Professor Godfred Bokpin, an economist, is concerned that the benefits of the African Continental Free Trade Area will be lost to the private sector (AfCFTA).

This is a result of the unfavorable tax system in the nation.

Prof. Bokpin claimed in an interview with Myjoyonline.com that the high cost of borrowing and some unnecessary levies are severely affecting Ghanaian firms hoping to compete favorably with their peers under the continental program.

Ghanaian enterprises will find it difficult to compete under the agreement, according to Prof. Bokpin, who was speaking to Joy Business.

‘If you look at our tax basket, it is heavily indirect based. All of that contributes to high produc­tion cost of doing business.

“If you put that together with electricity restrictions on the growth drivers of the economy, Ghanaian private sector has to borrow at a rate in excess of 35 per cent…..you can’t compete,” he said.

He pointed out that all these challenges are making it diffi­cult for Ghanaian businesses to compete under AfCFTA.

“So you can see the funda­mentals and can project how that can affect the Ghanaian private sector and the ability to maximise the participation of the AfCFTA. That’s the point that we are talking about.

“As it stands now, we don’t get the clear picture and direc­tion that government wants to create the enabling environment that guarantees private sector leadership,” he added.