Govt urged to incentivise commodities trading
Government Urged to Incentivize Commodities Trading to Boost Economy
The government has been urged to introduce incentives to encourage commodities trading in the country, with the aim of boosting economic growth and creating jobs.
Commodities trading, which involves the buying and selling of raw materials such as oil, gold, and agricultural products, has the potential to generate significant revenue and create employment opportunities. However, the sector has been facing challenges, including high costs, lack of infrastructure, and regulatory hurdles.
In a recent report, the Chamber of Commerce and Industry (CCI) urged the government to introduce incentives to encourage commodities trading, including:
- Tax breaks: The CCI recommended that the government offer tax breaks to commodities traders to reduce their costs and increase their competitiveness.
- Infrastructure development: The CCI called for the government to invest in the development of infrastructure, such as ports, roads, and storage facilities, to support the growth of commodities trading.
- Regulatory reforms: The CCI urged the government to simplify and streamline regulations governing commodities trading, to reduce the burden on traders and increase efficiency.
- Training and capacity building: The CCI recommended that the government provide training and capacity building programs for commodities traders, to improve their skills and knowledge.
- Financial support: The CCI called for the government to provide financial support to commodities traders, such as loans and grants, to help them start and grow their businesses.
The CCI also highlighted the potential benefits of commodities trading, including:
- Job creation: Commodities trading has the potential to create thousands of jobs, both directly and indirectly, in industries such as agriculture, manufacturing, and logistics.
- Economic growth: Commodities trading can contribute significantly to the country's GDP, by generating revenue and stimulating economic activity.
- Diversification: Commodities trading can help to diversify the country's economy, by reducing its dependence on a single industry or sector.
- Improved food security: Commodities trading can help to improve food security, by ensuring that essential food items are available and affordable.
The government has welcomed the CCI's report and has pledged to consider its recommendations. The Minister of Trade and Industry has stated that the government is committed to creating an enabling environment for commodities trading, and is working to address the challenges facing the sector.
Overall, the government's decision to incentivize commodities trading is expected to have a positive impact on the economy, by creating jobs, stimulating economic growth, and improving food security.