Businesses urged to embrace prudent financial practices

Mr Alhassan Andani, Managing Director of Stanbic Bank, on Thursday appealed to private businesses  to embrace good financial management to protect their establishments, and improve the country ’s economic growth.

He noted that some private businesses had collapsed because those in charge of them failed to adhere to prudent financial management.

Mr Andani said these during a breakfast meeting of Chief Executive Officers of private companies, organized by the Ghana Chamber of Commerce and Industries  in Accra.

The event was to create a platform for business executives and other stakeholders to  share ideas on the operations of businesses.

He appealed to operators in the business sector to solicit expert advice on financial management, to avoid mismanagement that could affect them and the country as well.

Mr Andani appealed to owners of private businesses to enter into partnership with other investors to broaden the scope of their ventures.

He called on those in the sector to repay loans taken from banks, and  said the unavailability of credit from financial institution, getting the adequate loan package from the bank and lack of financial prudence as challenges facing the private sector in the country.

Dr Michael Agyekum Addo, Chief Executive Officer of KAMA Group of Companies, expressed concern about the difficulties involved in registering private businesses in the country.

He called on companies to adhere to rules and regulations on the registration of  businesses  at the Registrar General’s Department.

“It’s is sad to note that sometimes instead of using just 15 days to register a business in the country, one could take as long as three months because someone has refused to do his work well”, Dr Addo said.

He also expressed concern about the tax regime, which exempts foreign businesses from tax payment for five years.

“It’s sad to note that some of these companies usually abuse this offer and begin the process of changing hands usually when the five years tax exemption period is approaching”, Dr Addo said.

He noted that some private businesses were collapsing due to the payment of huge utility bills, and the unavailability of good road networks to cart their goods to the markets.

Dr Addo called on the private sector to fully partner Government to help  move Ghana from lower middle income country to a middle income one.

Source: GNA