevate executives validated the business idea and guided the planning and development of products for greener events that also promote sustainable livelihoods in Ghana.

Global Mamas is launching the Sustainable Events Collection as a result of this work. The collection is fair trade and handmade from 100% renewable and/or upcycled materials. The collection includes a name badge with batiked organic fabric scrap neck strap, a notebook made from water hyacinth paper wrapped in batiked organic cotton fabric scraps and recycled glass bead closure, folders customized with company or event logos, and swag bags made from a sturdy but flexible formulation of hyacinth paper and twisted stems for handles or swap those for an upcycled flour sack tote.

With the assistance of such pro bono technical interventions from the 3M Impact Elevate Program and partners like PYXERA Global, Global Mamas is eager to work with companies that are ready to distinctly show their commitment to sustainability by including fair trade, handmade, sustainable conference products at their next corporate event! For more information, contact Allison Greene (allison@globalmamas.org).

Ghana’s Ambassador To The United States Visits Cargill Ghana

On Tuesday, January 24, 2023, Ghana’s Ambassador to the United States, H.E. Hajia Alima Mahama, paid a courtesy visit to Cargill’s state-of-the-art cocoa processing facility at the free zones enclave in Tema, accompanied by AmCham Ghana Executive Secretary, Simon Madjie, and the Chief Commercial Officer and Head of the One District One Factory (1D1F) Initiative at the Ministry of Trade and Industry, Kofi Addo.

This was part of the Ambassador’s engagement with U.S. companies in Ghana under the auspices of the American Chamber of Commerce, Ghana.

Ambassador Hajia Alima Mahama interacted with the Managing Director of Cargill Ghana, Aedo van der Weij, and other managers to understand the company’s operations and was given a tour of the plant to meet with the various employees as well as have an experience of the different stages of cocoa processing.

Cargill has been sourcing cocoa from Ghana for over 40 years, and in 2008 opened its state-of-the-art cocoa processing facility in Tema, employing around 240 employees processing cocoa products to service food and confectionary customers locally and around the world. Cargill, also through its various activities in the cocoa supply chain, provides about 750 direct jobs, the majority of which are locals.

The Ambassador was impressed by Cargill’s deliberate efforts at employing and empowering locals. She said it is indicative that given the right conditions and resources, Ghana has the human resource to support industries.

In 2016, Cargill added a Licensed Buying Company (LBC) to its Ghanaian footprint. The LBC operations bring innovative ways to trade with farmers directly, emphasizing their sustainability and traceability efforts.

The company has invested over $3.2 million into sustainability programming with partners CARE and the International Cocoa Initiative to address the educational gap in 250 communities in the Western North region of Ghana by providing school buildings.

The Ambassador was also honored to plant a symbolic cocoa tree in the middle of the Cargill garden. A gesture of goodwill and Cargill’s commitment to Ghana’s cocoa sector.