Tony Elumelu, a leading billionaire African investor whose United Bank for Africa (UBA) operates in 19 African countries including Ghana has commended Ghana’s President Nana Addo Dankwa Akufo-Addo for abolishing and reviewing a number of taxes that impede the growth and development of businesses in the country.
Mr Elumelu who is the Group Chairman of UBA and pan-African investment company Heirs Holdings, said the decision to abolish and review taxes in the government’s 2017 budget was the best for the private sector players.
Speaking at a seminar on Africapitalism and Entrepreneurship at the University of Ghana Business School, in Accra on Tuesday as part of his Africa tour, Mr Elumelu said: “Yesterday, I met with your great President and we discussed issues relating to the private sector growth and development”.
“He is full of good ideas. Young people of Ghana, your future is very bright with this kind of leadership in-charge of your country”, told hundreds of students and some young entrepreneurs who traveled all the way from other parts of Ghana to attend the seminar.
Mr. Elumelu, the Founder of the Tony Elumelu Foundation added: “Your leaders are working hard for the growth and development of the country. So, you must be very proud”.
The Group Chairman of UBA who has been championing for conducive business environment for entrepreneurs to operate, urged other African governments to emulate the Ghanaian President Akufo-Addo’s shining examples.
Mr Elumelu said 79 Ghanaian entrepreneurs had benefitted from the his Tony Elumelu Foundation Programme (TEF Programme), and it was refreshing to know that these individuals were doing great in their various endeavours.
Established in 2015 the TEF Programme, is his foundation’s 10-year, $100 million commitment to empowering the next generation of African entrepreneurs and surely, there are more private sector leaders that are willing to invest in the continent’s future.
“I see great entrepreneurship potential in many of the 93,000 applicants that applied for this year alone, but the level of training, mentoring and networking that we offer means that we can only select 1,000 each year. I call on everyone here to support those who missed the cut. This is a clear path to sustaining African economic growth.”
He explained that the TEF Programme which is the largest African sourced philanthropic gift targeting the entrepreneurial sector was inspired by three guiding principles: the inclusive economic philosophy of ‘Africapitalism’, based on the belief that a vibrant African-led private sector is the key to unlocking Africa’s economic and social potential; commitment to drive African economic growth through the empowering of African entrepreneurship; and a mission to ‘institutionalise luck’ by creating an environment where African entrepreneurs can get critical elements of support in the early stages of their business life.
Mr Elumelu and the business community in Ghana hailed the cancellation of the taxes, most of which affect businesses in the aviation, finance and real estate industries. The abolition and review of these taxes are aimed at providing a friendly environment for businesses in the country.
Some of the abolished taxes in the 2017 budget are-– 1 percent Special Import Levy; 17.5 percent Value Added Tax/National Health Insurance Levy (VAT/NHIL) on financial services; 17.5 percent VAT/NHIL on selected imported medicines, that are not produced locally; initiate steps to remove import duties on raw materials and machinery for production within the context of the ECOWAS Common External Tariff (CET) Protocol; 17.5 percent VAT/NHIL on domestic airline tickets; 5 percent VAT/NHIL on Real Estate sales; Excise duty on petroleum; Duty on the importation of spare parts; and Taxation, the gains from realisation of securities listed on the Ghana Stock Exchange or publicly held securities approved by the Securities and Exchange Commission (SEC).
While the review taxes are- Special petroleum tax rate from 17.5 percent to 15 percent; reduce National Electrification Scheme Levy from 5 percent to 3 percent; reduce Public Lighting Levy from 5 percent to 2 percent; replace the 17.5 VAT/NHIL rate with a flat rate of 3 percent for traders; and Implement tax credits and other incentives for businesses that hire young graduates.
By Masahudu Ankiilu Kunateh, African Eye Report
