Ghana has been described as a less preferred destination for businesses; even in the West African sub-region.

General Manager of Kina Group, Nuamah Eshun-Famiyeh who made the assessment said in comparison to Nigeria, Ghana is a less preferred destination.

This, he said is contrary to how Ghana sees itself as a “fantastic” business destination.

Contrasting Ghana with Nigeria, Eshun-Famiyeh said the cost of fuel, for example, makes Nigeria a more preferable option.

He said Ghanaians pay about three times the amount for the cost of fuel in Nigeria. More so, the cost of commercial loans is far friendlier in Nigeria than it is in Ghana, he explained at the Graphic Business Stanbic Breakfast Meeting Tuesday.

The cost of rent in Ghana makes it less attractive for businesses, he pointed out. 

In addition, Mr. Eshun-Famiyeh said the atmosphere in Nigeria protects the local businesses.

“In Ghana, you can bring anything from anywhere and sell, even water is shipped several miles and brought in,” he lamented.

Taking these factors into consideration, Eshun-Famiyeh said Ghana is “not a very attractive destination even in West Africa.”

Intervention

The first step that Ghana needs to take to turn the tables, Eshun-Famiyeh believes is for the government to make interventions.

Small and Medium Enterprises, he believes need a “discounted environment” to operate. This, according to him includes tariffs and taxes that are demanded from such startups.

A start-up, he said cannot pay the same taxes and tariffs that a club 100 enterprise pays.

Building a National Equity Fund to Support SMEs

Speaking on the theme, Building a National Equity Fund to Support SMEs, Dr. Lord Mensah, a panelist at the Breakfast meeting supported a Public-Private Partnership for such a fund.

According to the lecturer at the University of Ghana Business School, a private sector-led fund will allow for a push of the business interest since the businessman would ensure the money serves its purpose.

Also, the window for the government to contribute will allow for national policy direction in the fund.