E-Levy (Electronic transaction Tax)
The highest point of the 2022 budget of the Government of Ghana is the 1.75% E-levy on electronic transactions which are expected to kick start from 1st February 2022. Assuming electronic transactions grow by 30% in 2022 with 5% of transactions exempted, the government could raise over GH₵ 10 billion in the year 2022. There may be the need for the government to clarify some payments that will be exempted, for example, if one receives their salary or pay their taxes by electronic means.
Interest Rate Subsidies for Agribusiness
The interest rate subsidy intervention will grant 50 percent subsidy on Financial Institutions’ (FIs) interest charges for loans advanced to qualified agribusinesses to secure equipment and expand working capital. Nine financial institutions have been selected to roll out the interest rate subsidy.
Government to boost tomato production and reduce annual imports by 50 percent by 2025, It will present a good entrepreneurship opportunity for the public. According to the 2022 budget, the government will achieve this by facilitating the introduction of new and improved varieties.
Developing Pharmaceutical Industry
Ghana produces about 30 percent of its pharmaceutical product requirements, therefore, Government intervention is required to reduce imports of pharmaceutical products. The government plans to achieve this by upgrading existing pharmaceutical companies to WHO Good Manufacturing Practices (GMP) standards, as well as commencing works towards establishing the Bioequivalence Centre (at Noguchi). This is expected to support the local pharmaceutical manufacturing industry to produce and export with AfCFTA in mind.
The Garment Industry
The local Tier-2 local garment industry will also benefit from a government’s intervention program that seeks to facilitate the provision and upgrade of machinery and equipment for at least 30 Tier-2 local garment manufacturing companies. This is to enable them to expand their capacity to produce and export. The support will among others target companies with strong production capacity for the local market and potential for export.
The banking industry will, therefore, spend a total of GH¢75 million over the next three years on skills development programmes for young graduates and youthpreneurs. This is, according to the 2022 Budget, will help to bridge the skill gap of the youth to be equipped for industry
The YouStart Initiative is the government’s initiative to help the youth pursue entrepreneurial ventures to curb unemployment. According to the Minister of Finance, there is 12.9% of youth unemployment. It is expected that within 3 years, the government can create 1.3 million jobs through the initiative. Beneficiaries will gain access to capital, training, technical skills and mentoring to enable them to launch and operate their own businesses. the YouStart initiative aims to support the youth to develop commercially viable businesses. To this end, YouStart is designed to instil proper commercial orientation in the beneficiaries. Entrepreneurs will be able to apply for support through a dedicated YouStart online portal.
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Specific Initiatives for Businesses
· Funding access to Competitive Credit and Starter Packs;
· Enterprise Promotion: Mentoring and Access to Markets including Portals to facilitate “digital linkages” between youth-led enterprises and other businesses and relevant Government agencies.
· Soft loans of up to GH¢50,000 to help start-ups (in particular by young graduates and school leavers) and small businesses to expand;
· Starter packs (Soft loans tied to equipment acquisition) of up to GH¢50,000 for individuals and GH¢100,000 for associations and groups;
· A standardised loan package of between GH¢100,000 to GH¢400,000 at concessional rates for SMEs from financial institutions;
A total of 278 1D1F projects are at various stages of implementation, out of which 106 factories are operational, 148 are under construction and 24 projects are being prepared.
Six automobile companies would be in operations in Ghana. VW assembling and Kantanka auto manufacturing are already in operation. According to the 2022 budget, four more auto companies will commence production in 2022. These are Nissan, KIA, Hyundai and Renault.
The GTA collaborated with the Ghana Immigration Service to update data on international arrivals which revealed that 411,164 visitors arrived in the country by end of the third quarter of 2021. Within the same period, 235,391 domestic visitors to tourism sites were recorded. In 2022, the Authority projects an increase in international arrivals to 554,052, and domestic visitation to 370,741.
The 2022 budget has emphasized the cancellation of post-retirement contracts in the public sector. The only time this would be granted is when the skill-set is not available