Stop fronting for foreign businesses – GUTA appeals to Ghanaians

The General Secretary of the Greater Accra Regional branch of GUTA, Nana Poku, has appealed to Ghanaians in general to refrain from fronting for foreign businesses to register and operate in the country.

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. 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” he indicated in an interaction with The New Publisher. 

Foreign dominance

Nana Poku 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”.

Stifling factors

Mr. Nana Poku, further 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.