Finance Minister urges youth to embrace E-Levy to support job creation

The Minister of Finance, Ken Ofori-Atta, has urged the youth to support the implementation of the Electronic Levy (E-Levy), saying the revenue generated would help fund initiatives aimed at creating jobs and promoting entrepreneurship.

He said the E-Levy was a key component in raising funds to support the government’s YouStart initiative, youth empowerment programmes, road infrastructure development and debt management.

Speaking at the Youth School programme held as part of the 2022 annual New Year School and Conference at the University of Ghana, Mr Ofori-Atta said the levy would also reduce government’s reliance on borrowing from the money market, preventing competition with the private sector for available funds.

The programme, organised by the School of Continuing and Distance Education of the University of Ghana, was held on the theme “COVID-19 and socioeconomic dynamics in Ghana.”

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Mr Ofori-Atta, who spoke on the topic “Building a sustainable entrepreneurial state: Government’s policy for harnessing our population dividend,” said Ghana needed to create about nine million jobs by 2030 to address youth unemployment.

He noted that structural and financial challenges had limited the government’s ability to employ more people in the public sector, adding that only a small percentage of tertiary graduates secure formal employment annually.

The Finance Minister said the government was therefore focusing on entrepreneurship development by providing young people with financial support and opportunities to become job creators rather than job seekers.

He explained that the YouStart initiative, under the Ghana COVID-19 Alleviation and Restructuring Enterprises Support (Ghana CARES) programme, would invest GH¢100 billion over three years and create one million jobs.

Under the initiative, youth-led businesses would receive soft loans of up to GH¢50,000 to establish or expand their businesses, while groups and associations could access up to GH¢100,000 for equipment acquisition.

Deputy Finance Minister Dr John Kumah said the YouStart programme would also benefit students on university campuses through funding support for business and investment projects.

He added that the initiative would be implemented through institutions including the Ghana Enterprises Agency (GEA), National Entrepreneurship and Innovation Programme (NEIP), financial institutions and other partner organisations.

Dr Kumah encouraged young people to focus on building their own businesses, noting that the era where graduates depended mainly on corporate employment opportunities was changing.

The Chief Executive Officer of the Ghana Enterprises Agency, Mrs Kosi Yankey-Ayeh, also urged the youth to use their talents and creativity to build sustainable businesses.

She said the agency was committed to creating an enabling environment for young entrepreneurs through business advisory services and support provided through its offices across the country.

The Provost of the College of Education at the University of Ghana, Professor Martin Obeng Ababio, praised the creativity of young people during the COVID-19 pandemic, saying their ability to create businesses during difficult times showed the potential of the youth to contribute to economic growth.