The Association of Ghana Industries (AGI) is in anticipation of changes to the country’s Value Added Tax (VAT) system under the next government.

This comes after the Chief Executive Officer, Seth Twum-Akwaboah indicated that the Association regularly engaged with political parties ahead of elections to outline policies aimed at boosting the industrial sector.

He said the engagements with political parties lead to agreements through Memorandums of Understanding (MoUs) which outlined specific plans or strategies designed to promote and help the industry grow.

“We’re pleased to see that several parties have incorporated our input into their manifestos, and we look forward to collaborating with whoever forms the next government,” Mr Twum-Akwaboah indicated.

Mr. Twum-Akwaboah noted that VAT reform is important for enhancing the competitiveness of local industries but there has been limitations because businesses struggle to recover all the VAT paid to government under the current system.

“We can only recover 15 percent out of the 21.9 percent VAT paid to government,” he explained. The rest, he lamented, becomes a levy on businesses – undermining the VAT system’s effectiveness. For this reason, AGI maintains that the structure needs to change.

In an interview following the Accra Regional AGI’s Annual General Meeting (AGM), Mr. Twum-Akwaboah noted that political parties had responded favorably to AGI’s proposals, with their manifestos showing commitments to tackle VAT issues.

Alongside VAT, AGI also discussed plans to support small and medium-sized enterprises (SMEs), enhance funding access for entrepreneurs, and strengthen the export potential of local industries.

“At the SME level, we’ve had extensive discussions on how to support their development and enhance the export sector,” Mr. Twum-Akwaboah said. “It’s essential for every government to prioritise export development, and AGI is committed to playing a central role in achieving this goal.”

The AGM was themed ‘Empowering Growth: Building a Strong Workforce for Tomorrow.’

Speaking on behalf of the Executive Director of the National Service Authority (NSA), Gabriel Osei Junior, Head of Business Development at NSA, emphasized the crucial role of workforce development in shaping Ghana’s economic future.

“Investing in lifelong learning and workforce development is crucial for maintaining economic growth and competitiveness,” Mr. Osei Junior said. “Collaboration between government, industry and educational institutions is essential to equipping workers with the necessary skills for a rapidly evolving economy.”

He emphasized that education and vocational training are essential for developing a skilled workforce capable of fueling economic growth.

“A strong, competitive economy depends on well-trained workers who can adapt to new technologies and shifting work patterns,” Osei emphasised. “We must sustain an approach that covers the entire workforce, is incremental in its effectiveness and dynamic enough to meet evolving skill requirements.”

Mr. Osei Junior emphasized that innovation, powered by research and development, is crucial for boosting productivity and enhancing living standards.

“The private sector plays an essential role by investing in solutions to industry challenges and employing highly skilled workers to address these issues,” he said.

He urged the public and private sectors to work together in funding research and expanding educational access, stressing that this partnership is essential to equip workers for the needs of the future economy.

“Education improves workers’ ability to leverage new technologies, live healthier lives and adjust to changing economic realities,” he noted. “Ultimately, the alignment of business, education and government will foster innovation and sustainable growth.”