By Eugene Davis
The Minority Caucus has asked government and political leaders to resolve to depoliticise entrepreneurship, in a bid to create an ecosystem where business owners can operate without fear of being tagged or targeted.According to the caucus, politicising local enterprise distorts competition, stifles innovation and discourages risk-taking—ultimately weakening Ghana’s private sector base.Speaking on behalf of the Minority Leader, Alexander Afenyo-Markin, at the Kwahu Business Forum 2026, Second Deputy Minority Whip Jerry Ahmed Shaib warned that partisan interference in business creates space for foreign firms to dominate at the expense of indigenous enterprise.“When this happens, it is foreign businesses that stand tall and dominate our markets while our indigenous enterprises struggle. That cannot be the path to sustainable growth,” he said.He argued that business success must not depend on political alignment, stressing that leadership’s role is to create a fair, predictable environment where merit and innovation thrive.A platform with economic stakesThe forum, held under the theme “Leaders Committing to Sustenance of Ghanaian Businesses,” was framed by the Minority as more than a talking shop. It is, they said, a test of whether policymakers are prepared to back local enterprise with consistent action.Sustaining Ghanaian businesses, the caucus noted, requires more than rhetoric. It demands deliberate policy choices that allow firms to scale, compete and create jobs—particularly in a fragile macroeconomic environment.The stakes are high: a stronger indigenous business sector underpins domestic value creation, reduces import dependence and stabilises the cedi through improved export capacity. Conversely, a weakened local sector deepens unemployment and limits fiscal resilience.Structural constraints holding back growthDrawing on recent engagements with business groups including GUTA, the Ghana Employers’ Association and the Association of Ghana Industries, the Minority pointed to persistent structural barriers.Access to credit remains the most immediate constraint. While benchmark rates may appear moderate, actual borrowing costs for SMEs remain significantly higher once bank margins and fees are applied. More critically, stringent collateral requirements exclude many viable businesses altogether.The result is a high failure rate among small firms, with many unable to survive beyond their early years due to a lack of patient capital. For sectors such as manufacturing and agro-processing, short-tenure loans are misaligned with long investment cycles, effectively choking expansion.Cost pressures are equally acute. Manufacturers are increasingly operating below capacity, not because of weak demand, but because energy costs and layered taxes make full production unprofitable. The cumulative burden of VAT, levies and duties—often applied simultaneously—has yet to be assessed in totality, leaving firms squeezed between rising input costs and competitive imports.Policy unpredictability compounds these challenges. Businesses cited the rollout of AI-driven customs assessment systems at the ports without adequate consultation, validation or clear appeal mechanisms. In several cases, firms reported sharply higher duty assessments without explanation, undermining confidence in the trade regime.More broadly, industry players described a recurring pattern: policies are designed and announced with limited prior engagement, with consultation often treated as an afterthought.“This is not a procedural lapse—it is a policy failure with real economic costs,” the caucus noted, pointing to lost investments, reduced competitiveness and forgone job creation.Financial sector’s role in economic transformationThe Minority also placed responsibility on the financial sector to play a more developmental role.Bridging the gap between capital and enterprise, it argued, is central to transforming Ghana’s economic structure. Without tailored financing solutions—longer tenures, flexible collateral frameworks and SME-focused products—entrepreneurial potential will remain underutilised.A more responsive financial system would not only support business expansion but also catalyse industrialisation, strengthen supply chains and expand the tax base.Policy commitments from the MinorityPositioning itself as an active stakeholder in economic governance, the Minority outlined a set of commitments aimed at improving the business climate:pushing for mandatory pre-legislative consultation on major economic policiesdemanding a full assessment of the cumulative tax burden on businessesseeking parliamentary scrutiny of AI-based customs systems and the establishment of clear appeals processesadvocating an independent review of utility tariffs with a predictable pricing roadmapsupporting targeted investment in technical and vocational education aligned with industry needsinstituting structured, quarterly engagements with business associationspromoting reforms to SME financing, including longer-tenure loans and revised collateral requirementsThese measures, the caucus argued, are necessary to restore confidence, improve policy coherence and unlock private sector-led growth.A call for alignmentIn closing, the Minority urged a reset in how government, finance and industry interact.For entrepreneurs, the message was to continue investing and innovating despite constraints. For financial institutions, it was a call to align products with the realities of local enterprise.Ultimately, the caucus argued, Ghana’s economic trajectory will depend on whether its policy environment enables indigenous businesses to scale—or continues to hold them back.“A thriving private sector is not optional,” Shaib said. “It is the foundation of sustainable growth, job creation and long-term economic stability.”
