The ratings agency said stronger economic growth and rising export volumes, particularly from gold, have supported a significant build-up in foreign currency reserves, helping to stabilise the country’s external position. It noted that recent fiscal reforms and tighter expenditure controls are expected to keep budget deficits more contained than in the period leading up to the country’s debt crisis in late 2022.

Despite these gains, S&P cautioned that Ghana remains vulnerable to global shocks, particularly the ongoing tensions in the Middle East, which could drive up fuel and transport costs and, in turn, push inflation higher. The agency said such developments could also increase government borrowing costs and weigh on investor confidence.

Ghana’s current account performance has strengthened considerably, supported by favourable commodity prices and robust export earnings. The country recorded a surplus of more than $9 billion in 2025, while gross foreign reserves rose to record levels. However, S&P warned that this position could weaken if global prices for key exports such as gold, cocoa and oil decline.

The report highlighted progress in Ghana’s debt restructuring programme, noting that the government has either completed or reached agreements in principle on nearly all targeted debt. This has helped ease immediate financing pressures and contributed to improved macroeconomic stability.

At the same time, the agency pointed to ongoing challenges, including high debt servicing costs, which are projected to consume a significant share of government revenue in the coming years. It also cited structural weaknesses in public financial management and the risk that fiscal discipline may not be sustained over time, particularly during election cycles.

S&P further noted that while inflation has eased significantly from recent highs, it is expected to rise moderately in 2026 due to external pressures. The Ghanaian cedi has also shown signs of stability after a period of volatility, supported by improved foreign exchange inflows.

Looking ahead, the agency said Ghana’s rating could be upgraded if the government maintains fiscal discipline, reduces debt servicing burdens and strengthens its external buffers.

However, it warned that any slowdown in reforms, renewed fiscal slippage, or setbacks in the debt restructuring process could put downward pressure on the rating.

ALSO READ:

• Small-scale mining drives Ghana’s economy but… – Sammy Gyamfi

• Global power shifts threaten Ghana’s economy – Minority

Speaking at a Tackling Tax Revenue Leakages in Ghana forum organized by his faculty, Prof. Boadi argued strongly that the risks are dire if immediate yet bold actions are not taken to tackle tax revenue leakages in Ghana.

“Ghana is not broke. Ghana is bleeding,” he declared, pointing out that “This is not a political matter. It is not NDC versus NPP. It is Ghana versus corruption.”

According to Prof. Boadi, Ghana loses about GH₵9 billion annually due to a combination of corruption, tax evasion, and systemic smuggling across various sectors of the economy.

He stressed that these are not abstract figures but stark indicators of missed opportunities and human suffering.

“These figures are not just numbers,” he said. “They represent classrooms unbuilt, machines and medicines unavailable, and dreams deferred.”

Sector-by-Sector Breakdown of Fiscal Leakages

Prof. Boadi outlined detailed estimates of losses across several critical sectors, citing credible sources:

• Tax Administration: An estimated GH₵3 billion is lost annually to illicit financial flows, largely through high-net-worth individuals and foreign companies exploiting legal loopholes (GRA estimates).

• Customs and Trade: The World Bank’s 2023 report highlights import-related corruption costing Ghana over GH₵550 million annually due to under-invoicing, especially in machinery and textiles.

• Gold Mining: Losses in 2022 alone were pegged at GH₵2 billion, with about 60% of small-scale mining operations evading taxes entirely.

• Oil and Gas: An estimated GH₵1.5 billion in unaccounted revenues linked to production-sharing agreements, as reported by OPEC.

• Cocoa Smuggling: Approximately GH₵150 million is lost annually due to cross-border smuggling activities.

• Forestry: Illegal logging is estimated to cost GH₵250 million annually in unpaid timber royalties (Forestry Commission).

• Public Procurement: The Auditor-General’s reports indicate a loss of over GH₵170 million due to procurement inefficiencies and waste.

• Fertiliser Subsidy Programme: Roughly GH₵100 million is lost yearly to fertiliser smuggling under the Ministry of Food and Agriculture.

• Port and Harbours: Corruption at Ghana’s ports results in an estimated GH₵250 million loss annually through unpaid import duties.

• Informal Sector: With an estimated 80% of the workforce operating informally, Ghana loses an additional GH₵15.6 million annually in untapped tax revenue.

Root Causes and Consequences

Prof. Boadi identified four root causes fueling the leakages: weak enforcement, outdated systems, institutionalized collusion, and lack of transparency.

He warned that if these are not addressed, Ghana risks deeper social and economic consequences, including deteriorating public services, rising youth unemployment, and a worsening debt crisis.

“The loopholes are being exploited, not just by petty criminals, but by powerful corporations and even officials benefiting from a broken system,” he said.

The Way Forward

In his closing remarks, Prof. Boadi urged all stakeholders—government, private sector, and citizens—to rise to the occasion.

He outlined four urgent interventions:

1. Digitalisation of revenue collection systems – “We cannot tackle 21st-century challenges with 20th-century tools.”

2. Strict sanctions for offenders – “Without consequences, corruption becomes profitable.”

3. Transparency in public finance – “Every Ghanaian must be able to track how every cedi is raised and spent.”

4. Formalisation of the informal sector – “Bringing more economic actors into the tax net is essential for inclusive development.”

He warned: “The data is clear. The victims are real. And the solutions demand courage—from all of us.”

ALSO READ:

• Ghana’s constitution isn’t broken, but needs a service – Former Chief Justice

• Ghana is not broke; we’re handing over $8 billion in reserves – Akufo-Addo [Video]

• 2024 polls: Only NDC can fix Ghana’s broken economy – Mahama

In an interview on Joy News’ PM Express Business Edition on March 6, he made a passionate appeal to the private sector, urging them to take an active role in addressing the economic crisis rather than waiting for government intervention.

“Now I’ll say to the private sector, this is not the time to stand on the fence. Be part of the solution to the problem, because we know, and we believe as the private sector, that we can make a big, big difference, and we must bring our expertise to help even the public sector,” he stated.

Dr. Yamson, a seasoned business leader, stressed the importance of discipline and efficiency in private enterprise, which he believes is sorely lacking in the public sector.

“Because, you see, the discipline in the private sector is far more outstanding than the discipline in the public sector. There’s a lot we can share with the public sector,” he noted.

The Chairman of MTN Ghana’s Board suggested that business leaders can play a key role in shaping policy and governance through collaboration.

Addressing concerns from foreign investors who may be hesitant about Ghana’s economic trajectory, Dr. Yamson struck an optimistic tone, asserting that the country had reached its lowest economic point and could only improve from here.

“To investors sitting outside Ghana, I will say, don’t give up, because this country cannot go any further down than it is today,” the former Unilever Ghana boss reassured.

He pointed to renewed efforts at self-reflection and course correction, highlighting recent economic dialogues aimed at preventing the policy missteps of the past.

“You have seen the spirit that is emerging, the awareness by ourselves of our own mistakes, and we pledge at the National Economic Dialogue that we are not going to repeat those mistakes again,” he said.

He also expressed confidence that political leaders would align with the private sector in a shared mission for economic recovery.

“Our politicians will come along with us, and we will be development partners, partners in growth.”

Despite the challenges, Dr. Yamson emphasized Ghana’s strategic position on the African continent and its potential for economic resurgence if stakeholders work together.

“So my encouragement to the private sector is stay, invest. Let’s build a better Ghana,” he urged.

He ended on a hopeful note, stressing the need for a collective national effort to reset Ghana’s economic trajectory.

“Because if we take Africa, we are so strategically located that if only we all work together, supported by a genuine effort to reset Ghana, we will all be better off.”

ALSO READ:

• God has blessed Mahama with wisdom to reset Ghana – Dr. Yamson

• Government employs too many people for less value; it’s costing the nation – Dr…

Speaking on JoyFM’s Top Story on Thursday, February 27, Prof. Bokpin said while the Akufo-Addo administration expanded Ghana’s GDP by $20 billion, data suggests that the overall financial health of the country has deteriorated.

“What is becoming clearer is that even though over $20 billion has been added to our economy, the previous government’s data exists to confirm that they left this country in a much poorer state,” he stated.

He pointed to Ghana’s rising debt burden, explaining that by December 2022, inflation had soared to 54.1 per cent, and the debt-to-GDP ratio in nominal terms had exceeded 104 per cent.

“If you look at the debt numbers, at the time, in 2017 when the NPP was describing the economy as so bad, they inherited inflation of 15.4%.

“If you look at debt service to revenue ratio, even public debt to GDP ratio without debt restructuring, the NPP have debt restructuring to be thankful for, for what they are leaving behind. Otherwise, it could have been serious.”

Prof. Bokpin further noted that poverty levels have worsened, with nearly 30 per cent of Ghanaians in extreme poverty as of January 2025.

“If you look at the poverty numbers, we are talking about the fact that approximately 30% of Ghanaians are in extreme poverty at the time the NPP was leaving office in January 2025.”

He stressed that despite record revenues and resources available to the previous government, expectations were not met, leading to widespread disappointment among Ghanaians.

“….So the fact of the matter is that much of the disappointment with the NPP had to do with the fact that the expectation was so high.

“In as much as the former Minister of Finance was saying that he added $20 billion to our economy, let’s also put on record that no government has had the kind of revenue and resources that they (NPP) had within the eight-year period. And with that massive resources at their disposal, we were expecting much and more from them,” he said.

ALSO READ:

• Assessing economy’s performance based on debts is intellectual dishonesty – Amin tells Mahama

• Your ‘criminally managed economy’ comment is unpresidential – Minority to Mahama

He assured citizens that the nation is on the path to stability and recovery.

Speaking at the Chinese Lantern Festival Gala, he highlighted the resilience of Ghanaians and the importance of partnerships, particularly with China, in achieving sustainable growth.

Reflecting on the symbolic significance of the Lantern Festival, President Mahama drew parallels between the festival’s message of hope and Ghana’s current economic journey.

“The world today faces many challenges—economic uncertainties, global conflicts, climate change, and emerging health concerns—yet the light of this festival reminds us that even in times of darkness, hope must never be lost,” he stated.

Acknowledging Ghana’s economic hurdles, President Mahama assured that proactive steps were being taken to ensure recovery.

“Ghana, like many other nations, is working hard to address economic and social challenges, and we’re grateful for the support of our friends and partners, including China,” he noted.

He stated that through resilience, unity, and a shared vision for progress, Ghana could navigate its economic difficulties and build a stronger future.

The President underscored the importance of collaboration, stressing that international partnerships, particularly with China, remain crucial in Ghana’s economic revitalization efforts.

“As we move forward, we must continue to embrace cooperation and mutual respect, ensuring that the benefits of our partnership are shared by all our people,” he said.

President Mahama’s remarks reinforced his administration’s commitment to fostering stability through diplomatic and economic engagements.

He expressed appreciation for the longstanding relationship between Ghana and China, highlighting the support received in key sectors such as infrastructure, trade, and technology.

His speech served as both a reassurance and a call to action, urging Ghanaians to remain hopeful and committed to national progress.

As Ghana continues its efforts to stabilize the economy, the government’s focus on strategic planning and international cooperation will be instrumental in shaping a prosperous future.

ALSO READ:

• Komenda chief urges Mahama to revive sugar factory to boost 24-hour economy

• Goaso Muslims praise President Mahama for hajj fee reduction

According to him, the structural issues and challenges that need to be addressed in the energy sector, along with what he described as the “mess” at the Electricity Company of Ghana (ECG), and the declining production in the cocoa sector, cannot be resolved overnight.

Speaking on Joy News’ AM Show on Tuesday, January 14, Dr. Acheampong stated, “I think at the minimum, you need probably about a year and a half before you begin to see those lagged effects.”

He also mentioned the importance of the government sending the right signals to both citizens and the investor community.

Dr. Acheampong opined that inflation will not reduce in the short term.

“Bringing down inflation, I don’t think it is going to get to 10% anytime soon; it’s probably a year-and-a-half down the line. All those things become extremely important,” he said.

He also added that the economy must create opportunities for Ghanaians, particularly in terms of jobs.

“Ultimately, this economy has to deliver for Ghanaians in terms of jobs,” he said.

ALSO READ:

• Free SHS not sustainable under current economy; we must review – Angel Carbonu [Audio]

• Ghana’s fiscal space cannot fund political party pledges – Theo Acheampong

He said notably the macroeconomic front for 2024 showed a strong recovery with growth averaging 5.8 per cent for the first half of 2024, which was the highest recorded in the last five years and inflation was trending downwards and the cedi gaining strength.

The Minister was speaking at the monthly briefing to provide an update on developments in the economy since the last engagement in October 2024 in line with the resolve to update the public on the economy

He said it was instructive to mention that, while the nominal size of the Ghanaian economy was 56 billion USD in 2016, by the end of 2023, the nominal size increased to US$76 billion representing an increase of US$20 billion in seven years.

He said the figure was expected to be more by the end of 2024 when the Ghana Statistical Service puts out the end-year data.

Dr Adam said in an election year, the government had maintained fiscal discipline, even with all the massive infrastructure projects dotted across the country.

The Minister said they have completed the debt restructuring programme, both domestic and external; within one-and-half years, in record time, and successfully negotiated a US$3bn 3-year IMF-supported programme and completed three reviews in a row, with the IMF Executive Board approving the 3rd Review on Monday December 2, 2024.

Dr Adam said, “We posted strong external sector balances and improved Gross International Reserves significantly.”

He said whilst they have pursued the path of stability and fiscal consolidation, the government had kept its commitment to implementing programmes that enhanced welfare and social protection, especially for the vulnerable in the society.

“We have strengthened and widened access to all our social intervention programmes, which include among others the number of households receiving cash grants under the LEAP programme increased by 64.4 per cent from 212,917 in 2016 to about 350,000 on the register in 2024,” he said.

He said they have also increased the LEAP cash transfer budget from GH¢50million in 2016 to a GH¢720 million in 2024; indexed the LEAP benefits to inflation for the first time in the history of the programme in 2023 and beneficiaries of the Ghana School Feeding Programme increased from 1,671,777 in 8,326 public basic schools in 2016 to 4,029,580 in 10,832 public basic schools in 2024.

This represents a 141 per cent increase in beneficiaries and 30.10 per cent in the number of public basic schools.

The feeding grant cost per meal per child per day under the School feeding programme was increased from GH¢0.80 in 2016 to GH¢1.50 in 2024 and NHIS expanded its coverage to include childhood cancers, prostate cancer, mental health care, annual health checks, dialysis services, and hydroxyurea for sickle cell patients.

He said the Capitation grant increased per recipient from GH¢5.00 in 2016 to GH¢15.00 in 2024 and Year-on-Year total enrolment under the Free SHS/TVET programmes increased from 813,448 in the 2016/17 academic year to 1,488,575 in 2023/2024 academic year, an increase of 83 per cent over the period.

He said the government increased the number of public Astroturfs across the country from 3 in 2016 to over 150 as of June 2024 and the government introduced the Free Dialyses Programme for all patients across all the health centres providing dialyses services.

ALSO READ:

• Domestic economy remains stable – BoG

• John Mahama accuses NPP of mismanaging the economy he handed over

However, the flagbearer of the National Democratic Congress (NDC) believes the living conditions were better compared to what is happening under the Akufo-Addo led government.

Speaking to electorates at Techiman North in the Bono East region, Mr Mahama argued that he offered a better governance than what has being experienced in the past eight years.

“I won’t say in 2016 when NDC was in power it was heaven but it was better than today. It’s been almost eights years they came into power, but now they will say things are better than my administration, how can they say that?

“When Mahama was in power, a bag of cement was GH₵26 but now it’s more than GH₵100. Under Mahama, you could buy a gallon of petrol for GH₵14 but now you can’t even get a piece of broken bottle. You could buy a dollar with GH₵4 but now you need GH₵16,” he stated.

The hundreds of youth who were listening to him needed to hear encouraging messages and that’s exactly what the NDC flagbearer gave.

In his conversation, John Mahama urged the crowd to simply compare his four years rule to the current regime’s performance.

He also expressed concerns on the unusual currency depreciation, price hikes, and increased cost of living.

Mr Mahama reiterated that, Vice President Dr Mahamudu Vawumia is indeed an economist Ghana never got and should partly be blamed for what he describes as a grounded economy.

Source: Kwame Anum

ALSO READ:

• I will reject heaven if ‘rogue’ Mahama, ‘evil’ Kufuor make it there too –…

• I feel happy Atta Mills is in heaven looking down on us – Mahama

He described these claims as “dishonest” during an interview with Citi FM on Thursday, July 4.

Dr Boako addressed the growing perception that many Ghanaians are emigrating due to dissatisfaction with the current administration.

The NPP’s Tano North Parliamentary candidate argued that such claims are not only baseless but also misleading, as they fail to accurately represent the situation in the country.

According to Dr Boako, these allegations undermine the government’s efforts and do not reflect the broader context.

He highlighted that the government remains committed to addressing the needs of its citizens and improving the nation’s socio-economic conditions.

Furthermore, Dr Boako encouraged a more positive outlook on the situation, pointing out that the increase in people traveling could be attributed to cross-border trade and other economic activities rather than dissatisfaction.

He urged citizens to consider these factors when evaluating the reasons behind emigration.

“It will be the highest level of dishonesty if anybody says that…People travel for different reasons. Some are going to school; some are going to do business. 10 years ago, how many Ghanaians used to travel to Dubai, today multiples of people go to Dubai.”

“What do they go there to do? They don’t go there to live, they go for holidays, they go to go shopping, they go to do trade and come back.

“So, you cannot say that the fact that you go to the Airport and people are moving in droves, travelling is an indication of hopelessness,” he stated.

ALSO READ:

• Exodus of health professionals hits Ashanti region

• Government to halt exodus of health workers – Health Minister

He noted that, all key indicators are trending positively and are expected to improve further.

Speaking at a UK Town Hall meeting on Saturday, June 22, Dr Amin Adam emphasized that even international institutions like the IMF and the World Bank are astonished by Ghana’s economic recovery.

“This year our economy is going to surprise the whole world. I can tell you that this economy is rebounding strongly. We are rebounding strongly, and it is surprising the world even the IMF, the World Bank.

“They are all surprised. Last year, they projected our economy will grow at 1.5%, we grew at 2.9%. This year in the first quarter of this year, they projected we will grow at 3.1% we grew at 4.7%.”

“This economy will grow, and it will grow faster than everybody thinks,” he said.

Meanwhile, Dr Amin Adam disclosed that President Nana Addo Dankwa Akufo-Addo had directed the Ministry of Finance to release GH¢1.5 billion to customers affected by the banking sector clean-up.

Dr Adam acknowledged that while the government should not be held accountable for individuals’ investment decisions, mistakes were made, and people were not adequately informed.

He noted that some individuals had suffered greatly, with some even losing their lives due to the impact of the clean-up.

ALSO READ:

• Ghana’s economy expands by 4.7 percent in 2024 quarter 1

• Ghana’s economy rebounding strongly – Finance Minister insists

During the presentation of credentials to nine newly appointed diplomats at the Jubilee House, the President highlighted significant economic strides and the resilience shown by Ghanaians in overcoming recent global adversities.

“In the face of these adversities, Ghana has shown remarkable resilience,” President Akufo-Addo declared.

“We have embarked on a comprehensive strategy to revive our economy, and I am pleased to note that our efforts are bearing fruit.”

The President cited an impressive growth rate of 4.7% in the first quarter of 2024, surpassing the IMF’s forecast of 3.1%.

This growth, driven by the industrial sector’s 6.8% expansion and a 4.1% rise in the agricultural sector, underscores the effectiveness of the government’s economic policies.

President Akufo-Addo also emphasized the significance of Ghana’s successful debt restructuring initiatives.

“We have completed three major debt restructuring operations,” he noted, highlighting the substantial relief achieved through domestic debt restructuring, external bilateral debt restructuring, and negotiations with commercial bondholders.

The domestic debt restructuring, which achieved a high participation rate of almost 95%, reduced coupon rates from 21% to 9% on average and extended maturities.

This provided the government with much-needed breathing space and set the domestic debt-to-GDP ratio on a clear downward trend, expected to reach 55% by 2028.

The President also outlined the successful negotiations with external bilateral creditors, which resulted in a cash flow relief of approximately $2.8 billion.

This relief, spanning from 2023 to 2026, allows the government to reallocate funds towards critical infrastructure and development projects that had been stalled due to financial constraints.

“Our economic recovery is strongly on course,” the President affirmed, attributing this progress to both governmental initiatives and the resilience of the Ghanaian people.

He praised the collective effort and unyielding spirit demonstrated by Ghanaians during these challenging times.

The Ghana CARES ‘Obaatampa’ Programme, launched in 2021, continues to play a pivotal role in the nation’s economic strategy.

This ambitious program focuses on supporting commercial farming, building the light manufacturing sector, developing engineering and ICT industries, fast-tracking digitalization, and creating jobs for young people.

“The Ghana CARES ‘Obaatampa’ Programme sets out our roadmap towards the strong revitalization of the Ghanaian economy,” President Akufo-Addo explained.

“Each of you must help and contribute to the success of this programme, by facilitating, amongst other things, as much foreign investment into the country as you can.”

As Ghana continues to navigate the challenges posed by global events such as the COVID-19 pandemic and the ongoing conflict in Ukraine, the President remains optimistic about the nation’s economic future.

He reiterated his previous statement made during the height of the pandemic, emphasizing the government’s focus on reviving the economy rather than prioritising economic growth over public health.

“If you will recollect, I did say, at the height of the pandemic, that we knew how to bring the economy back to life, but did not know how to bring people back to life,” President Akufo-Addo reminded the audience.

“This remark was made to justify the extraordinary expenditures that government was forced to make during the pandemic to afford relief and protection to the population.

“I believe, in all humility, that the nation is today appreciative of the validity of my statement, as our economic recovery is strongly on course.”

President Akufo-Addo’s confidence in Ghana’s economic revival is further supported by the ongoing efforts to attract foreign investment and strengthen international cooperation.

The newly appointed diplomats are expected to play a crucial role in promoting Ghana’s economic agenda on the global stage.

“Your primary responsibility is to promote the image of Ghana as a stable, peaceful, and forward-looking country,” the President told the new envoys.

“This entails engaging with your host nations to foster strong bilateral relationships, attract investments, and advocate for the interests of Ghana.”

ALSO READ:

• I’ll reset, repair Akufo-Addo’s damage to the economy – Mahama

• Ghana has turned the corner; now working towards a more resilient, transformed economy –…

This call to action was made during a crucial meeting with representatives from the Integrated Social Development Centre (ISODEC).

In his address, Dr Otokunor outlined the challenges currently facing the nation’s economy, underscoring that without significant reforms, sustainable development would remain elusive.

“The survival and growth of our nation hinge on a comprehensive restructuring of our economic frameworks. It is imperative that we adopt new strategies that are resilient and inclusive to navigate the complexities of the modern economic landscape,” he stated.

Dr. Otokunor highlighted the proactive steps taken by former President John Mahama, who established a committee known as the NDC LAB.

This committee, comprising seasoned technocrats, is tasked with conducting an in-depth analysis of the economy.

The NDC LAB’s mandate is to provide actionable insights and innovative solutions to the economic issues plaguing the country.

“The NDC LAB is a testament to our commitment to leveraging expertise and evidence-based approaches in addressing our economic challenges. By bringing together the brightest minds, we aim to develop robust economic policies that will foster long-term stability and growth,” he added.

The meeting with ISODEC also focused on collaborative efforts to address social and economic inequalities.

Both parties agreed on the importance of a multi-faceted approach, incorporating diverse perspectives and expertise to achieve common goals.

The meeting also witnessed the presence of Dr. Mary Ewusi Deputy Director of Inter-Party and Civil Society Organizations (CSO) Relations (Corporate Affairs) and other members of the Directorate.

ALSO READ:

• Apologise right now else… – Major Derrick Oduro tells Amenfi East NPP PC [Listen]
• Elderly patient allegedly dumped in bush at Gomoa Ojobi [Photos]

Emphasising the positive trajectory, Dr Adam noted a significant decrease in inflation in recent months, signalling a promising path towards economic recovery.

Dr Adam expressed optimism that inflation would continue its downward trend, projecting a considerable reduction by the end of the year.

He attributed this positive outlook to the pragmatic policies implemented by the government aimed at revitalizing the Ghanaian economy and alleviating the hardships faced by citizens.

Highlighting the effectiveness of these policies, Dr Adam cited available data indicating a speedy rebound of the economy.

He stressed the government’s unwavering dedication to sustaining this momentum, ensuring continued progress and prosperity for the nation.

“The economy is rebounding strongly, and I can tell you as manager of the economy that our recovery is really strong. We face serious challenges, but the future is looking brighter and brighter.”

“As a result of the policies we have implemented, economic growth has become more robust than ever anticipated. Projected to grow at 1.5% last year [2023], we grew at 2.9%.”

“The signs of growth we’re seeing from the data also show that this year will be strong, and so, when I say the economy is strong, I mean it. Inflation has also been on the decline, from a peak of 54% at the end of 2022, and 12 months later, it came down to 25%.”

“We are working to ensure inflation reaches 15% by the end of this year. And by the end of 2027, inflation comes with a single digit,” he said.

ALSO READ:

• ECOWAS Bank to inject $200m into Ghanaian economy

• The worst is over for Ghana’s economy – IMF Mission Chief

The facility is being offered by EBID to Ghana through strategic alliances with the Ghana Export-Import Bank (GEXIM) and GCB Bank PLC.

A statement issued by EBID and copied to the Ghana News Agency said this was contained in a Memorandum of Understanding (MOU) signed by Dr George Agyekum Donkor, President and Chairman of the Board of Directors of EBID, and Dr Mohammed Amin Adam, Minister of Finance of Ghana, at a ceremony held at the EBID headquarters in Lome, Togo.

It said the signing ceremony was attended by key stakeholders, including Mr Lawrence Agyinsam, Chief Executive Officer of GEXIM, and Samuel Aidoo, Executive Director, Wholesale, and Investment Banking at GCB Bank PLC.

It noted that the agreement epitomises EBID’s unwavering dedication to fostering economic growth and shoring up resilience across the ECOWAS Member States.

In his opening remarks, Dr Donkor commended Ghana for its steadfast support through the payment of its subscribed share of capital, and other commitments to the bank.

He emphasised that the tripartite alliance between EBID, GEXIM, and GCB Bank PLC exemplifies EBID’s strategic thrust to bolster the recovery and transformation agenda of Member States by channeling vital resources into pivotal sectors of their economies.

According to him, this collaborative involvement underscores EBID’s commitment to forging partnership synergies within the finance and investment domain, serving as a trailblazing model for future regional collaborations and investments.

In his response, Dr Amin Adam highlighted the importance of organisations like EBID in driving sustainable transformation, especially amidst prevailing global challenges.

He lauded the profound impact of EBID under the leadership of Dr Donkor and expressed unwavering optimism regarding the bank’s continued role in shaping the region’s developmental agenda.

The $200 million injection was intended to stimulate the growth of Small and Medium Enterprises (SMEs) in critical sectors of the economy, foster job creation, innovation, and sustainable development. This injection will bring EBID’s total commitments in Ghana to $600 million.

ECOWAS Bank for Investment and Development (EBID) is the development finance institution of the Economic Community of West African States (ECOWAS) comprising 15 Member States namely, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

Based in Lomé, Togolese Republic, the Bank is committed to financing developmental projects and programmes covering diverse initiatives from infrastructure and basic amenities, rural development and environment, industry, and social services sectors, through its private and public sector windows.

EBID intervenes through long, medium, and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations, and related services.

ALSO READ:

• Ghana, 4 other states get USD 250 million EBID fund

• EBID advances USD 60 million loan facility to GRIDco

However, he said this projection is based on the “government continuing to implement the IMF programme the way it has been done over the past year, then we can say that we have now seen the worst for Ghana ‘s economy.”

The IMF Mission Chief was responding to a question posed by JOYBUSINESS in Washington DC USA on concerns that there could be some blips and shocks to the economy, due to the current developments in the global economy.

While responding to concerns that the current recovery that Ghana is experiencing might be short-lived, the IMF Mission Chief for Ghana, disagreed.

He, however, maintained that fully restoring macroeconomic stability is all about the programme being implemented strictly by the government.

Ghana’s performance under the programme

The Mission Chief For Ghana, Stéphane Roudet, also revealed that “Ghana is overperforming under the IMF programme and that is good.”

“Ghana’s programme is delivering on its promises and in fact, it is over-delivering” the Mission Chief added.

“Growth is also doing better than what we have forecasted and that is also influencing our decision to review our forecast” he noted.

He said the development is going to prompt them to even review the growth forecast for Ghana for 2024, saying inflation ended last year better than what they had projected.

“We are also surprised as to how growth has performed under Ghana’s programme” the Mission Chief added.

He said this was never evident, at the beginning of Ghana’s programme.

“The required revenue is being raised, the Bank of Ghana is also doing its part to ensure that, and inflation is brought under control and that is good for the programme”, he noted.

The Mission Chief for Ghana also added that “the external position has also been doing very well; fiscal position is also adjusting in line with the programme working and delivering on its promises.”

“Everything is moving in the right direction and this is something that was not considered at the beginning of the IMF programme.”

Mr Roudet continued that, this performance has also been influenced by Ghana’s commitment and seriousness about implementing the programme.

Restoring confidence in Ghana’s economy and reactions from rating agencies

The IMF Mission Chief for Ghana said that for confidence in Ghana’s economy to be fully restored and seen through the lens of various actors such as rating agencies and development partners, it will be anchored on the full implementation of the IMF programme going forward.

“If the macroeconomic development unfolds as we planned in the IMF programme, then definitely we should expect them to respond as well as all agencies” the Mission Chief added.

“We are not only looking at the rating agencies responding, Ghanaians as well, domestic stakeholders, then everyone will realize and that will boost confidence in the economy.”

On growth and other projections captured in reports released during the IMF/World Bank spring meetings, Stéphane Roudet noted that those were based on “old assumptions.”

He therefore said the country should expect new numbers when they launch the Regional Economic Outlook.

“We believe that the economy will perform better than had been projected” Ghana Stephan Roude reiterated.

He added, “Ghana has a growth potential average of 5 per cent going forward in the medium term.”

“Gradually, Ghana will be able to get back to its growth potential going forward” the Head of Mission concluded.

ALSO READ:

• IMF projects 4.4% growth rate for Ghana in 2025

• Isaac Adongo dismisses IMF’s ‘positive’ assessment on Ghana’s economy

Speaking at a press conference following the Spring Meetings in Washington on Sunday, April 21, 2024, Dr. Adam emphasised the significant improvement in Ghana’s economic indicators.

The Karaga MP noted that the primary deficit, which stood at 4.3% of the Gross Domestic Product (GDP) at the end of 2022, had decreased substantially.

By the end of 2023, Dr. Adam highlighted that the primary deficit had reduced to a mere 0.3%, marking a remarkable four-percentage point decrease.

He expressed optimism, anticipating a surplus of 0.5% of GDP by the end of the current year, with further growth to reach 1.5% of GDP by the following year.

Dr. Adam underscored the positive trajectory of Ghana’s economy, attributing it to the government’s efforts in implementing sound economic policies and fostering an environment conducive to growth.

He also credited the resilience and hard work of Ghanaians for contributing to the country’s economic recovery.

“For example, the primary deficit by the end of 2022 was 4.3% of GDP. By the end of 2023, the primary deficit had reduced to just 0.3% which is about 4 percentage point decline in the primary deficit. We are expecting to end this year with a surplus of 0.5% of GDP and then next year to 1.5% of GDP.”

“And so Progress is good, recovery is strong, and we are heading very quickly to stabilisation which is what we need to generate growth,” he said.

ALSO READ:

• Isaac Adongo dismisses IMF’s ‘positive’ assessment on Ghana’s economy

• Ghana’s economy to slowdown in growth in 2024 – World Bank

This was captured in the IMF’s Global Economic Outlook released on the sidelines of the Annual World Bank/ IMF Spring Meetings in Washington DC USA, on April 16, 2024.

The IMF in the report also projected that Ghana will end 2024 with a growth rate of 2.8 per cent. This is similar to what the government had forecast in the 2024 budget.

However, the World Bank believes that growth will hit 2.9 per cent by the end of this year.

Even though there is no official reason assigned for this projection, persons close to the IMF have told JOYBUSINESS the forecast is based on reforms that Ghana is undertaking under the IMF programme which is going a long way to support this economic recovery.

The IMF also believes that if Ghana sticks to the programme conditions, recovery could be faster than earlier projected.

IMF and World Bank upbeat about Ghana’s Economic recovery

The 4.4 Percent Growth Rate that the IMF forecasts for Ghana is “way higher” than the 3.3 per cent that the World Bank has projected for the country in 2025, in its Africa Pulse Report released in April 2024.

For some analysts, it appears the IMF is more optimistic about the recovery of Ghana’s economy from next year, compared to the World Bank’s projection for 2025.

However, the World Bank believes Ghana’s GDP growth rate will hit more than 5 per cent in 2026, returning to the Pre- pre-pandemic era.

The IMF has been forced to revise its projection for Ghana, as the FUND had argued that the Ghanaian economy is showing signs of strong recovery after Ghana signed up for the IMF programme.

The government, on the other hand, is hoping to achieve more than a 3 per cent growth rate in 2025.

In 2023, Ghana’s economy expanded by 2.9%, according to data released by the Ghana Statistical Service.

IMF and World Bank concerns

Speaking in Washington DC USA during the launch of the Global Economic Outlook, Director of Research, Pierre-Oliver Gourinchas was worried about how the current geopolitical tension in the Middle East could present some challenges for the economic recovery of some developing countries including Ghana, if it doesn’t simmer down anytime soon.

He also noted that election-related spending may pose a threat to the recovery of Ghana and other developing countries.

The World Bank Chief Economist mentioned that the GDP growth projection will also depend on Ghana staying on the recovery path by implementing reforms that will aid its recovery.

On how to sustain the recovery, Dr Dabalen said it is important that Ghana stays on the reform path, and maintains fiscal discipline and debt transparency.

ALSO READ:

• Russia to grow faster than all advanced economies says IMF

• Isaac Adongo dismisses IMF’s ‘positive’ assessment on Ghana’s economy

It said the recovery would be driven by stronger private consumption.

Going into the 2024 elections; many have expressed concerns that the government would overspend its budget, a situation which would derail the gains that have been made under the IMF programme.

With every election year characterised by huge budget overruns, the government has been cautioned to put in efforts to stay within its projected expenditure in the 2024 budget. 

But Fitch is projecting that an increase in government expenditure in an election year would help set the economy on a recovery phase.

It said inflation would moderate further as a result of statistical base effects and greater exchange rate stability, which would support purchasing power and boost household spending.

“We expect that the government will increase expenditure ahead of the December 2024 general election.”

“That said, growing consumer imports will weigh on the contribution of net exports to overall growth, thus we do not anticipate a return to the pre-pandemic five-year average growth rate of 5.3% in 2024,” it stated.

IMF Concerns

During her three-day visit to Ghana, the IMF Managing Director, Kristalina Georgieva, said she was leaving the country with the strongest conviction that Ghana was going to stay within its programmed expenditure despite 2024 being an election year.

She said she received firm assurances from all authorities that the country would not deviate from the programme.

“I heard it from virtually everyone, I heard it from the President, the Vice-President, the Minister of Finance and the Central Bank Governor so I’m leaving Accra with a strong confidence that the programme will be implemented,” she said in response to a question from the Graphic Business at a press briefing in Accra.

She said she could confirm that the government was strongly committed to implementing the programme and go through with the agreed reforms.

At a recent economic update, the Minister of Finance, Dr Mohammed Amin Adam, also gave an assurance that he was going to hold the expenditure line despite this year being an election year.

He said he has the commitment of the President and his colleague ministers and was therefore confident that the government would stay within the 2024 budget and IMF programme.

Ghana’s economy  

Ghana’s economy has been faced with its toughest challenges in decades characterised by high inflation which peaked at a 22-year high of 54.1% in 2022, unstable currency, high interest rates, slow-down in economic growth and an unsustainable public debt which surpassed 90% of GDP in 2022.

This prompted the government to formally seek help from the IMF and after meeting all the prior actions and requirements, the Board of the IMF approved Ghana’s programme in May 2023.

Ten months after implementing the programme, macro-economic stability appears to be re-emerging again.

Latest figures by the Ghana Statistical Service (GSS) indicate that on a provisional basis, overall GDP for 2023 grew by 2.9% compared to a target of 2.3% in the 2023 Mid-Year Review Budget.

Inflation also declined by 30.9 percentage points to 23.2% in December 2023, before picking up slightly to 23.5% in January 2024 and declining again to 23.2% in February 2024.

The cedi also cumulatively depreciated against the US Dollar by 27.8% at the end of December 2023 down from the depreciation rate of 50% at the end of November 2022. For the first three months of the year, the cedi has depreciated by 6.8% as of March 20, compared to 22.1% recorded in the same period in 2023.

External side

On the external side, the current account recorded a surplus of US$0.46 billion at the end of 2023 compared to a deficit of US$1.52 billion at the end of December 2022.

The trade balance also ended in 2023 with a surplus of US$2.6 billion compared to a surplus of US$2.9 billion at the end of 2022. 

The surplus trend continued in 2024 with a trade surplus of US$392 million at the end of February 2024.

Gross International Reserves (GIR) including encumbered assets and petroleum funds stood at US$5.9 billion (2.7 months of import cover) at the end of December 2023 from US$6.3 billion (2.7 months of import cover) at the end of December 2022.

The GIR improved to US$6.2 billion at the end of February 2024 compared to US$5.9 billion in 2022.

On the monetary side, the Bank of Ghana (BoG) lowered the policy rate by 100 basis points to 29% in January 2024 after consistently increasing it. 

In response, although interest rates moderated from 35.5% (91-day TB) in December 2022 to 19.7% in April 2023, the rates increased to 29.36% as of the end of December 2023.

The first 12 auctions in 2024 have witnessed a consecutive decline in interest rates with the 91-Day Treasury Bill rate at 26% as of March 25.

On the fiscal side, the public debt trajectory is improving as the debt-to-GDP ratio reduced to 71.4% of GDP at the end of 2023 from 73.5% of GDP at the end of 2022. 

ALSO READ:

• BoG to cut policy rate again to 28% in March 2024 – Fitch Solutions

• Inflation to average 18% in 2024 – Fitch Solution

The former President has said the Akufo-Addo led government has driven the country into a ditch, adding this is not what he handed over.

Mr Mahama expressed his frustration while addressing a party faithful as part of his Building Ghana Tour in the Eastern Region.

“My brothers, looking at the state of Ghana today, this isn’t the country I handed over to Nana Akufo-Addo on 7th January 2017. The country has collapsed.

“Debt has swallowed the country. Taking your community as an example, no developmental project has been done since they came into power,” he lamented.

Mr Mahama expressed concern on the lack of developmental projects for the people of Asuogyaman and other regions under the New Patriotic Party (NPP) administration.

Also, he condemned the politicisation of premix and outboard motor distribution to fishermen.

The former President pledged that if re-elected, proper measures will be put in place to ensure effective and non-political distribution.

“When NDC was in power, proper measures were put in place for fishermen to establish its landing beach committees where Premix was given to the committee to hand over to the fishermen, however, the narrative has changed now.

“Politicians are now in charge of the premix affecting the works of fishermen. We promised to change it when voted into power,” he said.

ALSO READ:

• NDC will inherit a difficult economy in 2025 – Mahama

• Mahama accuses NPP of driving the ‘economy into a ditch’

Backed by his running mate, Dr. Mahamudu Bawumia who sang a beautiful chorus of hope, I must say that I was bought, packaged and utterly sold.

But I was not the only person swayed by Akufo-Addo’s aura of immense goodwill. I vividly recall a taxi ride on January 7, 2017, where the driver charged me almost half the usual fare, a mere 8 cedis instead of 15.

Yes, I had faith that Nana Akufo-Addo would set Ghana on a high economic pedestal. As a child, I watched him on TV at the forefront of the “Kume Preko” demonstration when he kicked against the introduction of Value Added Tax (VAT) and the high cost of living.

I recently watched an interview he granted the Associated Press at that time. He said, “The policies that the government (Rawlings NDC) are introducing, are policies that do not find favour with the general mass of our people and that the mass of our people have been systematically impoverished”.

Who would have thought that the man who kicked against VAT would today be introducing VAT on domestic electricity consumption? 

Was it not Akufo-Addo who criticised Rawlings for introducing policies that did not find favour with the masses? Yet, was he not the same man who even taxed monies in our pockets in the name of E-Levy? The public wailed but Nana Akufo-Addo did not listen. 

Vice President Dr Bawumia had explicitly stated that “We should not tax mobile money because a lot of people who are using mobile money transactions are very poor”. Well, the “old” Nana Akufo-Addo who had criticised former President Mahama for “yentie obiaa” (we will not listen to anyone) also refused to listen to even his Vice President.

Was it not Akufo-Addo who mounted the campaign platform and complained about Kenkey costing GHȼ1, and now a ball of Kenkey is GHȼ5 and over?

On 26th May, 2009, the old Akufo-Addo at the Osu Presbyterian Hall said instead of a lean government, then President Mills had managed to secure Ghanaians a “lean kenkey”.  Well, it is apparent the new Akufo-Addo has given Ghanaians an obese government and an expensive yet leaner Kenkey.

Was it not his government that said it would move Ghana away from taxation to production?

Can you imagine the old Nana Akufo-Addo watching the new Nana Akufo-Addo on BBC saying that Ghanaians are undertaxed and also adding that “people never like taxes? I don’t know a group of people especially businesses when taxes are brought to them that like it”.

Do you remember the old Akufo-Addo passionately complaining about the cedi depreciation? He said in his flamboyant Twi that “Cedi no ayƐ hata hata”. What he meant was that the cedi had lost too much value. Now, how is the cedi faring against all the major trading currencies?

As a human rights activist, I was drawn to Nana Akufo-Addo. I had so much faith that he would set everything right.

My late mum laughed at me and said I was only young, naive and gullible. Of course, I vehemently disagreed! But now I am old and wiser. My mum was indeed right.

If anybody had told me that President Akufo-Addo would be loudly quiet when military men besieged Ashaiman and tortured residents there, I would have cursed that person.

But when a soldier was murdered, the military randomly inflicted physical harm on residents, forcing them to bathe in the mud while lashing them. As well, the victims were illegally detained for hours.

Well, the police investigated and eventually arrested the murder suspects who had allegedly fled the community.

Many residents were abused for nothing. We later learned from the Deputy Defence Minister, Kofi Amankwaa Manu that the abuse was sanctioned from the very “top”.

Could there be a reason why Nana Akufo-Addo has changed? If you find that answer I would be delighted to know. Well, Lord Acton is quoted to have said that “power corrupts but absolute power corrupts absolutely”.

Is that what has happened to the man who was “born to succeed” as Daddy Lumba musically told us? Did he care about Ghana at all? I am sorry but I don’t have the answers.

What I am certain about is that if the old Akufo-Addo met the new Akufo-Addo, they would not recognize each other. In fact, they would fight.

In an opinion piece titled ‘Bank of Ghana has failed us,’ dated Tuesday, December 26, 2023, Togbe Afede XIV highlighted the challenges posed by the Domestic Debt Exchange Programme and the conditions imposed by the International Monetary Fund (IMF).

During a courtesy call by the Speaker of Parliament in December 2021, Togbe Afede XIV had already expressed concerns, stating that if Ghana were a company, it would have filed for bankruptcy.

The opinion piece emphasized that seeking a bailout from the IMF and implementing the Domestic Debt Exchange Programme led to a default on debts, causing significant losses for holders of Government bonds and casting a pessimistic outlook on the country’s financial situation.

The seven-page document underscored the economic difficulties faced by Ghana under the leadership of President Akufo-Addo, expressing disappointment in how the country has deviated from the vision of its founding fathers.

Togbe Afede XIV criticized the leadership for creating a sense of helplessness among the populace, particularly the youth, instead of instilling hope.

Pointing to recent events, including the government’s inability to meet its debt obligations, Togbe Afede XIV argued that the Bank of Ghana (BOG) had been exposed.

He noted a departure from BOG’s previous approach, with the policy rate being kept below the year-on-year inflation rate for several months.

The opinion piece also highlighted BOG’s announcement of massive losses in 2022, totaling GH¢60 billion, and a year-end negative net worth of GH¢55 billion, leading to its characterization as technically bankrupt.

ALSO READ:

• Togbe Afede XIV backs individual bondholders’ call for exclusion from Domestic Debt Exchange

• Togbe Afede writes: Our Self-inflicted monumental economic crisis

Read the full piece below:

Ghanaian economist, Kwame Pianim, has said Ghana’s development is still at the stage of a plane on a tarmac yet to take off and get to its right destination.

He was speaking on Joy News’ PM Express on Wednesday after delivering a lecture titled “Re-Imaging Ghana’s Development”.

The onetime financier of the governing New Patriotic Party (NPP), said “Development is like a plane taking off. You start on a tarmac, you need critical mass to push off. But in Ghana, all these 62 years, we’ve been on the tarmac.

“We haven’t taken off. We’ve been on the tarmac all the time. Whenever we seem to be going something blows us off and we come back on the tarmac.”

According to him, the critical mass needed for the country’s take-off to economic prosperity has not been given adequate attention as other nations have done.

He said although Ghana has gotten some of the foundations like political stability right, the failure in the areas of macroeconomic stability has been a major setback.

“To get to the take-off, you need certain pillars; first of all, political stability. Fortunately for Ghana, we’ve achieved relative political stability. We know how to talk to one another without killing one another. We have elections and not too many people die. We change governments, fantastic.

I was talking to an Ethiopian once and he said you Ghanaians you’ve done well, and I also said you Ethiopians are doing well. Then he said look, we haven’t solved the political problem and look at what is happening. If you don’t solve the political problem, sooner than later you have to be killing one another.”

“So, political stability and then macroeconomic stability. If you don’t have macroeconomic stability and your cedi is going up and down, it means young people don’t have any incentive to save to buy houses. They have to have a place in the banking system where their money is safe, and where their assets are safe. Then there is security; you know that when I go to work and come back home, my shirt that I left there will be there, so that’s also very important.

He further explained that once all these pillars are in place, a smooth take-off is assured towards a thriving destination.

He, however, mentioned that without taking advantage of the available resources which he calls the springboard in any country for take-off, a prosperous destination would be a mirage, as it is in the case of Ghana.

So when you have all those stabilities, then you can take off. But before taking off you need a springboard. In every country, your people look at the global supply chain and say what is there that we can supply uniquely using our natural resources and our human resources?.”

And I use Korea as an example. Korea had garments, textiles and wigs and that’s how they started and they took off. And we [Ghana] were with them there with cocoa, gold, but we haven’t processed much cocoa, we don’t process the gold, and still, that’s what we are doing so we still haven’t taken off.

The take-off does not only require getting the big things right but also the small things right” he added.

He said after a smooth take-off, the next stage is self-reinforcing growth where institutional stability, checks and balances among others become the focus to sustain the gains.
“Development not unlike a plane in flight; critical mass for take-off is fuelled by sacrifice” he noted.

According to Mr Pianim, “The enemy that has kept us stalled on the tarmac unable to gather critical mass for take-off is corruption immersed in a web of fiscal indiscipline and procurement fraud.

Ghana must check population growth

The one-time presidential aspirant also spoke about the need for Ghana to control its population.

According to him, at the current population annual growth rate of 2.1 per cent, Ghana risks hitting almost 70 million people by 2057 if the right steps are not taken.

“The problem is this, if you don’t modulate your population, you have more mouths to feed, education, and infrastructure for the people. And when I tried to do our population, 2057, how big will we be? If we go on the trend that we are on, a 2.1 per cent annual rate of growth, we will be almost 70 million, 69 million people. Where are we going to put all these 69 million people?

Then if we modulate it slightly, we’re about 52. But with a little bit more robust management, we will come to 45. I think 45 million we can live with in 2057.”

Ghana’s current high fertility rate and declining mortality, have kept the annual growth rate at around 2.1%.

To change the current development trajectory, Mr Pianim said Ghana needs “to lower the annual rate of population growth from 2.1% and our women cannot continue to average six children.

No nation has developed with an annual population growth rate of 2% and above” he cautioned.

Listen to Mr Pianim in the video attached above:

ALSO READ:

• We haven’t turned the corner – Kwame Pianim on economic challenges

• 2024 polls: NPP will struggle to convince Ghanaians over economic crisis – Pianim

He argues that, these groups failed to criticize the government for its profligate spending of contracted loans.

Speaking at the Techiman Timber Market as part of his two-day tour of the Bono East Region, Mr. Mahama said the NDC is prepared to turn around the fortunes of the country.

According to the former President, loans contracted by the NPP government, which he estimates at $3 billion annually, were not invested in productive ventures.

He asserted that the watchdog roles of various actors were left to the NDC alone.

“The clergy, civil society and others in authority reneged on their watchdog role. From 2018, all vigilant people noticed the economy continued to dip. The Economic crisis was imminent. Only the NDC told the President that his brother who serves as finance minister has refused to use the 3 billion dollar loan contracted every year judiciously,” he said. 

To the NDC, the ruling government has admitted its inability to put the country on the right track.

Mr. Mahama touts the abilities of his government when successful at the 2024 elections.

“The President himself in response to questions on the economy admitted it will take the next President to fix the country. He has lost hope himself. We know that the John Mahama administration is the government to fix the challenge,” he added.

‘The Building Ghana Tour’ made a stop at the Techiman Magazine where a Town Hall meeting was organised to seek the concerns of the public for the NDC manifesto for 2024.

A National Apprenticeship Program campaign policy was proffered as a solution to challenges of apprenticeship raised in the meeting.

“Skills training is one of the means of reviving the economy. Even graduates will have to learn a skill. Even if you want to travel abroad, it is easier to get a job as a skilled person. No matter your qualification, you should learn a trade.” 

At Benkrom in the Kintampo North, a donation was made to victims of the recent floods in the area.

The former President called on the government to resource the National Disaster Management Organisation (NADMO) for such a purpose.

ALSO READ:

• Mahama accuses NPP of driving the ‘economy into a ditch’

• Economy could have been saved if… – Mahama [Video]

According to him, all sectors of the economy are presently at a standstill.

“This is very bad. The bus on which we are travelling has fallen into a ditch and we all have to help get it back on the road”, he said.

The former President who is seeking a comeback believes the NDC has the track record to return the country to the path of development.

“The only political party that can develop the country is the NDC. So we know there is a need for the NDC to return and restore the bus for the journey. The country is in a difficult place, the economy is bad, the country is in debt”, he emphasised.

John Mahama was speaking at a meeting with the Wenchi Tradition Council as he began a two-day tour of the Bono Region.

Dubbed “Building Ghana Tour”, the exercise will focus on meeting the electorates while announcing his bid to regain power as President.

The concerns gathered on the tour will feed into the NDC’s manifesto for the 2024 General Election.

Paramount Chief, Osagyefo Ampem Anye Amoapong Tabrako III emphasised the lack of development in the area and called for prioritisation of agriculture development.

“We have an agricultural based economy but we have not been very successful with it. We have a Farm College with at least 400 students, we want you to upgrade the college when you come into government”, he stated.

He added that, “You know the benefit of agriculture. I hope Wenchi becomes the best when it comes to agriculture in the country”.

According to the Former President, after over thirty years of constitutional rule, the country is yet to witness the expected development.

Touching on agricultural development, Mr. Mahama revealed the NDC’s plan to build a cashew processing plant in the Bono Region for agricultural transformation.

“When we come into power agriculture and agriculture processing will be a priority. We will develop them together. If an area grows cassava, a processing plant will be developed there. Brong Ahafo leads cashew production in the country so we will give it the deserved attention”, he promised.

Meanwhile, the former President Mahama has assured of willingness to complete stalled projects in the area.

Prof Adei is, however, worried that the outcome of such an uprising could lead to worse conditions than the country is currently facing.

“The only sad part is that if the politicians continue this course and that gives us a very dangerous trend, there is either the Arab spring type of coup d’états which in our part of the world has always led to a worsened situation,” he said.

According to him, Ghanaian politicians rather than utilising societal strengths to foster development exploit weaknesses such as corruption, and hero worship, among others, to further their own parochial interest.

This he says has significantly impaired Ghanaians’ ability to choose good leaders to lead the country and has further eroded the country’s democratic dispensation.

“Our political leaders have so much exploited and cleavage in our culture the poverty of the people, their hero worship and the rest, and our values which guarded us in the past has been so downplayed,” he said on Joy FM’s Super Morning Show.

Prof. Adei was hopeful that recent agitations against bad governance and calls for more accountable leadership would set in motion a movement to usher in better leadership for the country.

“I talk to lot of young people like you and they’re at this moment they’re waiting for a clean man or woman of character and of competence and who cares for Ghanaians to rise up and let me tell you, there could be a tsunami that will sweep away this almost duopoly of corruption of leaders in Ghana.

“So I think that our society has the capacity and many societies which eventually have good leaders had gone through a bad patch of leadership like we’re experiencing and have experienced in our recent past and by which I’m not talking about a specific regime,” he said.

ALSO READ:

• There is bitterness – MP on Prof Adei’s ‘outburst’

• Mahama: Ghana’s current state worse than factors that sparked June 4 uprising

The Deputy Minister of Trade and Industry, Dr Stephen Amoah, has highlighted the challenges the government has faced in its quest to create a level playing field in terms of taxation in Ghana.

Speaking on JoyNews’ PM Express on Wednesday, the Minister emphasised that the government does not intentionally create tax imbalances to give any entity an unfair advantage in pricing goods on the market.

His comment comes after the President of the Association Ghana Industries (AGI), Seth Twum Akwaboah, painted a gloomy picture of the country’s manufacturing sector under the current regime.

According to him, “The tax system in Ghana today, is not favouring manufacturing at all.”

In response, Dr Amoah explained the complexities of regulating prices in a free-market economy, highlighting that it can be difficult to control prices effectively.

He, however, stressed that this difficulty should not be interpreted as a deliberate effort to favor a particular actor in the same industry solely because they are not fulfilling their tax obligations.

“The level field when it comes to taxes is not that the government is intentionally involved in creating that imbalance for other people to have an undue advantage in terms of pricing policies on the market.

“Mind you, in the first place we are practicing a free market economy, so sometimes, controlling prices will be very difficult. And it is not a deliberate attempt to let one actor within the same industry have an advantage because the person is not paying taxes,” he told host Evans Mensah.

He went on to express the government’s commitment to addressing tax evasion issues in the country.

He urged all relevant stakeholders to collaborate with the government to combat the unpatriotic behavior, which, according to him, has significant financial consequences for Ghana.

“I think we as a government and every other stakeholder should help the government to ensure that those who are evading taxes in Ghana will find a way to halt that anti-social behavior. Because it is really costing us a lot,” Amoah stressed.

ALSO READ:

• Akosombo Dam spillage: I can’t even eat – Businessman who lost ¢200k cries

• I see our economy as a child with sickle cell – Stephen Amoah

• Stephen Amoah apologises for ‘economy is like a child with sickle cell’ comment

He was referring to the ballooning public debt and expenditure amidst an economic downturn and its resultant economic hardship on Ghanaians.

The CEO listed the health sector, education sector, security and food sectors, and the private sector as key areas the government must focus on.

“From where I sit Ghana needs to move to survival mode now and we need to focus on how we make the ordinary Ghanaian survive. It is survival mode now. The point I’m trying to make is that we can’t afford not to do anything now and let’s focus on supporting in this survival mode the ordinary Ghanaian,” he said on Joy FM’s Super Morning Show.

Ken Thompson said it was imperative for government to ensure basic health care for all Ghanaians.

He called for investments into health infrastructure, the health insurance scheme and other health-centered programmes to ensure quality healthcare delivery.

Speaking on education, he reiterated calls for the scrapping of the boarding school system.

“We cannot afford this boarding school system, it’ll kill us, it is killing us. I mean, go to any school… it’s pathetic. We can’t afford it,” he added.

According to him, in its stead, the government can introduce a new system where parents who want their children in boarding schools can pay hostel fees to the school among others.

“And if you want your child to go to Adisadel or Achimota, we can have a system where you pay for the hostel fees… And if you go to countries with good educational systems the people that go to boarding school pay through their nose and the rest go to public schools which are community-based,” he said.

He called for more investment into security as well.

He said the rise in violent extremism outside of the country’s borders is a matter of grave concern and must be prevented from spilling into the country.

“Security is important because we’re aware of things that are happening outside our borders and we don’t want an overspill to disrupt the little peace that we have, and let’s not take that for granted,” he said.

On food, he said government must do more to ensure food security and arrest the rapid food inflation that continues to double food prices every few months.

“I mean food inflation in Ghana now is nearly 50%, I think it’s probably more. That means that nearly every 12, 13, 16 months or so prices double. There are Ghanaians that are going to bed hungry as we speak every day. This is survival. And if our politicians don’t understand it, we’ve got to make them understand,” he said.

“As for the list of expenditures to cut, the list is so long I don’t want to go there, but focus on getting us to survive, focus on getting ordinary Ghanaians to survive , focus on not lying to us, focus on showing us that you understand the issues and give the private sector room to work.

“I mean as private sector there are so many obstacles and we lack inspiration. If you want to do business in Ghana you give up. What is wrong with us?” he added.

He indicated that, the economy is in a better position than it was in the hands of the National Democratic Congress (NDC).

He told Citi News that the NPP has been able to continue with its social intervention initiatives despite the global economic debacle.

Mr. Blay expressed optimism that Ghana’s economy will experience an appreciable recovery in 2024.

“The economy, in the hands of the NPP has been far better, irrespective of the challenges that we have faced. In terms of numbers and figures, and so forth, we have not slowed down in our social interventions.”

“The decisions regarding NHIS, Free SHS, road construction, and all other initiatives we embarked on have not been stalled despite the events in Ukraine. We are adapting to the situation, and things are improving. Therefore, by 2024, the economy will show signs of improvement.”

“Just as Vice President Mahamudu Bawumia admitted, we have faced difficulties and are still facing them. However, regardless of these challenges, we are performing better and displaying resilience. People should remain hopeful. We acknowledge that times are tough, but we have not mismanaged or displayed incompetence like the NDC,” Mr. Blay added.

ALSO READ:

• NPP MP sends SoS message to Ghanaians over economy

• NPP focused on bringing the economy back to sound footing – Buaben Asamoa

The US-based physician, in an interview with Accra-based Citi TV criticised government and its communicators for continuously attributing Ghana’s economic woes to the outbreak of COVID-19 and the Russian-Ukraine war.

Dr. Arthur Kennedy said government and the NPP as a whole will soon run out of excuses and find a comfy seat to attribute the current hardship to the outbreak of the Israeli-Palestinian conflict.

“I have heard that very soon, the NPP will add the Israeli-Palestinian war to the list of excuses [it already has]. Let’s be serious; as a result of COVID-19, the government received $3 billion from external funders. In addition to that, the government imposed a COVID tax that it has yet to remove, yet we keep making COVID the excuse.”

He also touched on the NPP’s flagbearer primary, which he indicated has exposed the weaknesses and threats to the party’s democratic principles.

“The NPP had a weak hand even before the primary season started because of the government’s record. Not only that, the primary process has discredited the government and the party in terms of our openness and alignment with our democratic principles.”

“Kennedy Agyapong has done more damage to the credibility of the NPP than Alan did by leaving

ALSO READ:

• NPP MP sends SoS message to Ghanaians over economy

• NPP is good at breaking the economy not breaking the 8 – Former Minister

Speaking on Prime Morning on Wednesday, he attributed the nation’s economic challenges partly to the funds used in building the National Cathedral, the Bank of Ghana head office, and money he alleged was shared by government officials during the NPP supper delegates congress.

According to him, the country is blessed with resources but is losing everything to individuals in the government, alleging that most of such persons are hording monies for their personal gain instead of the country’s growth.

This, he said, has left over 800,000 citizens battling with poverty, per the World Bank report. However, Lawyer Tetteh suggested that those squandered funds could have been used to attend to vital and urgent developmental issues.

“This country is broke not because there’s no money; it’s because we’re engaged in wasteful expenditure. If that Bank of Ghana head office is suspended, we won’t be talking about 850,000 people being pushed into poverty. If we had managed the funds well in terms of building the national cathedral, we wouldn’t be talking about the fact that the country is broke.”

“If we had not seen money in people’s bedrooms and lockers, we wouldn’t be talking about the fact that the country is broke. If we had not seen party officials sharing as much as GHȼ20,000, if this country is broke, it’s because of wasteful expenditure, and the very moment we begin to reduce the size of government and ensure that everybody gets a share of the national cake, we won’t talk about being broke,” he continued.

Nonetheless, the NDC communicator has asserted that the party is putting measures in place to reduce the size of government if it assumes power in 2025.

He said the NDC is going to ensure the suspension of non-functional secretariats and agencies, the building of new embassies, and the Accra International Conference Centre by the Akufo-Addo-led government.

He assured that establishing a better Ghana under the NDC will not be about “create, loot, and keep.” Instead, they are going to make sure that every Ghanaian benefits from the resources of the country.

As the NPP elects its flagbearer on Saturday, November 4, 2023, Gideon Tetteh is confident that the NDC is always ready to defeat whoever wins to represent the party in 2024. He said they do not fear any of the NPP aspirants.

ALSO READ:

• Ghana Shippers Authority holds 8th media forum

• Ghanaian youth not employable – GUTA President

This follows assertions by the Governor of the Bank of Ghana, Dr. Ernest Addison, and Finance Minister, Ken Ofori-Atta, that the economy is responding strongly and positively to the bailout agreement with the International Monetary Fund (IMF).

Speaking in Accra at a joint press conference with the IMF, Mr Ofori-Atta expressed optimism about the economy’s outlook, adding that the government is “eager to leverage on this momentum to the very moment when the IMF Executive Board approves the first review in November”.

Additionally, Dr. Ernest Addison noted that non-food inflation has dropped significantly, while food inflation and core inflation have also decreased.

But the Minority insists these claims are false.

According to Minority Spokesperson on Finance, Isaac Adongo, all the key economic indicators like inflation, interest rates, and economic growth have all worsened compared to where they stood last year.

“The data is quite clear that the situation is worse today than it was last year and yet we would want to believe that last year was the worst period; that after the IMF in 2023, it will get better than last year, but the data suggests otherwise.

“What they have sought to do is compare mangoes with pineapples. You can’t take the end-of-year inflation of 2022 and compare it to any of the inflations other than December 2023. That is how you compare apples to apples. Because the inflation that you find during any period, year-on-year is compared to the same period the previous year and we are not in December.”

Mr. Adongo added “The inflation we are seeing today has different season pressures compared to December. In December, we all know the demand pressures. We know Christmas comes, and there is a lot of pressure on the cedi because people are looking for foreign currencies to stock for Christmas, and the inflation as at now has not experienced that, so you cannot compare that to the inflation that will be attained in December.

“Again, you cannot compare food inflation in the period of harvest to food inflation in the period of planting.

“In June 2022, when we were in the worst situation, inflation as at June was 29.8 percent. In 2023 with IMF in the boat and we were expecting things to get better, it worsened to 31.7 percent.”

Adongo, also MP for Bolgatanga Central emphasised that government has put the Ghanaian people under severe economic stress with constant increases in utility tariffs and taxes.

However, these taxes have not lessen the woes of the average Ghanaian.

“How do you look Ghanaians in the face when they are going through this rapid deterioration with their purchasing power and say that there is a turnaround? And we have achieved this (hardship) after paying more taxes as part of the IMF conditions. We have achieved this with electricity bills now tripling.

“In fact, every quarter we experience a close to 30% jump. This is the suffering of Ghanaians. We have achieved this by destroying the value of the Ghanaian through a domestic debt exchange programme which did not even spare poor pensioners.”

ALSO READ:

• SONA Debate: Minority clashes with Majority over true state of economy

• Govt still mismanaging economy even under IMF programme – Dr Ato Forson

According to him, Ghanaians have a role to play in making the country what we envision.

Speaking on Adom FM’s morning Dwaso Nsem Thursday, Mr Nsarkoh underscored the need for positive change to accelerate Ghana’s development.

“It is the collective effort of people that makes a country desirable and appealing to others. People make the difference, and we therefore have to sit and reflect on what we are supposed to do to make us better,” he admonished.

Mr. Nsarkoh further called on the government to also consider engaging relevant stakeholders to exchange ideas on how best to address the challenges confronting the economy. 

Listen to the full interview below:

According to him, the statement does not mean the country has finally resolved all issues pertaining to its economy but rather, that it has made some strides and can now see a clear path towards recovery.

“Let me start with the meaning of turning the corner and how it’s being interpreted. Clearly, the Minister for Finance spoke with all humility and he understands the challenging current global and domestic financial situation we find ourselves in.

“So our choice of the phrase ‘turning the corner’ should not in any way be interpreted as we are out of the woods, so we have seen full recovery, but as we can understand from the metaphor when you’re driving and you turn the corner, it means you see a way clearer. It means that your path is now rather straight to a better destination.

“So let us not misinterpret the phrase when we say we have turned the corner,” he said on JoyNews’ Newsfile on Saturday.

He explained that the minister did not err by using the phrase because all the statistics he presented during the budget review indicated that indeed the country has “turned the corner.”

This, he said, is further seen as the government has already satisfied some recommendations by the IMF.

Some finance experts have taken on the Finance Minister over his “turning the corner” comment regarding the economy.

“This ‘turning the corner’ is underpinned by the investments and sacrifices we have collectively made during this difficult period since March 2020,” said the Minister.

“Mr. Speaker, we have turned the corner and, more importantly, we are determined to continue down that path. Soon, we expect the measures taken to result in economic activity greater than anything experienced in the history of the Fourth Republic. Our plans and programmes should soon lead to a sustained increase in domestic production, including manufacturing and farming, replacing many of the
products that we are used to importing,” he said.

But, Finance lecturer Professor Godfred Bokpin said the country’s economic growth is being stunted by the government’s posture of not fulfilling essential obligations.

This, he said is seen as the government has suspended debt servicing on its external debt, government is not in good standing as far as payment of arrears to contractors including Independent Power Producers (IPP) is concerned.

According to him, the government has failed to fulfil its obligations to important stakeholders within the economy.

“The economy is not in full gear because we’re not honouring important obligations. They have suspended debt servicing on our external debt, we are not in optimal position with all payments to arrears to contractors, independent power producers, and important stakeholders within the economy,” he said

“So if you see some stability and you interpret it to mean you have turned the corner, you may be surprised if pressures from all these begin to mount, and then you’ll see that the stability you’re talking about is actually not durable,” Prof. Bokpin added.

ALSO READ:

• He’s not even near the corner in order to turn it – Adongo slams…

• He’s not even near the corner in order to turn it – Adongo slams…

Speaking in an interview with Bernard Avle on Citi TV, Mr Agyarko acknowledged the economic challenges faced by the country but expressed his unwavering belief in the NPP’s ability to address those challenges.

“Yes, the economy is tough, and yes we’ve made mistakes, but I still have an abiding faith in the NPP’s ability to recover itself. There is a short time period, yes, but we can do it.

“First of all, I am of a political conviction and background that we need not be doggish and slavish about things,” he stated.

He stressed the need to avoid a rigid mindset and instead accept flaws and make efforts towards necessary readjustments.

Mr Agyarko emphasized that within the party’s ideological framework, there is room for admitting mistakes and proposing alternatives to achieve the same goals.

“It should be possible to make admissions and proffer alternatives because our ideology is not a straight jacket, it allows you options within the policy framework to achieve the same goal,” he added.

In preparation for the 2024 general election, Mr Agyarko emphasised the importance of the party acknowledging instances where errors were made and accepting that there may have been better approaches.

He believed that this approach would enhance the party’s credibility and position it better to fulfil its mandate.

ALSO READ:

• Boakye Agyarko opens up on controversial Ameri deal and dismissal

• Economy under Akufo-Addo not in good shape – Boakye Agyarko

Economist Prof Lord Mensah has described as terrible the change of timelines for Ghana to secure an International Monetary Fund (IMF) programme.

This, he explained, is that the market relies on management information, so when management information turns out to be uncertain, it does not help.

“It’s a terrible one,” he said in an interview on Joy FM’S Top Story on Friday.

He said that the Finance Minister and team do not appreciate the complexity of the situation [economic downturn or debt situation].

According to him, the analysis of the situation in an article in Financial Times over the debt situation points out that Ghana won’t get a debt restructuring soon.

He cited a case with Zambia.

“Zambia is an African country. Zambia was in debt restructuring limbo for over two and half years before they even switched to default.”

His comments come after President Akufo-Addo earlier disclosed that the IMF staff will present Ghana’s request for a loan programme to its executive board by the end of March.

Also, the Finance Minister, Ken Ofori-Atta reiterated that government was hoping to secure an International Monetary Fund (IMF) Board approval by March 2023.

“We are currently working to go to the IMF board in March 2023 and possibly secure the Board’s approval for Ghana’s Programme”, he disclosed on PM Express, Business Edition with host, George Wiafe.

ALSO READ:

Stay tuned and stay positive – IMF boss urges Ghanaians

We expect an IMF programme by close of May 2023 – Ofori-Atta

However, the March date elapsed and the country has not been able to get a deal.

Meanwhile, addressing Eurobondholders at an Investors Presentation Forum on Thursday, Mr. Ofori-Atta said Ghana should expect an International Monetary Fund (IMF) Board approval for a programme by the close of May 2023.

According to him, Ghana has made significant progress, hence the need for it to get approval as soon as possible.

But reacting to this, Prof Mensah noted that although there may be verbal commitments from the creditors, it has not been documented for which it can be relied on to determine the timeline.

He added that the country would not be able to secure an IMF bailout now until the first quarter ends.

The situation, Mr Ofori-Atta, has blamed on the covid-19 pandemic which has brought world economies to their knees and the protracted Russia and Ukraine war.

“In February 2022 Russia invaded Ukraine, a situation that worsened the already weakened global supply chains, exacerbated by high financing conditions, the surging food, fertilizer, financing, building materials and fuel prices that manifested in soaring inflation domestically. These have had a debilitating toll on the cost and standard of living of our people,” he said.

The Minister made these remarks while presenting the 2022 mid-year budget review in Parliament on Monday.

“Mr Speaker, this state of affairs is quite painful for me to report to you. It is hard to see our people lament the prices of basic commodities. These are difficult times for Government and indeed for the Finance Minister.

“It is agonising to hear our food producers complain about the cost of hauling foodstuffs from
farm gates to market centres. This is not how we envisioned the economy. This is not what we planned and worked hard for,” he lamented.

He has however pledged the commitment of the Akufo-Addo-led government to turn around the fortunes of the economy.

“Recent challenges have overtaken us. Our duty is to work through these challenges and overcome them and this is exactly what keeps the President and his team awake at night,” he assured.

He explains that before the assumption of power by the New Patriotic Party (NPP), he was optimistic an NPP administration will build on the legacy of former President John Kufuor.

But he says the current state of the country has dashed his hopes for a better Ghana.

Speaking to Nhyira FM’s Kwadwo Jantuah on Kuro Yi Mu Nsem, Mr Ennin said former president John Agyekum Kufuor built Ghana from HIPC to middle-income status without oil and huge cocoa fortunes.

He says despite the chunk of resources currently at the country’s disposal, the country is rather degrading.

“I was doubting my friends who were telling me Ghana will not work again. But things that I have seen and how elderly people are lying to protect their interests, I doubt this country will work again.

“I was thinking from where former president Kufuor took us, from HIPC to middle-income status without the support of oil and huge cocoa fortunes, the subsequent administrations including the NPP will build on it, but the current state of the country has dashed my hopes.
I am telling you the truth, I am beginning to lose hope,” he lamented.

Mr Ennin admitted the country is facing hardships and the people are not happy with the NPP administration.

What he says baffles him is that despite the negative economic impact, communicators are still supporting and defending the party on every decision made.

He says it is time the NPP speaks truth to power for the government to realise the ordinary Ghanaian’s plight.

“It is not well and people are not happy with us [NPP]. I am on various platforms and sometimes you see how elderly people defend something they shouldn’t defend at all in the name of protecting their interests.

“So those who cannot voice out because of positions, Ghana will suffer because of that.
You don’t need to defend things you cannot defend. We the party members have to openly tell the government things are not well,” he added.

The former NPP MP for Obuasi, says though he is a Christian, he doesn’t support the idea of building a National Cathedral at a time when the country is facing an economic crisis.

He says the country has more pressing issues to be addressed than channelling money to build a house for God

Ghana’s economy in the eyes of the National Communications Officer of the National Democratic Congress , Sammy Gyamfi, is in tatters.

According to Mr Gyamfi, the economy is dead with the country on its way to the mortuary.

“The outlook of our economy has been graded as negative. It has never happened in the history of the country. What it means is that we’re dead and on our way to the mortuary.

“If it gets to the stage where investors are no longer willing to lend you money and the Finance Minister is saying that if you don’t approve e-levy which will give me 6.9bn in 2022 our economy will collapse, then we have no economy. He is now emotionally blackmailing us,” Mr Gyamfi said on Accra-based TV3.

In his view, the Vice President, Dr Mahamudu Bawumia, and Finance Minister, Ken Ofori-Atta would have resigned over the current situation in any advanced jurisdiction as that would have been the right thing to do.

READ ON:

• Bawumia will be easy fight for NDC in 2024 – Sammy Gyamfi

• Answers to Ghana’s problems do not lie in digitisation lectures – Sammy Gyamfi jabs…

“Alhaji Bawumia, who was once touted as the economic Messiah, economic Wizkid, has today turned himself into an IT Champion while the country is on auto-pilot,” he opined.

Play the audio above:

However, the outlook says the economy has over the last two decades evolved to be one of the most resilient in the world.

“Following the data trend and the analysis in recent years, Ghana’s economy though might not achieve a huge gap success in the short term (first quarter, 2022) yet, will continue with appreciable growth per the subsections aforementioned in the sterilized facts,” part of a report issued by GITFiC stated.

Admitting the country has not been spared in the adverse effect of the coronavirus pandemic just like the rest of the world, it indicated the management of economic affairs was laudable.

“It is worth noting that the recent COVID-19 pandemic has affected Ghana’s economy just like any other economy in the world, yet, the state did not do badly in managing its economic affairs during and after the intense era of the pandemic,” it added.

Read the full report below:

GITFiC’s OUTLOOK ON GHANA’S ECONOMY FOR THE FIRST QUARTER OF THE YEAR 2022

Introduction

CONSIDERING SOME ECONOMIC INDICATORS TO FORECAST GHANA’S ECONOMY, IN EARLY 2022.

Economic growth and development has been an ancient phenomenon even before the great depression from 1929 to 1933 where various challenges befalling one’s economy are looked into for stability.

While economic growth covers the ascendant increase in the size of one’s economy, development encapsulates how the growth impacts the life of the citizens, hence, affecting their standard of living positively.

This demands that various drivers of the economy, preferably the macro-economic indicators such as the gross domestic product (GDP), inflation, debt to GDP, employment be scrutinized and where necessary, strengthened. This is a global phenomenon and Ghana is no exception.

The economy of Ghana, both under the military regime and democratic governance, has its challenges amidst the numerous success stories. Yet, the economy has evolved to be one of the resilient in the last two decades.

Sterilized facts about some economic indicators

The Gross Domestic Product –The gross domestic product captures all economic activities found within the boundaries of one’s economy. This is measured in nominal GDP adjusted for prices. Ghana’s real GDP in the first quarter of 2020 was GH¢43,999.5million. This increased to GH¢45,378.1 million in 2021 representing a 5.19% increment.

In the second quarter of 2021, the real GDP recorded was GH¢39,162.2 million compared to GH¢37,710.3 million in 2020. The real GDP recorded in the third quarter of 2020, GH¢40440.3 million, increased to GH¢43,093.5 million in 2021 representing a 1.3% upward shift. The GDP in 2020 fourth quarter increased by 0.8% in 2021.

Employment/Unemployment – Unemployment establishes the available people within the labour force willing to work at an existing wage rate yet are not finding a job.

Ghana recorded an unemployment rate of 4.53% in 2020 compared to 4.12% in 2019 and 4.16% in 2018 according to the Ghana Statistical Service.

Debt to GDP Ratio – This compares an economy’s total output measured in real GDP to its debt over some time.

Hence, a higher level of an economy’s debt reduces its economic growth and should this be sustained, affects the standard of living of the people since the government will divert huge sums of money that could be used to implement a social intervention or for infrastructural development to service its debt.

This comprises the external debt portfolio and other internal debt accumulated in support of certain internal sector operations.

In 2018, two major occurrences happened that affected the debt to GDP ratio – recalibration of the measurement of debt to GDP and the financial bailout in the financial sector. Amidst the two, Ghana’s debt to GDP stood at 57.9% in 2018. According to the Ministry of finance, Ghana’s Gross Public debt ending December 2020 was GH₵291.63 billion (US$50.83 billion).

This represented about 71.8% of the economy’s GDP showing 33.6% upward movement against the 62.4% recorded in 2019.

Inflation – The persistent increase in the general price level of goods and services in a particular economy over time is a major indicator of the success of one’s economy. Inflation in Ghana stood at 9.4% in December 2018 compared to 7.9% in 2019, 10.4% in 2020, and 10.6% in August 2021. Inflation, also known as consumer price inflation has its source from the consumer price index (CPI) which measures the proportionate changes in the price level of household consumption of various goods and services. The third and fourth quarters of 2020 showed an inflation rate of 10.8% and 10.1% respectively. Likewise, the first and second quarters of 2021 revealed a 10.2% and 7.9% rate of inflation to that effect.

The way forward per 2020-2021 trend

The robustness of an economy is a gradual process given that most of the macroeconomic indicators have to improve to an appreciable state where there is an increase in poverty reduction hence achieving a high-quality standard of living. It is worth noting that the recent COVID-19 pandemic has affected Ghana’s economy just like any other economy in the world, yet, the state did not do badly in managing its economic affairs during and after the intense era of the pandemic. Following the data trend and the analysis in recent years, Ghana’s economy though might not achieve a huge gap success in the short term (first quarter, 2022) yet, will continue with appreciable growth per the subsections aforementioned in the sterilized facts.

Gross Domestic Product – The Ghana International Trade & Finance Conference (GITFiC) expect an evident revival in Ghana’s growth as the economy is gradually improving from the shocks of COVID-19 and its related concomitant effects.

As a well-diversified economy, Ghana’s extractive sub-sector (oil and Gold) and cocoa still remain reliant for revenue generation that anchors growth. The crosscutting production activities also rely heavily on flow of electricity supply.

With favourable expectation in commodity price shocks and improved flow of electricity generation and supply, GITFiC project an upward increase of GDP between 4.9% to 6.3% showing a surge given the previous year’s data and the various measures put in place by the government to raise revenue for productive activities in the economy.

Employment – The 4.53% unemployment rate in 2020 could be partly attributed to the COVID-19 pandemic.

The gradual relief from the effects of the pandemic in Ghana, the employment policies highlighted in the 2021 budget to be implemented in 2022, among other measures to be implemented, should unemployment rate not decrease beyond the hovering figure of 4.1 in 2018 and 2019, GITFiC project maximum 4.4% unemployment rate in 2022.

Debt to GDP Ratio – In fact, the debt to GDP ratio has received a consistent increase for over a decade in Ghana. The implementation of the holistic free senior high school policy in 2017 against the existing “progressive free senior high school” in part added to Ghana’s huge debt to GDP in recent years.

However, we expect that experts in the field are learning from their experiences on how to reduce the cost involved in government financing the policy through internally generated funds alongside other policies to curb the borrowing power. 

At least, a 2% to 3% reduction in debt to GDP ratio in 2022 will be a good move to build on by the nation.

Inflation – Per the sterilized facts highlighted above, GITFiC expect a further reduction in inflation given that 2021 saw a reduction showing considerable revival from the pandemic shocks internationally and domestically.

Conclusion

Ghana is still in the right direction with considerable revival from the shocks of the pandemic and other challenges hoping that the increase in taxes in various sectors in Ghana’s economy will reflect in developmental projects.

HIGHLIGHTS:

• GITFiC project an upward increase of GDP between 4.9 to 6.3%
• GITFiC project a maximum 4.4% unemployment rate in 2022.
• GITFiC predicts a 2% to 3% reduction in debt to GDP ratio in 2022
• GITFiC predicts a reduction in inflation in 2022