Private sector is backbone of economic development - Minister

Dr. Samuel Sarpong, Ashanti Regional Minister, has stated that the Regional Coordinating Council will do whatever it can to assist the private sector to operate vibrantly to enhance the economic development of the region, and the country as a whole.

According to him, the private sector constitutes the wings on which any economy flies, and that apart from providing job avenues, the sector contributes immensely towards revenue mobilisation to support the development objectives of the nation.

Speaking at this year’s Ashanti Business Excellence Award, organised by Top Brass under the auspices of Manhyia Palace, he stated that the bulk of the taxes and rates collected in the country come from the private enterprises.

He, therefore, stressed the need to engage the private sector and other organisations, which may be genuinely committed to the region’s development and progress, in a more meaningful dialogue and information sharing, as a means to adopting the most appropriate strategies for the efficient utilisation of the resources of the region.

He said the government recognises the significant contribution of small and medium size enterprises to the economic wellbeing of the nation, and would constantly seek their collaboration to ensure that their concerns are factored in the design and formulation of policies.

The Regional Minister indicated that the government takes an interest in the event and other similar ones as a step in the right direction, and believes such award schemes complement its support to the private sector as the engine of growth in the Ghanaian economy.

According to Dr. Sarpong, it is an undeniable fact that such occasions also strengthen the government’s resolve to do more to ensure that the people reap the full benefits of their labour.

He revealed that one of the world’s best kept secrets was the fact that Africa is the place to do business, and advised business owners and potential entrepreneurs in this part of the world not to allow the challenges confronting them to limit their growth, but rather always endeavour to employ strategies and skills which enable them to succeed in the face.

Oheneba Adusei Poku, Akyempimhene of Kumasi, who represented Otumfuo Osei Tutu II, the Asantehene, as Guest of Honour, also implored the government to implement the Senchi Consensus, in order to fast-track national development.

Otumfuo endorsed the government’s decision to approach the IMF for technical and financial assistance in the face of the prevailing adverse circumstances of the Ghanaian economy.

The Ashanti King also pleaded with Ghanaians to expect some level of adverse effects of the IMF prescription on their standards of living in the short term, but quickly cautioned the government to ensure that the prescription ultimately agreed with the IMF standards.

According to the Asantehene, small and medium enterprises (SMEs) are estimated to contribute 49%, which, he observed, is virtually half of Ghana’s Gross Domestic Product.

He noted that the government had identified SMEs as the catalyst for the country’s economic growth, with tremendous capacity for income and employment generation.

He said the government had accordingly devised a plan which will be implemented under the Government Shared Growth Development Agenda II to promote the activities of SMEs in the country.

He counseled the government to ensure that the agenda incorporates measures and facilities to address the funding challenge facing SMEs.

Otumfuo also observed the rapid growth of the micro-finance sector in the Ghanaian economy, especially, during the last five years, following the recent report by the Bank of Ghana that it had granted licenses to as many as 447 micro-finance institutions.

The Asantehene indicated that the development is a blessing in terms of its potential to offer financial support to micro and small enterprises.

He said it also has the unwholesome potential to cripple some of such micro and small enterprises, through the mismanagement of their savings or, worse still, through the fraudulent misapplication and patent theft of customers’ savings.

Otumfuo Osei Tutu II, therefore, urged the Bank of Ghana to institute effective and stringent supervision of the fledgling micro-finance sector, to ensure efficiency and sanity in its operations to safeguard the investments of their customers.