Reduce cost of rent for indigenous businesses – GUTA

The General Secretary of the Greater Accra Regional branch of GUTA, Nana Poku, is advocating a reduction in the cost of doing business and support for targeted businesses if Ghana is to improve its competitiveness.

Speaking in an interview with The New Publisher, he cited the high cost of credit, power as well as rent charges for office spaces as key issues confronting indigenous businesses.

He believes addressing these issues should enable indigenous companies boost their operations and compete with other foreign brands.

”The landlords are charging high and as well as ejecting Ghanaian businessmen from their shops all because of foreigners are warned by GUTA to desist from those actions. These charges are unbearable, one can’t understand why such high charges on business operators. Aside those high level of charges, they ain’t paying taxes too. 

”How can you charge a business person of an amount of about 600, 000 cedis goodwill for five years? That is understandable. And because such good will offers are under the carpet, they go free with no tax payment and in addition, take monthly rent of the  place for the five years. This is happening in Kaneshie, Kantamanto, Tudu and other places. These owners are harassing Ghanaian business people in a bad shape. 

”The cost of energy for businesses doesn’t make sense; globally if you want to be competitive in manufacturing, you should be selling energy to industry at not less than 5 cents per kilowatt hour. Nobody should pay more than three months advance” he added. 

According to him, the development has made Ghana lag behind in terms ranking of businesses in Africa.

Per the current laws governing the renting space, Rent ACT 1963, tenants are supposed to pay between one to six months advance rent, however landlords demand two years or more instead despite the high rent charge month.

Rent charges in Ghana though vary on regional basis and specific community the facility or house is located, it is generally high as many particularly the youth struggle to meet leading to surge in homelessness, street-ism and slums in the urban areas.

For instance, a Chamber and Hall Self Contain accommodation in Accra may be rented as high as Ghc800 per month for 2years advance, especially in prime areas while in Koforidua, same room is rented at most Ghc250 per month.

The situation has been blamed on the widening housing deficit in the Country which has hit 2 million giving landlords taking advantage of the high demand to increase rent advances anyhow without control.

On this, Mr Poku called for urgent policy intervention to curb the skyrocketing rent advances in the country to liaise with the appropriate agencies to deal with the troubling rent issues.

According to him, current rent advances being demanded by Landlords particularly in urban areas in the country are outrageously high particularly for many youth to pay afflicting hardship on them.

He described the situation as a “very serious social protection and Security issue because the youth are suffering” therefore wants it urgently addressed.

”GUTA Greater Accra is calling on the Housing Ministry, to come out with a clear cut point policy on renting in the country to help solve this issue in a better way that Ghanaian citizens are facing from these landlords. Government should stand against this sort of injustice. The sector should be regulated, this is what is expected of the government.” he added.