The Member of Parliament (MP) for Ejisu, in the Ashanti Region, John Kumah, has called on Parliament to impress on the Securities and Exchange Commission (SEC) to expedite action on the framework that allows Ghanaian businesses to access crowdfunding as a means of raising capital to create jobs for the unemployed in the society.
Delivering a statement on the floor of Parliament on Tuesday, on the theme “Youth unemployment and job creation through the private sector”, Mr Kumah asserted that crowdfunding has no legal backing in Ghana.
He said this situation has handicapped the private sector in seeking financial investment for their businesses. He therefore urged Parliament to work together with the agency in charge to expedite the process on the framework for crowdfunding for the consideration of the House.
“The absence of this (crowdfunding law) means that the private sector is handicapped when it comes to looking for financial investment.
“The Securities and Exchange Commission (SEC) is now formulating a framework plan to formally introduce crowdfunding into Ghana. We must impress on them to expedite the process and bring before the house a good framework that allows the Ghanaian businessman or businesswoman to tap into this scheme,” he noted.
AFCFTA
The Ejisu MP also enumerated some benefits that come with the African Continental Free Trade Area (AFCFTA) that Ghanaian businesses must take advantage of to grow their businesses.
“What the AfCFTA does that most small business owners know very little about is, it allows them to export their products and services to other parts of the continent where they can generate more revenue which will help in expanding their businesses and subsequently contribute to creating more jobs,” he said.
Mr Kumah, who is also the immediate past Chief Executive Officer (CEO) of the National Entrepreneurship and Innovation Programme (NEIP), further asserted that the private sector can help close the unemployment deficit in Ghana, asking Parliament to support the sector with the needed legislation.
Effect of Covid-19
He further noted that the novel coronavirus pandemic has had a ravaging effect on business. That, notwithstanding, he noted that the government has put some interventions in place for these businesses to thrive.
“Post the partial lockdown and thanks to the numerous interventions by Government, especially through the Coronavirus Alleviation Programme, and with support from the private sector, most of these lost jobs have been addressed with new source of hope and new opportunities are being created to fill the losses,” he said.
Mr Kumah is also anticipating creating the Ejisu Club 100 to create 100 entrepreneurs in the Ejisu constituency in the next four years.
About The Author
