Economic Hindarences

Hindarances

The cost of business registration in Ghana for other West African nation member state nationals is the economic force affecting other Economic Community of West African States (ECOWAS).The price of registration is pegged at $100,000 which is exorbitant for start ups.

The irony is this $100,000 is also meant for retail traders to register a business name. The government of Ghana i.e. through their trade ministry has repeatedly said all foreigners are meant to pay the above amount, Ecowas member nationals ask where the Ecowas free trade agreement amount member state is.

This has tied up innovation and capital in form of small and medium scale enterprise that could come from other West African countries. It has also led to high youth unemployment in Ghana.

As a Nigerian in Ghana I wonder if the Government has thought about the impact of what Small and Medium Scale Enterprise (SME) import i.e. the capital and human resources could do for their country.

Another economic force that is not only applicable to Ghana but other Ecowas states is the hindrances of free movement of goods across the boarders, example textile materials of certain quantity are banned from crossing into each country in a view to protect local industry which are in most cases non-existent in home countries.

Many West African countries are rich in textile materials but lack the capital and machinery to produce and function, hence, cheap and inferior textile imports are brought in from China which in the long run renders the few existing textile materials redundant.

This eventually leads to the familiar problem of high unemployment across member countries.

Back to Ghana even though there is a general view that the nation is investment friendly;foreign investors have to grapple under taxes even retails traders are not left out of the tax man hook.

Taxes range from shop/office name registration, operating license, taxes on profit etc.At times double taxes, this leads to sellers and business owners increasing the prices of goods and services arbitrarily.

Ever increasing cost on public transport system also creates uncertainty in Ghana. The present ruling party National Democratic Congress (NDC) had said petroleum prices would be reviewed by the price in the global market. The question on many lips is why is the pump price of fuel still high since globally petrol prices are low? As common in most African nations a slight increase in petrol increases the prices of basic goods and services where transport ranks priority.

There is now a situation where local traders pay more from rural farming communities to bring food produce to the cities at huge cost. The result is high cost of feeding in the cities.

The output of this quagmire is Ghana has many people with few monies to spend chasing plenty goods. Inflation reigns.

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