Nana Yaa Jantuah, the former General Secretary of the Convention People’s Party (CPP), expressed concerns following the NPP Manifesto launch regarding the current economic policies and their impact on Small and Medium Enterprises (SMEs) in Ghana.
Nana Yaa Jantuah shed light on the underlying challenges that continue to hinder the growth and development of SMEs in the country, particularly in the face of stiff competition from imports.
Jantuah emphasized that one of the most significant challenges facing SMEs in Ghana is the overwhelming competition from imports. She argued that the cost of doing business locally, burdened by numerous taxes and other operational expenses, makes it nearly impossible for SMEs to compete with imported goods, particularly those from countries like China and Pakistan.
Jantuah argued the need for a well-thought-out and elaborate import substitution plan that would shift the focus from importation to strengthening local industries. She emphasized that such a plan would involve boosting internal investments and creating an enabling environment for local businesses to thrive.
“…the whole tariff is about the cost of the service. The cost of service should be synonymous with the amount of money you need to generate, distribute, and transmit. So, if your cost of service is lopsided, then you have a problem… immediately you do the proper structuring, where commercial industries, big industries, and bulk supply industries are paying less then it means you have to put the burden on the residential consumer.”
Nana Yaa Jantuah the former General Secretary of the Convention People’s Party (CPP)
Moreover, Nana Jantuah expressed disappointment that current economic initiatives and the NPP manifesto lack a robust strategy for import substitution, which she sees as crucial for reducing the pressure on the Ghanaian cedi and stabilizing the forex exchange.
According to Jantuah, merely talking about encouraging local industries is insufficient. Instead, she believes that effective policies and structures must be put in place to incentivize local production and investment. She pointed out the success of past policies in promoting SMEs, particularly during the tenure of President Kufuor. Reflecting on that period, she remarked:
“You remember in 2002-2003, when President Kufuor became president. He made the system so flexible and put in policies to promote SMEs… Everybody was trying to do something.”
Nana Yaa Jantuah the former General Secretary of the Convention People’s Party (CPP)
This historical perspective underscored her belief that the right mix of policies can indeed stimulate SME growth. She cited the example of Nigeria, which implemented a successful import substitution strategy by closing its borders, focusing on internal growth, and achieving self-sufficiency in agriculture. She questioned why similar measures are not being adopted in Ghana:
“…So, what are we going to do in that manner? Nigeria did it, they closed their borders, stayed within, grew their agro-industry, and now they are food sufficient.”
Nana Yaa Jantuah the former General Secretary of the Convention People’s Party (CPP)
Jantuah also expressed concern about the current government’s approach to tariffs and its impact on different sectors of the economy. She cautioned that lowering tariffs for industrial and commercial entities could lead to unintended consequences, particularly for residential consumers.
This concern reflects the broader issue of how government policies can sometimes disproportionately affect different segments of society.
Jantuah emphasized the importance of comprehensive stakeholder engagement in policy formulation to avoid such pitfalls. She pointed out the potential dangers of making populist promises, as seen in previous instances where tariff reductions led to significant revenue shortfalls for utilities:
“Anytime you do this, like Nana Addo and Co did in 2016 that they were going to reduce tariffs. They reduced their tariffs by 20% by the time they realized there was a gaping hole in the revenue of the utilities because of that 20% reduction even [causing an effect] in America.”
Nana Yaa Jantuah the former General Secretary of the Convention People’s Party (CPP)
Jantuah’s remarks underscore the need for a more nuanced and comprehensive approach to economic policy-making in Ghana.
Promotion of SMEs and Import Substitution
However, Nana Yaa Jantuah advocates for a stronger focus on import substitution, the creation of an enabling environment for SMEs, and a balanced tariff structure that does not unfairly burden residential consumers. Her insights call for a shift from rhetoric to action, with policies that genuinely support local industries and promote sustainable economic growth.
The critical points raised by Nana Yaa Jantuah, emphasize the need for strategic policy interventions to support SMEs and create a more balanced economic environment in Ghana.
This inquiry is pivotal because it touches on the core of what makes a political figure stand out during an election campaign. Jantuah pointed out that in previous NPP manifestos, there were clear, defining policies such as Free SHS, One District, One Factory, and Planting for Food and Jobs. These were easy to identify and served as the NPP’s trademark policies in 2016 and 2020. However, Jantuah expressed uncertainty about Bawumia’s current messaging.
Nana Yaa Jantuah pointed out that the lack of a clear, standout policy leaves room for uncertainty, which could be a significant challenge in distinguishing his campaign from those of his predecessors.
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