Brigadier-General Paul Seidu Tanye-Kulono, the Acting Director-General of the Ghana Ports and Harbours Authority (GPHA), has made a compelling case for the removal of COVID-19 and Value Added Tax (VAT) levies on transit cargo passing through Ghana’s ports. He argues that these levies hinder Ghana’s competitiveness as a regional transit hub, driving business to neighboring ports like Lome and Abidjan. His appeal, made during a working visit by Transport Minister Joseph Bukari Nikpe, underscores the urgency of this issue for Ghana’s economic growth and its aspiration to become a preferred trade destination in West Africa. The removal of these levies, according to Brigadier Tanye-Kulono, would not only enhance Ghana’s attractiveness to international businesses but also stimulate job creation, aligning with the government’s 24-hour economy initiative.
The Acting Director-General’s argument centers on the highly competitive nature of the transit trade market. Neighboring countries with established port infrastructures are constantly vying for the same business, and any additional costs imposed by Ghana could easily sway traders towards alternative routes. He emphasizes that the goods in transit are not destined for Ghana, meaning the removal of these levies wouldn’t impact domestic revenue streams in the same way as taxes on goods meant for internal consumption. Instead, it would facilitate smoother trade flows, encouraging more businesses to utilize Ghana’s ports and thereby contributing to economic growth through increased port activity and related services.
Highlighting the GPHA’s proactive approach to improving its competitiveness, Brigadier Tanye-Kulono revealed that a joint team comprising GPHA and Ghana Revenue Authority (GRA) personnel recently visited the ports of Lome and Abidjan. These visits aimed to assess and learn from the operational practices of competing ports, seeking ways to enhance efficiency and streamline processes within Ghana’s own port system. This benchmarking exercise demonstrates the GPHA’s commitment to staying abreast of industry best practices and adapting to the dynamic landscape of international trade. By understanding the strengths and weaknesses of other ports in the region, the GPHA can better position itself to attract and retain business.
Brigadier-General Tanye-Kulono further outlined his vision for the GPHA, emphasizing digitalization of operations, building organizational resilience, and fostering a strong corporate culture based on discipline, fairness, and teamwork. He believes that these initiatives, coupled with support from government agencies, will propel the GPHA to new heights of operational efficiency and customer satisfaction. This forward-looking approach underscores the GPHA’s commitment to modernization and its recognition of the crucial role technology and organizational culture play in achieving sustainable growth and competitiveness.
In response to the Acting Director-General’s appeal, Transport Minister Joseph Bukari Nikpe expressed his commitment to collaborating with relevant stakeholders, particularly the Minister of Finance, to expedite the removal of the VAT and COVID-19 levies on transit goods. He acknowledged the importance of reviewing existing regulations, bureaucratic processes, and fees that contribute to the overall cost of doing business at Ghana’s ports. This commitment reflects the government’s recognition of the need to create a conducive environment for businesses operating within the port ecosystem, and its understanding that excessive charges can deter trade and hinder economic progress.
Minister Nikpe’s remarks also highlighted the government’s overarching objective of reviving the nation’s economy, positioning the GPHA as a key player in this economic transformation. He pledged his full support to the GPHA’s leadership, management, and staff, urging them to transform challenges into opportunities for the benefit of the country. This supportive stance from the Ministry of Transport reinforces the importance of a collaborative approach between government agencies and the private sector in driving economic growth and achieving national development goals. The Minister’s emphasis on turning challenges into opportunities reflects a proactive and optimistic outlook, encouraging the GPHA to leverage its strengths and address its weaknesses to achieve greater success.
