The practice, he said, allowed the foreign businesses to dominate important sectors of the economy, such as telecommunications, banking and finance, oil and gas and insurance, at the expense of indigenous ones.

Besides, he said, that act also caused foreign-owned firms to take undue advantage of incentives meant for Ghanaian-owned businesses, thereby allowing them to gain an upper hand in the business environment.

“When foreign businesses come to Ghana, they know there are some incentives we give to Ghanaian-owned businesses from the government and the Ghana Investment Promotion Council, such as tax breaks and other services,” he added.

Partnership

Addressing the 59th Annual General Meeting (AGM)?of the GEA, Dr Awal said “Ghanaians must stop using their faces to bring in foreign businesses to register and operate, and after two years, hand over the businesses to the foreigners”.

“You must rather have a partnership with a foreigner, so that you can get capital injection, expertise, discipline and know-how and competence to build solid Ghanaian businesses that can last to create employment for the people,” he said.

Foreign dominance

Dr Awal observed that though the country had benefitted from a lot of foreign aid, it had not helped much in rapid growth of its economy.

He said out of the best 100 companies in Ghana, indigenous Ghanaian ownership was less than 20 per cent, a situation he described as bad for the economy.

He said while the government desired to encourage foreign direct investment (FDI) and private injection of capital, “that should not take away indigenous businesses”.

Revenue generation

On revenue generation, he said, only 12 per cent of Ghanaians paid taxes, a challenge that undermined efforts to build solid infrastructure such as hospitals, schools and other projects needed to boost economic growth.

He said although tax-to-Gross Domestic Product (GDP) ratio in West Africa was 18 per cent, in Ghana, tax-to-GDP ratio was 12 per cent, the lowest in the sub-region, asking: “How can two million people pay taxes for about 30 million people?”

He, therefore, urged employers to commit themselves to paying taxes to help build the economy to improve the welfare of the citizenry.

Students’ attachment

Dr Awal said as part of measures to prepare students for the job market, his ministry had initiated a programme that would allow 40,000 university students to be attached to businesses during holidays.

He said that would enable students from Level 200 to 400 to have hands-on experience at industries and organisations to prepare them for the job market after graduation.

Commendation

The Minister of Employment and Labour Relations, Mr Ignatius Baffour Awuah, commended the leadership of the GEA for contributing to the prevailing industrial peace in the labour sector.

With regard to the new minimum wage, he said while many employers paid their employees salaries far above the current minimum wage, there were others who were not honouring their obligations.

He warned that “if any employer is caught paying his workers below the new minimum wage, he will be sanctioned”.

Stifling factors

The President of the GEA, Mr Dan Acheampong, highlighted a number of factors that were inhibiting the growth and sustainability of businesses in Ghana.

He mentioned the high cost of capital, high utility tariffs, the influx of counterfeit products, illicit trade, as well as the depreciation of the Ghana cedi and the lack of requisite skills needed by employers.