By Bright Kofi Agamah
The General Secretary of the Industrial and Commercial Workers’ Union (ICU-Ghana), Mr. Morgan Ayawine, has urged the government to prioritize fiscal policies that support the rapid and sustainable growth of Rural and Community Banks. He expressed concern that some fiscal policies hinder the growth and sustainability of these banks.
Mr. Ayawine made this statement while speaking at the ICU-Ghana Northern Regional Conference held in Tamale on March 27, 2025.
Reduce Corporate Tax
He noted that the imposition of a 25% corporate tax on the earnings of Rural and Community Banks negatively impacts their growth, development, and sustainability. He called on the government and the Bank of Ghana to reconsider this policy.
“The imposition of a 25% corporate tax on their earnings undoubtedly affects their growth, development, and sustainability. We, therefore, call on the Bank of Ghana to review this tax and reduce it to minimize its impact on the operations of Rural and Community Banks,” he stated.
Mr. Ayawine emphasized that Rural and Community Banks have, over the years, contributed significantly to the growth of rural industries, commerce, and services, providing much-needed economic relief to communities where mainstream banks do not operate.
Locked-Up Funds of Rural and Community Banks
He also addressed the issue of Rural and Community Banks’ locked-up funds at Gold Coast Investments, stressing the need for urgent government intervention.
“The locked-up funds of Rural and Community Banks at Gold Coast Investments are a major concern, as they are negatively affecting the banks’ operations. Accordingly, we appeal to the government to facilitate the release of these funds to enable Rural and Community Banks to continue their business and remain relevant in the banking sector.”
Bailout for PBC PLC
Mr. Ayawine further called on the government to take urgent steps to bail out the Produce Buying Company (PBC PLC), which he said has been struggling for years due to a lack of funds to sustain its operations.
“PBC PLC is one of the state-owned enterprises that is financially distressed and urgently needs resources to restore its viability and profitability. In the past, it was a vibrant and profitable company that brought relief to farmers and workers, whose current situation has been uncertain for a long time.”
He lamented that allowing such an important state enterprise, built with the nation’s scarce resources, to collapse would be a failure in the country’s ability to sustain national assets.
“For this once-thriving business to collapse and fade into oblivion would be a tragic commentary on the nation’s ability to create and maintain sustainable national assets. In this light, we use this platform to appeal to the government to urgently bail out PBC PLC to enable it to resume full operations.”
Ensuring Business Profitability
Mr. Ayawine stressed that ensuring the profitability of businesses requires a strong partnership between unions and management.
He also encouraged conference delegates to actively participate in all discussions and decision-making processes to ensure that outcomes align with the aims and objectives of the national union as they prepare for the 12th Quadrennial Delegates’ Conference in August this year.
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