The Association of Ghanaian Industries (AGI) is calling for the inclusion of large scale companies in the government’s COVID-19 stimulus package for businesses.
Government has so far disbursed over GHS1 billion to small businesses in the wake of COVID-19.
Speaking to Citi News, the Chief Executive Officer of the Association, Seth Twum Akwaboa, noted that while the Association was grateful for the support government provided small businesses, large businesses also need help.
“Already, the COVID has created a huge problem for businesses and a lot of businesses have downsized and others have collapsed. So again, we were also expecting a cut on the stimulus package for businesses. There was a comment on this. Government mentioned that the GHS1 billion stimulus package that was earmarked for the small enterprises have taken off. Some have gotten it and they were also going to add about GHS150 million or so. So we are talking about GHS1.2 billion stimulus package.”
He continued, “I think it is helpful, as far as the small enterprises are concerned, but for the bigger companies, they were not the target for these facilities, therefore, it wouldn’t have much impact on them. Because if you are employing more than 100 people or a turnover of more than GHS5 million a year, you will not even qualify.”
Akufo-Addo announces stimulus packages
President Nana Addo Dankwa Akufo-Addo, on April 5, announced a soft loan scheme of up to GH¢600 million for small and medium scale enterprises (SMEs), which would sustain the country’s affected industries and address the disruption in economic activities caused by the COVID-19 pandemic.
Prior to this, he had announced a GHS1 billion stimulus package to households and businesses, particularly SMEs, under a Coronavirus Alleviation Programme.
On Friday, March 27, 2020, in a televised address on enhanced measures to contain the COVID-19 pandemic, Akufo-Addo said the Alleviation Programme was to address the disruption in economic activities, the hardship of the people, and to rescue and revitalize the industries.
“The Minister for Finance has been directed by me to prepare, for approval by Parliament, a Coronavirus Alleviation Programme to address the disruption in economic activities, the hardship of our people, and to rescue and revitalize our industries,” the President said.
Since then, many different institutions and business groups have been urging the government to consider them in the disbursement of the GHS1 billion.
Similar calls for packages for large scale businesses
The Trades Union Congress (TUC) and the Ghana Employers Association have called on government to extend its stimulus support to cover big businesses amid the COVID-19 pandemic.
The General Secretary of TUC, Dr. Yaw Baah said bigger businesses were also deserving of support from the state given their tax contributions over the years.
