President John Dramani Mahama, speaking at the Kwahu Business Forum this year, has called for a stable and predictable currency to support private sector growth, stressing that Ghana’s focus should not be on a strong cedi but a stable one.
President Mahama explained that while a stronger currency benefits importers, it creates challenges for exporters who earn less in cedi value for their dollar revenues.
“When the currency appreciates, importers are happy, but exporters suffer because they receive fewer cedis for the same dollar,” he stated.
Mahama emphasized that the government’s priority is to maintain a cedi that does not depreciate beyond five percent annually, creating a predictable environment for businesses.
“We are not looking for a strong cedi. We are looking for a stable Cedi,” he reiterated.
At the Kwahu Business Forum, President Mahama also outlined key tax reforms aimed at easing the burden on businesses and boosting investment.
He noted that the removal of the e-levy and COVID-19 levy, along with adjustments to the value-added tax (VAT), has reduced Ghana’s effective VAT rate to 20 percent.
President Mahama further revealed that businesses with annual turnovers below GH¢700,000 are now exempt from VAT, a move expected to support small and medium-sized enterprises.
He added that the government will improve VAT collection efficiency, which could lead to further reductions in tax rates and lower costs for businesses.
“If we improve the efficiency of tax collection, the incidence of tax on individual companies will go down,” he said.
President Mahama explained that enhanced tax efficiency would make goods more affordable and enable industrialists to expand their operations.
He also urged large businesses to be transparent in their tax obligations and contribute fairly to national development.
“I encourage all big businesses not to hide. Present your cheques and show that you are paying your taxes and being good corporate citizens,” he urged.
The Kwahu Business Forum was held this year under the theme “The Future of Business: The Role of the Financial Sector.” The event was developed by President John Mahama and Chief of Staff Julius Debra, and took off on Friday, April 3, gathering successful indigenous entrepreneurs, business executives, policymakers, investors, and owners of start-ups.
