NPP to turn economy around

The 2016 presidential candidate of the New Patriotic Party, Nana Addo Dankwa Akufo-Addo, has assured micro and small scale enterprises across the country, reeling from the effects of the mismanagement of the Ghanaian economy by the Mahama administration, that his government, God-willing from January 2017, will implement a number of measures to turn the fortunes of the economy.
This turnaround, he explained, would empower the private sector as a whole, and the small business sector in particular, to drive Ghana towards economic prosperity, the generation of jobs and a rapid rise in the living standards of the Ghanaian people.
The NPP flagbearer gave the assurance yesterday while addressing an extraordinary general meeting of the Association of Small Scale Industries in Tamale.
Nana Akufo-Addo explained that the importance of the private sector in the development of the economy is the very basis of the NPP's economic philosophy, adding: "given an enabling environment, the ingenuity and sense of enterprise of the Ghanaian will enable us to build a strong, powerful economy which will deliver a good, dignified standard of living to our people."
Businesses in Ghana, the NPP flagbearer said, are saddled with many challenges, including the high cost of capital, high cost of doing business, the depreciation of the cedi, and the high cost of electricity and unreliable power supply, which have led to the collapse of many businesses across the county.
Reducing High Interest rates
Lending rates, according to Akufo-Addo, are currently hovering around 35%, with some microfinance operators, who are largely responsible for lending to micro and small scale enterprises, charging between 50 to 70% interest on their loans. Businesses, the NPP flagbearer added, are, therefore, constrained from making the required investments that will grow their businesses and create jobs.
To this end, Nana Akufo-Addo indicated his government would bring down interest rates to affordable and competitive levels, by, amongst others, restoring and maintaining macroeconomic stability through fiscal discipline.
"In this regard, we will pass a Fiscal Responsibility Act and reduce government borrowing to make more money available for banks to lend to the private sector to reduce interest rates. Fiscal discipline will also result in a reduction of government borrowing and a crowding in of the private sector," he assured.
Additionally, the formalization of the Ghanaian economy, through the establishment of a national database, using the National Identification System as the primary identifier, with linkages to the databases of institutions such as the Police, NHIS, Passport Office, Immigration, Courts, Ghana Revenue Authority, and DVLA, Akufo-Addo said, will be done.
This, according to Nana Akufo-Addo, will facilitate the movement from cash payments to mainly electronic payments through bank accounts, and for financial inclusion purposes. He added: "the goal of financial inclusion is to make sure most of the bankable public have bank accounts. This will increase the supply of savings into the financial system and result in the reduction of interest rates."


Addressing Cedi Depreciation
For a small open economy like Ghana's, the persistent depreciation of the cedi, according to Nana Akufo-Addo, is worrying because it ends up increasing the cost of living and the cost of doing business.

The poor management of the macro economy, he said, had led to exchange rate instability, and an unprecedented depreciation of the Ghana cedi, which had lost over 200% of its value since January 2009, exchanging at GH¢3.95 to $1 in July 2016 as against GH¢1.2 to $1 in December 2008.
"These developments have had a serious, negative impact on the cost of doing business, since Ghana is, unfortunately, still essentially, an import dependent economy. The NPP will stabilize the currency exchange rate through prudent and disciplined macroeconomic management, an increase in domestic production, and an increase in exports," he assured.
Reducing cost of doing business
With Ghana currently ranked 114 on the World Bank's Ease of Doing Business index, Nana Akufo-Addo explained that the major contributory factors leading to an increase in the cost of doing business in Ghana had been the multiplicity of taxes, levies and duties, high cost of utilities, erratic supply of electricity, high cost of rent, fuel, communication, transportation and other logistics.
In order to make Ghanaian enterprises more competitive, Nana Akufo-Addo reiterated his commitment of abolishing duties on imported raw materials, machinery and equipment; reviewing all taxes and levies imposed by MDAs, including Metropolitan, Municipal and District Assemblies on businesses, particularly small scale enterprises; and introducing measures to restore macroeconomic stability and stabilize the local currency.
The NPP flagbearer also assured that his government would facilitate access to dedicated land spaces in every Region for the establishment of multi- purpose industrial parks, sector specific business enclaves, and enterprise free zones.

Addressing the operational and financial constraints faced by micro and small scale businesses engaged in the import and export trade, Nana Akufo-Addo assured that his government would, amongst others, enforce existing regulations and, where appropriate, introduce new legislation to protect the interests of small scale Ghanaian enterprises in domestic retail trade.
Additionally, his government, he noted, will introduce new government procurement regulations to support "Made in Ghana Goods", in addition to the enforcement of local content provisions in existing legislation.
Ending Dumsor
It remains an undeniable fact that the high cost of electricity and unstable supply of power constitute some of the most critical challenges confronting Ghanaian businesses, particularly small scale enterprises.
According to the World Bank's Enterprise Survey, businesses in Ghana lose about 11.5% of their annual sales due to power outages compared to 5.5% average loss of revenue within sub-Saharan Africa. Additionally, whilst it takes 33 days within sub-Saharan Africa to obtain electricity upon application, Ghanaian businesses have a waiting period of 45 days.
This, according to Nana Akufo-Addo, has significantly contributed to the poor performance and lack of competitiveness of small businesses, as they have and still continue to grapple with the problem of DUMSOR as they have over the last five years.

"The Mahama government, after claiming to have fixed the problem, is today embarrassed to admit that DUMSOR is still with us. But the evidence is clear to all of us. We have evidence-based DUMSOR! The dumsor problem is ultimately a financial problem and I would like to assure you all that an Akufo-Addo government will end DUMSOR by resolving the financial problems facing our utilities," he assured.

Akufo-Addo shows Mahama leadership
-Visits both Abudu and Andani Gates at Yendi
Unlike President John Dramani Mahama who visited only the Andani Gate during his recent visit to Yendi, Nana Addo Dankwa Akufo-Addo, Presidential Candidate of the New Patriotic Party, yesterday demonstrated leadership by visiting both the Andani and Abudu Gates during a visit to Yendi.
Nana Akufo Addo first visited the Gbewaa Palace where he interacted with the Regent, Kampankuyanaa Abdulai Andani, and his elders.
The NPP flagbearer and his team received a warm reception and the Kampankuyanaa, who was visibly happy, expressed his appreciation for the visit.

The visit by Nana Addo was the first in over a decade since the unfortunate events in Yendi in 2002 leading to the death of the Yaa Naa and some of his elders.

The Kampankuyanaa, who expressed appreciation to Nana Addo for taking time off this busy schedule to visit him, said the Ghana could reach where the people want it to be with right leadership.
He advised communicators of the various political parties to refrain from inflaming passions, with just four months to this year's elections, in order to preserve the peace of the country. He also urged the youth in particular not to allow themselves to be used by anybody to foment trouble for country before, during and after the December polls.
Nana Addo later received a similar reception at the palace of the Bolin-Lana, who urged him to remain committed to the national good as he goes about his campaign activities. He commended Nana Addo for his "impeccable integrity and commitment to good governance" that has "been praised by both your admirers and critics alike."

The Bolin-Lana added: "Nana, when the hour dawned somewhere in 2013, when the horizon wrote calamity in bold characters, when the hearts of Ghanaians throbbed with fear and apprehension, it took your love for country, selflessness and sacrifice to calm nerves and restore hope to all. The lesson in patriotism you availed Ghanaians amazed men and your Lord must have smiled with appreciation. Nana, let me assure you that your Lord of yesterday is still in control."


Fatal cost of collapsed health system: Man goes mad over death of child
Many Ghanaians are beginning to come face to face with the fatal cost of the obvious collapsed healthcare delivery system in the country, in spite of the claims of building uncountable number of hospitals by the Mahama government.
A video making rounds on social media of a young man from Jasikan, clutching his dead baby in his hands, whilst blaming nurses and doctors, for negligence and failure to get blood for his late child is not only alarming but pathetic.
The unfortunate incident, which happened at a hospital in Amasaman, confirms how dangerous it has become to accessing healthcare in Ghana under this current government.

The frustrated young man is heard shouting and cursing, "I brought the baby since yesterday, he was healthy. This child is all I have. Everyone who has pocketed my money will suffer. I am from the Volta region; I'm not a Ga. Everyone who has pocketed my money will suffer."
The young man, whilst demanding to see the head of the hospital, disclosed that he had to go to Nsawam just to purchase a drug for GHc200.
"I had to go and buy blood tonic for him at Nsawam for two million. I also had to pay two hundred thousand (GHc20) for transport alone," the visibly angry man added.
Not even words from some patients at the facility could calm down the restless young man.
The unfortunate incident is an example of similar stories happening across the country, especially the northern part, where most health centres lack basic amenities.
Last Wednesday, the Accra Psychiatric hospital announced suspension of admissions at the facility due to lack of funds to support its operations.
The Communications Director for the hospital, Emmanuel Febiri, stated that the lack of government funding was adversely affecting healthcare delivery at the facility.
"Our source of funding depends on the subvention from the government of Ghana and the government has been trying to do its part but for some time now, the money is not forthcoming," he said.
"It has been challenging to manage the patients in terms of feeding them, buying detergents and even money to pay casual workers. As it stands now, there's no money, there's no food for the patients" he added.