Start-ups and entrepreneurs operating in the country will soon breathe a sigh of relief with the coming in of a three-year tax holiday.
This initiative, according to the Business Development Minister, Awal Mohammed, forms part of government’s agenda, to support entrepreneurs create jobs to help reduce the unemployment rate.
Challenges that continue to plague entrepreneurs include lack of access to credits, access to markets, the stressful bureaucratic business registration processes among others.
Speaking with Ultimate Business after meeting with entrepreneurs in Kumasi, the Minister explained that with the tax holiday, entrepreneurs “can plough back their profits to expand”.
“We think that start-ups need some space to grow. The essence of all these is to create jobs for our people and improve livelihoods. We want to encourage that when start-ups take off, for the first three years, they need not pay taxes.
“They will plough back their profits, they expand their business and they can employ people. We’ll also help them with markets because there’s no point having a business that you cannot sell,” he said.
He continued that “another policy that we want to look at is that, 10 per cent of public funded projects or businesses should go to start-ups and that already give them the market to grow. It is not yet a policy but something that we’re pursuing.”
The Business Development Minister also revealed that government will from July this year begin disbursing some $10 million to some young entrepreneurs who have undergone training to create businesses.
He further made special mention of the contribution of women and persons living with disability to the business community, thus equally supporting to grow faster.
“We’ve trained close to 10,000 young people across the country and out of them, we are going to select 700 and give them money. The President has already ceded $10 million and that money will go to support young people in various professions. In July/August we will start disbursing this money.”
“Women constitute 52 per cent of this country and are very good business people. You cannot grow an economy without women participation and so this year we’re going to support at least 1,000 women; we’ll train them and we fund them to do business.”
“When we do that, they can expand, employ and improve the lives of people. The President wants to make sure that Ghana grows inclusively to make Ghana a business environment for Africa.”
The Kumasi Entrepreneurs Meet-Up was organized by the Kumasi Hive in collaboration with the Konrad Adenaeur Stiftung, the Ministry of Business Development and the Delegation of German Industry and Commerce in Ghana.
It was held under the theme: Enhancing Ghana’s Entrepreneurs and Start-ups; Elements of a Future Strategy/Policy by the Ghanaian Government.
In attendance were start-ups who are in technology, food and agriculture, energy, health, clothing, communication, education among others.