The National Democratic Congress (NDC) John Mahama has expressed deep concern over the worsening state of businesses in Ghana, particularly in the Ashanti Region.
According to the former President, the Ashanti region has lost its title as the “heart of business” in the country.
Speaking at a campaign rally ahead of the December 7 election, Mr Mahama attributed the challenges to poor governance by the ruling New Patriotic Party (NPP) government.
He lamented the cost of doing business is now high due taxes, increased port duties, and the cedi depreciation.
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.
“However, whenever there is an economic downturn or financial instability in Ghana, it is most severely felt here in the Ashanti Region,” he said.
Mahama recounted several promises made by the NPP, particularly Vice President Dr. Mahamudu Bawumia’s pledge to move Ghana’s economy from “taxation to production.”
This promise he stated has not materialised within eight years of their governance as the plight of business owners worsen.
“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 neighbouring Togo to avoid the high port duties.
Mahama 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.
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.
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