VP Bawumia Proposes Formalization of Indigenous Businesses in Ghana

The Vice President and flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, unveiled his plans to formalize indigenous businesses in Ghana during a consultative meeting with the Council of Indigenous Business Association of Ghana (CIBA) on March 25, 2024. Dr. Bawumia emphasized that many indigenous Ghanaian businesses, which make up the majority of the business community, are currently operating informally, hindering policy planning and growth.

He stressed the importance of formalizing these businesses to integrate them into the Ghanaian business community properly. Dr. Bawumia expressed his commitment to working with CIBA to facilitate the formalization process and ensure their businesses are registered with the Registrar General.

Furthermore, Dr. Bawumia highlighted his intention to simplify the business registration process, drawing inspiration from Estonia's streamlined system, which takes only 30 minutes. He aims to encourage more entrepreneurs to formalize their businesses by making registration more accessible.

During the meeting, Dr. Bawumia also discussed his proposed tax reforms, scheduled for implementation in 2025. These reforms include a tax amnesty for businesses and individuals, a flat rate tax for businesses, and the cancellation of certain taxes, such as the e-levy. The Vice President emphasized that these reforms aim to support businesses, enhance transparency, and simplify the tax system, which currently poses challenges for many.

The CIBA comprises various associations representing sectors such as garages, drinking bars, beauticians, hairdressers, refrigerator and air conditioner workshops, goldsmiths, caterers, electronics technicians, barbers, tailors, dressmakers, and butchers.