Dr. Mahamudu Bawumia, Vice President and Flagbearer of the New Patriotic Party (NPP), expressed his commitment to bolstering the indigenous business community through formalization and government recognition.
During a consultative meeting with members of the Council of Indigenous Business Association of Ghana (CIBA) in Accra on Monday, March 25, Dr. Bawumia emphasized the significance of formalizing indigenous Ghanaian businesses, which form the bulk of the business landscape. He highlighted that the lack of formalization poses challenges for policy formulation and the overall growth of these enterprises.
“Many indigenous businesses operate without formal recognition, and unfortunately, this hampers effective policy planning and their potential expansion within the informal sector,” Dr. Bawumia remarked.
He urged indigenous businesses to register formally to become integral parts of the Ghanaian business community. Dr. Bawumia also pledged to collaborate with CIBA leadership to facilitate the formalization and registration of their businesses with the Registrar-General.
Recognizing the pivotal role played by indigenous businesses in job creation and economic development, Dr. Bawumia underscored the importance of simplifying the business registration process to encourage more entrepreneurs to formalize their ventures.
Drawing inspiration from Estonia’s streamlined registration process, which takes approximately 30 minutes, Dr. Bawumia expressed his determination to replicate such efficiency in Ghana.
During the session, Dr. Bawumia engaged with CIBA members, addressing their inquiries and suggestions while elaborating on his proposed tax reforms slated for 2025. These reforms include a tax amnesty for businesses and individuals, implementation of a flat-rate tax for businesses, and the elimination of certain taxes, including the contentious e-levy.
Dr. Bawumia emphasized that these tax reforms aim to stimulate business growth, enhance transparency, and simplify the tax system, which currently poses challenges for many entrepreneurs.
CIBA’s membership encompasses a diverse range of associations, including the Ghana National Association of Garages, National Drinking Bar Operators Association, Ghana Bar Operators Association, National Association of Beauticians and Hairdressers, National Refrigerators and Air Condition Workshop Owners Association, Federation of Ghana Goldsmith and Jewelers Association, Ghana Traditional Caterers Association, Ghana Electronics Serving Technicians Association, Ghana Association of Barbers and Barbering Salon Owners, Ghana National Tailors and Dressmakers Association, and the National Cooperative Butchers Association.
