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)

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 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

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.

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.

Entravision 365 Digital Ghana Limited Joins AmCham Ghana

The American Chamber of Commerce, Ghana, is pleased to welcome our new #GoldMember, Entravision 365 Digital Ghana Limited to our community of progressive businesses.

Entravision 365 Digital is an African online media and ad-technology business with a rich heritage in the African advertising industry. For 21 years the business has represented the largest publishers and platforms in Africa and have helped global brands reach connected consumers and drive business impact.

With a mission to connect publishers to brands, and brands to consumers, 365 Digital helps brands reach audiences at scale through its exclusive partnership with leading platforms like TikTok, Anzu, Boomplay, Triton Digital, and many more.

Entravision 365 Digital is a business unit of Entravision, a leading global advertising, media, and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers.

Learn More

 

Contact

Accra, Ghana

Address: Liberation Road, Atlantic Towers, Airport City, Accra, Ghana.

Phone: +233 059-692-1226

Email: ghana@entravision.com /hellometaghana(@)entravision.com

AmCham Ghana And United Airlines Set For More Collaborations In 2023 And Beyond

AmCham Ghana, on Thursday, January 19, 2023, hosted executives from United Airlines at the Chamber’s secretariat in Accra.

The meeting was to interact with the Chamber’s Executive Secretary, Simon Madjie, to identify possible avenues for collaboration in advancing the mutual interest of United Airlines and the American Chamber of Commerce, Ghana.

Present at the meeting were Robin Schoug, Regional Sales Manager EMEAI at United Airlines, Luc Geerts, United’s Regional Sales Director of Northern Europe, Oluwatomi Bola-Sadipe, Country Sales Manager Nigeria and Ghana, United Airlines, Geert Lemmen, Country Manager Ghana/ Africa at Brussels Airlines, Matilda Hammond, Sales Account Manager at Brussels Airlines, and Jane Okyere-Aduachie, Membership, External Relations, and Project Manager at AmCham Ghana.

The Chamber, in the past, has collaborated with United to host events, including the launch of the SelectUSA recruitment program.

The Chamber’s Executive Secretary said it would be an honor to continue with the AmCham-United collaborations. “United is an important strategic partner for us, not only in connecting business to business but people to people and expanding the U.S. – Ghana culture.”

“All the connections that matter for human beings are made possible by the travels you offer. Your presence has contributed to advancing the strategic objectives of businesses,” Mr. Madjie added.

United re-launched its services to Ghana in May 2021 and has since provided reliable flights at competitive prices for travelers. The airline recently offered a 5-10% discount on airfares to Ghana for the holiday season.

United has eight hubs, with Chicago–O’Hare being its largest in terms of passengers carried and the number of departures. They are also a founding member of the Star Alliance, the world’s largest airline alliance with a total of 28 member airlines.