Demanding 2 years rent advance blocks Ghana's development - NPP's Osafo Maafo

Demanding 2 years rent advance blocks Ghana's development - NPP's Osafo Maafo

According to the Senior Minister-designate, Yaw Osafo Maafo, he has identified some issued with land acquisition and the renting systems in Ghana.

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Osafo Maafo suggests NPP gov't will reduce lengthy rent advances

Osafo Maafo suggests NPP gov't will reduce lengthy rent advances

Speaking at his vetting on Friday, 20 January, the NPP stalwart noted the two issues as key problems confronting the growth of businesses in the country.

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Explaining how he would help government to create a friendly business environment as promised by the New Patriotic Party in its 2016 manifesto, Mr Marfo told parliament’s Appointments Committee that he would tackle the issue of land acquisition and rent to open the economy to businesses.

He noted that the issue of some landlords demanding 2 years and above in rent advance was hindering the development of the country in the long run.

Demanding more than 1-year rent advance block development in Ghana - NPP's Osafo Maafo

Demanding more than 1-year rent advance block development in Ghana - NPP's Osafo Maafo

Osafo Maafo said, "rent system in this country is a problem. There is nowhere in the world where you pay rent advance for two years. If you go to Germany now by law you can’t take rent for more than three months. In our part of the world, people can take [rent advance] for two years."

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Osafo Maafo continued, "When there was a problem in Cote d’Ivoire, people wanted to relocate from Cote d’Ivoire to Ghana and I was involved, but they were put off by the rent advance. This is because if he was going take a premises for $5000 and he is to pay for two years in advance…you’re taking his working capital."

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Osafo Maafo believed that these are some of the issues which may not seem like they are blocks to economic growth but actually are.

"...these are some of the things which may not look too obviously harmful to the economy but it’s harmful to the economy. Many of them were not prepared to borrow additionally to rent houses in Accra and, therefore, they moved to other places. So these are areas we have to look at to make the environment business-friendly."

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