AmCham Ghana AfCFTA Resource Centre Hosts Training Session On How To Export Under AfCFTA

 

The AmCham Ghana AfCFTA Resource Centre, under the auspices of the American Chamber of Commerce, Ghana, and in partnership with the Africa Trade Academy, on March 3, 2023, hosted a training session on the topic, Expanding into African Markets: How to Export Under AfCFTA, to provide members with insight on the various aspects of the agreement to ensure optimization of the opportunities presented under the new free trade agreement.

AfCFTA is a high-ambition trade agreement with a comprehensive scope that includes critical areas of Africa’s economy. By eliminating barriers to trade in Africa, the agreement seeks to significantly boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy.

The instructor for the training session, Dode Seidu, took participants through the various processes of analyzing Africa’s market opportunities, researching African markets, and means of entering other African markets through AfCFTA.

Dodie noted that, for companies to trade under AfCFTA, they must be properly registered, have an exportable product, understand the market requirements of destination countries, know the tariff and non-tariff barriers to products, and be registered with Ghana National Chamber of Commerce and Industry (GNCCI) to obtain a certificate of origin.

He also shared insight on the African Continental Free Trade Area (AfCFTA) Rules of Origin manual which serves as a guide to the operationalization of Annex 2 on Rules of Origin, an essential part of the AfCFTA.

For businesses to be able to succeed, Dode advised companies to pick the right entry strategy, understand the consumer base of the country they want to export to, use informal markets and capacity building by setting up extensive training programs to develop the skills of locals and integrate them into their business, and manage risk by building partnership with locals and engaging key stakeholders.

 

As governments, the AfCFTA secretariat, and other stakeholders strive to implement and fully operationalize the African Continental Free Trade Agreement, the AmCham Ghana AfCFTA Resource Centre is committed to hosting more engagements to provide members with vital information to succeed.

The AfCFTA Resource Centre was set up at the American Chamber of Commerce, Ghana, to serve as an information hub for U.S. businesses and provide a conducive environment for networking and partnership with Ghanaian companies to take advantage of the trade agreement.

U.S. Launches SelectUSA Summit Recruitment for Ghanaian Investors

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The U.S. Embassy joined the American Chamber of Commerce (AmCham) in Ghana yesterday to launch the 2023 SelectUSA Summit recruiting program.  The event attracted Ghanaian companies and individuals from a variety of economic sectors to highlight the benefits of investing in the United States.  In its 2022 report, Kearney Global Business Policy Council ranked the United States as the number one global destination for future Foreign Direct Investment for the tenth consecutive year.

“Our economic engagement with Ghana continues to grow.  One of our top priorities is to expand bilateral investment, not only into Ghana but into the United States as well,” explained U.S. Embassy Economic Section Chief Stephanie Hutchison at the event.  Ghanaian investments can help drive more exports of key locally sourced goods from Ghana to the United States.  She further explained that “investing in the United States can help Ghanaian companies diversify the goods and services that they provide and build their brand internationally.”

Hutchison highlighted the United States’ strong culture of innovation, as well as its business environment, labor force, diversity of industries, and lucrative domestic consumer market in her remarks.  The United States remains the largest recipient of inward foreign direct investment in the world with $5 trillion in cumulative investment at the end of 2021.

The event featured speakers from the U.S. Embassy, the American Chamber of Commerce, the Department of Commerce’s SelectUSA program, as well as from Ghanaian companies Ekumfi Fruits and Anning Bonsu Enterprises.

Acting Commercial Counselor Laurie Kelleher explained U.S. Government resources available to investors, including specific ways the SelectUSA Program can assist potential investors to identify opportunities and partners, find state and local resources, and navigate company registration and other investment processes.  She highlighted the benefits of attending the SelectUSA Investment Summit, the premier annual event dedicated to promoting investment into the United States.  SelectUSA attendees can participate in more than 100 dedicated sessions featuring C-Suite Executives, Cabinet Officials, U.S. Governors, and U.S. Economic Development Organizations from 51 U.S. States and Territories in one location. The 2022 SelectUSA Summit, the largest to date, attracted 3,000 attendees, including 1,400 companies from 70 foreign countries.

Dr. Obafemi Elegbede from SelectUSA described how to select a location for a business, register a company, and open a bank account in the United States. Other local speakers highlighted their experiences in the U.S. market, including the strong affinity for Ghana and Ghanaian products in the United States and complementary industries such as food processing, logistics, energy, software and IT services, and tourism, among others.

The Commercial Section of the U.S. Embassy will lead the Ghanaian delegation to the SelectUSA Summit, which will be held on May 1-4, 2023 in Washington, DC.  For more information about attending the SelectUSA Investment Summit, the SelectUSA Program, and investing in the United States, please visit the U.S. Embassy website section for businesses and investors: https://gh.usembassy.gov/business/getting-started-usa/

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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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

AmCham Ghana Statement On Excise Duty (Amendment) Bill 2022 Before Parliament

The American Chamber of Commerce, Ghana, has always appreciated the government’s efforts to raise more revenue domestically. But as I have indicated in my new year statement, it is imperative that the government consider the impact these proposed measures will have on the cost of production, distribution, and sale of products. Some of the rate increments in the Excise Duty (Amendment) Act 2022 will hurt businesses.

For instance, the proposed 20% rate on mineral water from the previous 17.5% will lead to an increase in the cost of production, which the companies will ultimately pass on to the consumer, which could lead to a decline in sales.

Also, the proposed imposition of excise duty (20 per centum of the ex-factory price)- ‘sugar tax’ on sweetened beverages in addition to the already existing 17.5% (to be increased to 20% per the amendment) on non-alcoholic beverages will inversely impact the business of companies operating in that sector. This will lead to an astronomical increase in the cost of production, especially for companies producing both mineral water and sweetened beverages.

These increments, coupled with the country’s current economic situation, will overburden companies leading to some businesses having to make the difficult decision of laying off some workers.

We accept that the government must increase revenue and improve the health of the citizenry, but it is also in the interest of the government to protect jobs as well.

The Chamber is making this humble call before Parliament resumes sitting to allow for broader consultation with industry and other stakeholders to resolve pertinent issues before the bill is passed.

I will plead with the Parliament of Ghana and the Ministry of Finance, for a downward revision of these excise duty rates to boost investor interest, protect jobs, and ensure constant and steady revenue flows to the government.

AmCham Ghana members have significant investments and provide thousands of jobs across several sectors, and the Chamber is ready to engage authorities to find a middle ground on these issues to ensure Ghana remains a favorite destination for investors.

Statement On The Inauguration Of The Independent Tax Appeals Board

The American Chamber of Commerce, Ghana, commends the government of Ghana on inaugurating the Independent Tax Appeals Board (ITAB). We believe this is a notable milestone in creating a business-friendly environment and will go a long way to significantly improve the country’s ease of doing business.

The Independent Tax Appeals Board established by the Revenue Administration (Amendment) Act, 2020, Act 1029 shall hear and determine appeals against the ‘tax decisions’ of the Commissioner-General of the Ghana Revenue Authority (GRA) concerning objections to tax decisions and assessments.

This Alternative Dispute Resolution (ADR) measure will ensure speedy and cost-effective interventions to tax-related disputes. I will encourage members to consider the ITAB a first point of approach in dealing with tax disputes.

An appeal against the decision of the Commissioner-General must be filed with the Executive Secretary of the Appeals Board within thirty (30) days of the decision, and I would recommend that members who seek further clarification and assistance contact reputable tax advisory firms within the AmCham network, namely PwC, KPMG, and Morrison and Associates.

I will reiterate AmCham Ghana’s commitment to seeing businesses thrive, and we remain resolute in ensuring an investor-friendly environment to ensure success.

Please, Click Here to read more on the Act establishing the Independent Tax Appeals Board.

Season’s Greetings From The Executive Secretary

It is that time of the year again, and the American Chamber of Commerce is grateful for all the blessings, support, and contributions of all members and associates to what we are proud to call a successful year despite all the challenges and uncertainties.

2022 might not go down as we envisaged at the beginning when things seem to be reverting to normalcy. But when factors beyond our control truncated optimistic projections for the medium term, we remained steadfast, kept our heads down, and sailed through the turbulent waters. Now that we are here, as a Chamber, we are proud of all your achievements and believe the coming years will improve.

Despite the challenges, AmCham Ghana has been able to host several events to present investment opportunities, advocate for an improved business environment and further strengthen the economic ties between Ghana and the United States.

Notable among these events was the 2022 U.S. – Ghana Business Forum which was attended by high-level U.S. and Ghanaian government officials, executives from our parent organization, the U.S. Chamber of Commerce, top corporate executive, institutional head, and other important stakeholders, to chart a new course in building a sustainable and mutually beneficial trade relations between our two countries.

We also hosted a visiting U.S. Congressional Delegation, the U.S. Ambassador to Ghana, Virginia E. Palmer, and Executives of AmCham Ghana member companies to discuss issues of sustainability and environmental protection in the extractive industry. The Chamber also hosted trade delegations from the U.S. state of Minnesota and the city of Memphis.

AmCham Ghana collaborated with member companies and associates, such as Johnson & Johnson, Delta Air Lines, PwC Ghana, VX Technologies, Webster University Ghana Campus, U.S. Embassy in Ghana, GARIA, and the Ghana Investment Promotion Centre, to undertake several engagements aimed at bridging the funding gap to sustain optimal treatment in mental health, create breast cancer awareness, provide insight into what global CEOs make of the business year, introduce blockchain technology, celebrate black excellence, share valuable insight on investing in the United States through the SelectUSA Program, discuss the new Office of the Registrar of Companies, and embark on a diaspora roadshow to make an investment case for Ghana in the United States.

The Chamber also successfully established the AfCFTA Resource Centre to serve as an information hub for U.S. businesses and provide a conducive environment for networking and partnership with Ghanaian enterprises to take advantage of the trade agreement. The Center signed an MoU with Emory University’s Emory Development Initiative (EDI) to offer virtual and in-person certificated corporate executive training programs granted under Emory University and the EDI on the African Continental Free Trade Agreement.

To help build a profitable franchise ecosystem in Ghana, the Chamber, supported by the  U.S. Commercial Service in Ghana, established the AmCham Ghana Franchise Committee to promote successful franchises and advocate for laws and policies to improve the ease of doing business for franchisees. This success led to the Chamber hosting the first franchise training event on How to Launch a Successful International Franchise Business.

For AmCham to better understand the various issues affecting the businesses of our member companies, we conducted surveys to solicit their views to inform our advocacy in mitigating the impact of these challenges. The surveys included the State of the Economy: Impact on Businesses Survey and the African Continental Free Trade Area Survey 2022.

In collaboration with PwC Ghana, the Chamber successfully conducted the second AmCham Ghana Economic Impact Survey to determine the overall contribution of American companies in Ghana and the direct impact on socio-economic development in the country and encourage collaboration and synergies among key stakeholders from data gathered. This survey is being replicated across the West African sub-region to measure the impact of AmCham member companies in the region.

We will use findings from these surveys to guide us in engaging authorities at different levels to make a case for an improved and sustainable business climate.

We also bid farewell to three Board Members, Vish Ashiagbor, Randi Cruz, and Gbile Adewunmi, and one Ex-Officio Member, Philippe Ayivor. The Chamber is most grateful for their selfless dedication and service. As the four took leave, we welcomed two new members, Ashok Mohinani and Kimathi Kuenyehia, to our Board of Directors.

Kindly take a few minutes to read the Chamber’s Report for a full breakdown of AmCham Ghana’s activities.

The Chamber will like to use the opportunity to extend our sincere gratitude to all member companies that supported and sponsored various Chamber events and activities. We thank all participants, speakers, and stakeholders for their valuable contributions and insights. We are most grateful and look forwards to more collaborations.

As the year ends, the American Chamber of Commerce, Ghana, wishes all members and associates and their families a season of joy.

It’s the most delightful time of the year, and you are the most wonderful partner. We wish you the happiest of holidays.

 

New Year Projections

  • I expect Ghana to get a deal from the International Monetary Fund (IMF) following the conditional Staff-Level Agreement on a $3 billion, three years Extended Credit Facility. 

 

  • The government’s proposed ‘haircut’ on foreign bonds and the suspension of interest rate payments to domestic bondholders will inversely impact the economy.

 

  • Given the government’s quest for domestic revenue mobilization and the projected total revenue and grants of GH¢143,956 million, I believe the Ghana Revenue Authority will act in an aggressive and predaceous manner to support the government’s initiatives.

 

  • We have noted the seeming stability of the Ghana Cedi against other trading currencies. While we wish the trend continues, we remain cautious and will advise members to prepare for the shocks of currency fluctuations in the coming year.

 

  • We project that the coming year will be full of challenges but remain optimistic and believe that these challenges will present new opportunities.