Give Tax Incentives To Ghanaians In The Diaspora Establishing Businesses In Ghana

The remittance of various sums of money back home to family members  and friends, by  Ghanaians in the Diaspora, ensures the survival of millions of Ghanaians.

Those sums of money sent to friends and family, by Diasporans, are  also an important source of foreign exchange for our national economy - which is why the government must do more to encourage Ghanaians living abroad to invest in Ghana.

 The story of a hardworking and wealthy  Ghanaian-American couple,  who live and work in the U.S., which I  have intimate knowledge of, ought to be a case-study  for the managers of our national economy.

They have  set up a warehousing and logistics company in Ghana,  to offer off-road heavy equipment transfer trucks (some capable of carrying even the over 72-tonne Abrams tank used by the U.S. military), which are designed to literally go anywhere - be it through desert, muddy terrain or flooded areas - to deliver loads.

 Thus far, they have shipped three of those specially designed off-road  go-anywhere trucks to Ghana. Alas, the increase in levies and taxes on imported vehicles, has forced them to  halt any  further shipments of trucks to Ghana.

The question is:  why does the government of Ghana not provide tax exemptions for Ghanaians in the Diaspora,  who want to set up businesses in Ghana?

The couple in  question,  had plans to build warehouses, a workshop to service their fleet of off-road  go-anywhere trucks, and build hostels, hotels and houses on plots they own in prime areas  of Accra and Kumasi - in a land portfolio valued at over some  US$10 millions.

 It is a real pity that such high net worth Diasporans are not targeted by the Ghana Investment Promotion Authority (GIPA). They could make a huge difference to Ghana's economic outlook - creating jobs galore and contributing to our GDP significantly.

If the couple in question had tax exemption for their warehousing and logistics business,  for example, they could bring in as many as  twenty  trucks,  by the end of this year - as well as a similar number of trailers and low-loaders.

Surely, the time has come to give tax exemptions to Ghanaians in the Diaspora,  who want to set up businesses in Ghana? That Diasporan  couple in the U.S., alone,  could have provided hundreds of jobs for: drivers; mechanics; masons; carpenters; architects; advertising companies; lawyers; surveyors and sundry consultants - at a time when such opportunities for employment are few and far between. Pity.

One hopes that the powers that be will consider  giving tax exemptions on plant and equipment, imported into Ghana, for use by the businesses of Ghanaians in the Diaspora, in the next budget.

Diasporans with businesses in Ghana are long-term investors who are here for the long haul - and won't flee when  things get tough in the real economy, from time to time: unlike your average foreign investor seeking short-term gains in emerging markets.

 If properly supported, by being given tax exemptions for plant and equipment imported into Ghana for their businesses,  Ghanaians in the Diaspora - who collectively are worth their weight in gold -  could easily  become the backbone of our national economy: poviding hundreds of thousands of jobs and capital for investing in long-term projects. A word to the wise...