MP for Ejisu urges legislation on crowd funding in Ghana
The Member of Parliament (MP) for Ejisu, John Kumah, has called on Parliament to impress upon the Securities and Exchange Commission (SEC) to expedite action on the framework that allows Ghanaian businesses to access crowd funding, as a means of raising capital to create jobs for the unemployed.
He said this in a statement on the floor of Parliament on Tuesday February 2, 2021. The statement was on the theme: “Youth unemployment and job creation through the private sector.”
John. Kumah asserted that crowd funding had no legal backing in Ghana, a situation that has handicapped the private sector in seeking financial investment for businesses. He urged Parliament to work together with the agency in charge to expedite the process on the framework for the consideration of the House.
“There is no law in Ghana backing crowd funding. The absence of this 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 crowd funding 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 stated.
The MP also enumerated some benefits that come with the African Continental Free Trade Area (AFCFTA) that Ghanaians 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 added.
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, and Parliament can support the sector with legislation.
The new MP for Ejisu also noted some of the interventions of the NEIP.
“Mr. Speaker, NEIP, through private sector collaborations, created 100,000 jobs, as same can be verified,” he emphasised.
He further stated that the ravaging effect of Covid-19 on businesses and government’s intervention, noting that “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 sources of hope and new opportunities being created to fill the losses.”
He says he was anticipating creating the Ejisu Club 100 to create 100 entrepreneurs in the Ejisu Constituency in the next four years.