THE Private Enterprise Federation (PEF) has called on government to provide a sustainable plan for its flagship 24-hour economy programme in order to boost private investor confidence.
PEF, an apex body representing various private sector businesses and associations, has expressed concern that the programme intended to boost productivity, create jobs, and enhance competitiveness may suffer the same fate as the One-District-One-Factory (1D1F) initiative, which was introduced by the previous administration and discontinued by the current one.
The Federation, which comprises the Association of Ghana Industries, the Ghana National Chamber of Commerce and Industry, the Ghana Employers’ Association, the Federation of Associations of Ghanaian Exporters, the Ghana Association of Bankers, the Ghana Chamber of Mines, and others, has therefore urged the government to present a clear roadmap to safeguard investor confidence and protect long-term investments.
In an interview with The Ghanaian Times last Friday in Accra, the Chief Executive Officer of the Federation, Nana Osei Bonsu, said members were hesitant to commit resources to the programme without assurances that their investments would be protected in the event of a change in government. He therefore called for stronger collaboration between the private sector and government to mitigate risks associated with the programme’s implementation.
Nana Bonsu reiterated the importance of a sustainable framework, adding that the Federation welcomed the 24-hour economy initiative and was willing to support efforts to transform Ghana’s economy.
“So, the private sector is a little hesitant as to how we get the assurance that it’s going to work and remain operational. We haven’t met the government yet because we’re still consulting with our partners and peers to determine how they would want the 24-hour economy to be structured so that they can take advantage of it.
The business community is willing to support the initiative when there is assurance that our investment will be protected and resourced appropriately, without the risk of abandonment after a change in government,” he said.
He urged the government to prioritise key sectors such as roads, security, electricity, water, and access to flexible loan repayment systems to ensure a smooth take-off of the programme.
“The government needs the private sector to achieve the 24-hour economy. For that to happen, infrastructure must be available. Do we have that yet? Logistics must be available. Do we have that yet?
“Electricity rates must be reduced, and capacity must be developed. Financial resources must also be made available at low cost so that Ghanaian businesses can compete with their regional counterparts and become profitable,” he added.
Nana Bonsu said the government must also develop strategies to boost exports and reduce imports through local production to curtail capital flight and strengthen the currency.
He emphasised that the cost of doing business in Ghana remains high compared to other jurisdictions and called for a reduction in the policy rate to influence lower lending rates from banks to local businesses.
“Foreign businesses can borrow cheaper in their home countries and repatriate profits. Therefore, we appeal to the government to create an enabling environment that ensures all investors especially domestic ones can benefit from their investments,” Nana Bonsu said.
