At a press briefing in Accra, the policy think tank said the government’s decision to cut the levy from three per cent to one per cent—intended to cushion investors—runs counter to a growing global shift towards resource ownership and enhanced national benefits.

The Growth and Sustainability Levy was previously increased from one per cent to three per cent as part of efforts to boost revenue from the extractive sector and ensure the country benefits more from rising global commodity prices.

A Distinguished Fellow of the IEA, Sophia Akuffo, questioned the rationale behind the latest policy move.

“Why did government increase royalties, ostensibly to capture greater value from Ghana’s mineral wealth, only to simultaneously dilute that gain through tax concessions?” she asked.

Justice Akuffo said the reduction undermines the broader objective of ensuring that Ghana derives maximum benefit from its extractive sector, and called for coherent and predictable fiscal policies aligned with long-term national interests.

She expressed concern that despite Ghana’s vast natural resource endowment, the country has repeatedly turned to the International Monetary Fund for financial support.

Justice Akuffo further described as worrying the recent announcement by the Minister of Finance on plans to borrow GH¢17 billion to pay salaries, urging the state to leverage its mineral wealth to drive national development.

She pointed to countries such as Botswana, Burkina Faso, Chile and Venezuela as examples of nations adopting models centred on resource ownership and value retention.

“These developments have shown that asserting sovereignty does not repel investment; rather, it redefines the terms of engagement in favour of national development. They also show that Africans have woken up, and Ghana must join the awakening,” she said.

Justice Akuffo stressed that the expiration of more than 30 mining leases, record-high global mineral prices and the discovery of new critical minerals present Ghana with a rare opportunity to reset its resource governance framework.

She said this should involve engaging both local and foreign private sector expertise through service contracts that preserve national control while maximising economic benefits for industrial transformation.

The IEA therefore urged the government to adopt consistent fiscal policies that strike a balance between maintaining investor confidence and safeguarding national development priorities, to ensure that Ghana’s natural resource wealth translates into sustainable economic growth.

ALSO READ:

• We kept lights on without dumsor levy — NPP’s Awal Mohammed

• Don’t boast about scrapping E-Levy — NPP’s Jennifer Queen to NDC

The IEA said the result is not surprising, considering the macroeconomic gains recorded in 2025.

“The cedi appreciated by about 32% against the U.S. dollar between 2024 and 2025. The strengthening of the cedi, together with broader macroeconomic improvements, have helped ease inflationary pressures, which is reflected in the decrease in the price of fuel at the pump and in the cost of some imported consumer goods. Hence, inflation declined sharply from 23.8% in 2024 to 5.4% in 2025”, it disclosed in a statement.

Other positive developments that may have influenced people’s perception of the direction of the country in the survey include

The significant decline in the debt-to-GDP ratio from 61.8% at the end of December 2024 to 45% by the end of October 2025.

The reduction in the average lending rate (cost of borrowing) from 30.2% to 22.2% over the same period, and the gradual recovery from the effects of the Domestic Debt Exchange Programme on citizens.

The survey stated that as a result, confidence is gradually returning to, and many Ghanaians are increasingly hopeful for a better tomorrow under the new government.

Notwithstanding the positives, the report pointed out that the proportion of people (34%) who indicated they are not happy with the way things are going in Ghana shows that a sizeable minority of the population remains discontented about national progress. This highlights the fragility of public optimism and underscores the importance of addressing issues that directly affect everyday life.

The nationwide public opinion poll was conducted across all 16 regions of Ghana between 20th and 28th December 2025. This was based on responses from 1,022 respondents.

READ ALSO:

• 
  Apologise to Bawumia for false claims — Nana Akomea tells Kennedy Agyapong
• Sissala Chiefs petition Mahama for creation of South District
• GHATOF calls for trotro and okada restrictions on major highways
• GHATOF to set up tourism brigade to ensure proper sanitation at chop bars

According to the institute, this approach may have both positive and negative consequences.

In its critique of the 2025 Budget, the IEA stated that it is prudent to invest more of the country’s resources today to generate a larger national income, which can then be shared equitably.

However, it warned, “if we place equity first, we may likely end up with a smaller national income to share in the future.”

While maintaining the free Senior High School benefits, free nursing trainee allowance, free teacher training allowance, free Livelihood Empowerment Against Poverty (LEAP), and free National Health Insurance Scheme (NHIS), the 2025 Budget also proposes free first-year university fees, free primary health care, and free sanitary pads for schoolgirls, among others.

The IEA acknowledged that these social benefits are economically and socially beneficial. However, it cautioned that they place a substantial burden on the budget, leaving limited room for more productive investments.

It further noted that because the budget is dominated by employee compensation and free benefits, the investment spending component is severely constrained—an issue that, in its view, hinders economic growth.

READ ALSO:

• Adomako urges Energy Minister to address Kumasi dumsor with solutions
• Lands Minister launches initiative to reform small-scale mining sector

The taxes scrapped include the Electronic Transactions Levy, Emissions Tax, and Covid Tax.

In its comments on the 2025 Budget and Economic Policy, the IEA noted that while it had recommended reducing the Betting Tax to 5% instead of 10% for both revenue and deterrence purposes, the minister opted to abolish it entirely.

Additionally, the IEA proposed scrapping the Growth and Sustainability Tax (GST), which was initially introduced in 2001 as the Fiscal Stability Tax. However, the minister not only retained it but also increased the rate from 1% to 3% for extractive companies.

Growth and Sustainability Tax Not High Enough

The policy think tank argued that Ghana should demand more revenue from the extractives sector, including a Super-Profit or Windfall Tax.

“From that standpoint, the IEA does not believe that the GST of 3% is high enough. The Institute has consistently advocated for Ghana to maximise its benefits from its extractives by reviewing the existing laws to enable the country to demand more favourable fiscal regimes,” it stated.

The IEA also criticized the projected revenue-to-Gross Domestic Product (GDP) ratio of 16.1%, noting that it is only marginally higher than the 15.9% for 2024 and lacks ambition.

“As the Institute indicated in its pre-Budget statement, plugging the several tax loopholes, in addition to other measures, could significantly increase Ghana’s revenue-to-GDP ratio, which falls far below its peer middle-income countries’ average of 25-30%,” it added.

After peaking at GH¢16.30 in October, the cedi declined to GH¢15.37 in November and further to GH¢14.70 in December. The GHS/GBP and GHS/EUR rates followed similar patterns.

The IEA attributed this decline to increased intervention by the Bank of Ghana in the lead-up to the 2024 election.

“In fact, by October, before the intervention, the GHS/USD had risen to GH¢16.30,” the institute noted.

“The question is whether the appreciation in November and December can be sustained. The fact is that, as indicated below, the Bank of Ghana’s intervention alone cannot ensure lasting exchange rate stability without far-reaching reform measures,” it added.

The year-to-date depreciation of the cedi against the dollar peaked at -27.1% in October 2024 before improving to -22.7% in November and -19.18% in December. This followed a 27.8% depreciation in 2023.

The economic think tank highlighted that the cedi has a history of chronic depreciation due to the persistent gap between foreign exchange (FX) demand and supply. Closing this gap, it noted, requires policies to curb FX demand and boost FX supply.

“On the FX demand side, it is necessary to actively promote domestic production of import substitutes to reduce demand for FX; entrench fiscal and monetary discipline to ease demand pressures, including demand for FX; and enforce domestic FX market regulations,” the IEA stated.

On the supply side, the think tank recommended active promotion of exports and remittances, as well as greater Ghanaian ownership of resources and economic assets to increase FX inflows.

It concluded that while these proposals are not new, they have not been given the necessary attention, making it important to reiterate them.

READ ALSO:

• Minister-Designate hails District Housing Project as a game-changer for rural development
• AMA reaffirms commitment to tackling Accra’s filth and homelessness
• MPs engaged in galamsey will face severe consequences – Bagbin warns

In its bi-monthly Economic Outlook, the economic think tank stated that the budget should also include measures to ensure stable and less costly power to enhance the competitiveness of the economy.

Additionally, the IEA emphasized the need for a budget that acknowledges the lack of fiscal space to support economic development due to limited government revenue.

“While taking steps to increase tax revenue, it is also important to recognize the potential of the natural resource sector to contribute to development. Tapping this potential will require changes to the natural resource fiscal regimes to increase Ghanaian ownership and benefits,” the report noted.

It further stressed that priority should be given to local value addition to natural resource products to maximize revenue from the sector.

The 2025 Budget is expected to align with the Economic Credit Facility (ECF) programme by the International Monetary Fund (IMF).

Specifically, the IEA stated that the ECF’s fiscal consolidation stance is expected to be followed to sustain macroeconomic stabilization efforts.

In this regard, it noted that the overall fiscal deficit is appropriately set to decline further to -2.7% from the projected -3.5% in 2024, while the primary surplus will increase to 1.5% from 0.5%.

“The tight fiscal stance is in line with the debt sustainability trajectory envisaged under the programme,” the IEA pointed out.

The think tank added that staying on this path is necessary to avoid another painful debt restructuring and to foster investor confidence in the economy.

E-levy, COVID tax, and betting tax to be scrapped

In line with the government’s pre-election promise, several taxes are expected to be abolished, including the E-levy, COVID tax, emissions tax, and betting tax.

The IEA indicated that scrapping these taxes will ease the financial burden on households and businesses. However, it highlighted that the resulting revenue shortfall is expected to be offset by reinforced efforts to close tax loopholes, broaden the tax base, and strengthen tax administration, among other measures.

READ ALSO:

• ECG denies responsibility for fire at Koforidua residential facility
• Security prevents alleged NDC thugs from attacking GRA headquarters
• Ghana’s projected growth rates for next 5 years by IMF below potential – IEA

In its bi-monthly Economic Outlook, the IEA stated that Ghana has excess resources and capacities that could enable it to grow at higher rates, which are necessary to accelerate the country’s development and poverty alleviation. It added, “What is required is to leverage these resources to increase investments in physical capital, human capital, and technology to drive economic growth.”

Despite the strong and rising growth in the third quarter of 2024, Ghana’s growth for the year was projected at just 4.0%. This suggests that growth will slow down considerably in the fourth quarter of 2024.

The IEA noted that the reason for the slowdown was not immediately known.

“It could be due to a projected decline in the value of some of Ghana’s major commodities, either from lower volumes and/or prices,” it stated.

The projected growth of 4.0% for Ghana in 2024 is slightly higher than the growth rates of 2.9% and 3.8% recorded in 2023 and 2022, respectively.

Real GDP growth is projected in the IMF programme to rise to 4.4% in 2025, 4.9% in 2026, and then plateau at 5.0% during 2027-2029.

“These growth rates are, however, below the country’s potential,” the IEA expressed concern.

Economy expanded by 7.7% in Q3 2024

Ghana’s economy expanded by 7.7% in Q3, much higher than the 2.2% recorded in the same period of 2023. Non-oil real GDP growth was a little lower at 7.2%.

The strong growth recorded in overall real GDP in Q3 2024 was fueled by extractives, largely oil and gold.

READ ALSO:

• Banks’ average lending rate hovered around 30% during the second half of 2024
• We have capacity to support 24-hour port operations – Customs
• AT announces exciting 2025 plans to enhance customer experience

He argues that Ghana possesses abundant natural resources capable of fostering national growth and should not depend on external debt.

“Ghanaians must reject leaders with a borrowing mindset. We have enough resources here at home. We don’t need to go out and borrow. We should accept only leaders prepared to enable Ghana to derive maximum benefit from its natural resource wealth,” Dr. Kwakye stated in a social media post.

In a separate post on X (formerly Twitter), Dr. Kwakye outlined six critical factors he believes will influence the election outcome: the economy, illegal small-scale mining (galamsey), corruption, nepotism and cronyism, LGBTQ+ issues, and the Free Senior High School program.

“Elections are almost invariably a judgment on the incumbent administration—its record,” he said.

See the post below:

READ ALSO:

• Coup d’état in Ghana will be difficult, but we’re not immune – Dr. Suleiman
• Asiedu Nketia accuses House of Chiefs president of campaigning for NPP
• 2024 polls: Let’s draw the line – Dr. Suleiman on freedom of speech [Listen]

This decision follows Cheddar’s withdrawal from the event, where he was expected to appear on Wednesday, September 18.

Despite being scheduled to speak at 6 p.m., he pulled out without providing a reason.

The IEA had previously announced its schedule for the presidential evening encounters and debates on Friday, September 13.

Cheddar was set to be the first guest, with Alan Kyerematen scheduled to follow on September 24.

Additionally, the IEA has slated its first and second presidential debates for October 22 and November 19, 2024, respectively.

Source: Adomonline

READ ALSO:

• Call for forensic audit is non-negotiable – Sammy Gyamfi
• EC manipulating voter’s register to influence election outcome – NDC alleges
• NDC Greater Accra Chairman strengthens grassroots mobilization ahead of 2024 elections

The first presidential debate will take place on October 22, 2024, followed by the second on November 19, 2024.

Also, a Vice Presidential Debate is set for November 5, 2024.

In a recent statement, the IEA revealed plans for two presidential debates, one vice-presidential debate, and five Evening Encounters in the lead-up to the December 7 polls.

The Evening Encounters will commence on Wednesday, September 18, with the final one scheduled for Tuesday, October 15.

However, the National Democratic Congress (NDC) has announced that their flagbearer will not participate in the debates, citing concerns about the credibility of the organizers.

ALSO READ:

Vanessa Nicole finally replies Funny Face

All you need to know as National Service Authority releases 2024/2025…

Traders lament maize shortages as farmers are accused of defying export ban…

According to its July-August 2024 Economic Outlook, it said the domestic component of the debt has increased by as much as GH¢32.7 billion or 12.7%, from GH¢257.3 billion to GH¢290.0 billion in the year to June 2024, whereas the external component has increased only marginally by US$0.9 billion or 0.3% from US$30.1 billion to US$31.0 billion.

The IEA pointed out that since the government currently lacks access to the international bond market, it is understandable that it is only borrowing from the domestic market.

Nonetheless, it advised that the borrowing is closely monitored and controlled, so that it does not get out of hand and land the country into another major debt crisis.

As of end of June 2024, Ghana’s public debt stood at GH¢742.0 billion. This represents a year-to-date increase of GH¢133.6 billion or 22.0%.

The debt in dollar terms was US$50.9 billion, lower than US$52.2 billion at the end of December 2023, as a result of the effect of the sharp increase in the cedi/dollar rate on the domestic component.

In Gross Domestic Product terms, the debt was 70.6% at the end of June 2024 compared to 72.3 % at the end of December 2023. This is due to the much higher nominal GDP in 2024 compared to 2023.

In the Economic Credit Facility programme, the public debt is projected at 82.5% of GDP for 2024 [IMF Executive Board’s Second Review of Ghana’s ECF, June 28, 2024].

IEA said the projected figure is surprisingly high since the envisaged debt restructuring and fiscal consolidation under the ECF are supposed to place the debt on a declining path, reaching what is regarded as a sustainable level of about 56% by 2028.

“It is not clear whether this sustainable target is still attainable”, it concluded.

Source: Joy Business

READ ALSO:

• Proposed energy sector merger could threaten electricity affordability – IES warns
• Top 10 African countries with the highest business bribery risks
• Over 100,000 acres of Cocoa farms destroyed by illegal mining – Farmers demand action

On Thursday, August 22, the IEA launched a nine-member Presidential Debate Committee to facilitate discussions with political parties in preparation for the 2024 general elections.

Chairperson of the committee, Justice Sophia Akuffo, emphasized their dedication to ensuring a debate process that encourages participation and focuses on issue-based, people-centered discussions.

In an interview, Justin Kodua highlighted the significance of these debates, stating that they provide an essential platform for political parties to present their visions and policies to the electorate.

He acknowledged that while the NPP had previously opted out of similar debates in 2014 and 2016, the party is now eager to showcase its achievements and offer voters a clear comparison of what each party brings to the table.

“The reason we are interested in this debate is to articulate the vision our flagbearer has been sharing across the country for the next four years. Although we did not participate in 2014 and 2016 for specific reasons, this time, the party is ready for any debate. We believe that as a nation, we have made progress, and Ghanaians need to see which party presents the best and most credible manifesto,” he said on Channel One News.

Meanwhile, the opposition National Democratic Congress (NDC) has expressed hesitation to participate, citing dissatisfaction with the IEA’s approach.

The Mahama 2024 campaign team criticized the IEA for not consulting the NDC before announcing the debates, deeming the move unacceptable.

Despite this, the IEA is determined to proceed with the debate process, even if the NDC chooses not to participate.

Source: Adomonline

READ ALSO:

• Bimbilla: I won’t go independent – Disqualified NPP parliamentary aspirant
• 2024 polls: We’re still engaging political parties on presidential debate – IEA
• Bawumia’s policies will benefit all Ghanaians – Napo assures

The National Democratic Congress (NDC) had previously declared its intention not to participate in the debate, citing a lack of prior consultation.

However, in an interview, Dr. Ayim-Darke expressed optimism, noting that discussions are ongoing to encourage all qualified candidates to take part in the debate.

“We are in active engagement with the political parties, and we believe that at the right time, we will clearly state our position. The IEA has a long history of organizing these debates.

“There have been instances where some political parties did not respond to the invitation, yet the IEA proceeded with the debates. We trust that when the time comes, the situation will naturally evolve.

“History is on our side, and we remain committed to engaging with all political parties. We strongly believe that those who aspire to govern must be willing to subject themselves to scrutiny by the citizens. Our doors remain open for further engagement,” he told Citi News.

Source: Adomonline

READ ALSO:

• Bawumia’s policies will benefit all Ghanaians – Napo assures
• NPP constructed all landmark projects in Tepa – Ahafo North NPP PC
• NPP to settle on Andrew Asiamah as 2024 candidate for Fomena

They are fiscal consolidation, consisting of an appropriate mix of revenue-enhancing and expenditure-rationalisation measures to rein in fiscal deficits and revenue measures aimed at stemming losses by closing the several loopholes in the tax system.

Others are expenditure measures aimed at reducing recurrent spending such as emoluments and spending on goods and services, reducing the current Fiscal Rule of 5% deficit to Gross Domestic Product (GDP) ceiling to a tighter rule of 3% in conformity with the ECOWAS criterion and establishing an independent Fiscal Council with the mandate to evaluate and monitor fiscal policy, among other functions, to help foster fiscal discipline and fiscal sustainability.

On monetary policy management, the IEA said it should be strengthened through the strict enforcement of the 5% ceiling on Bank of Ghana’s lending to government through reinforced Parliamentary oversight; Improved inflation management by supplementing the Inflation Targeting framework and the appropriate coordination of monetary policy with fiscal policy to ensure a low regime of interest rates to spur investment and economic growth.

On exchange rate management, it said it should be improved by implementing measures to address the perennial foreign exchange supply-demand imbalance through some of the structural reforms; better management of the exchange rate through prudent fiscal and monetary policies and building up Bank of Ghana’s reserves progressively to at least six months of import cover to strengthen the exchange rate.

The additional reserves it said could be derived from natural resources through increased ownership and value addition.

Source: Joy Business  

ALSO READ:

Frequency of economic crises and IMF bailouts clearly demonstrate serious policy.

Coalition of Concerned Nzema People threaten legal action over controversial Petroleum…

In particular, it said, the economy has not witnessed any significant transformation since independence, producing largely primary commodities for export while relying heavily on wide-ranging imports.

“Economic policies have largely followed the orthodox neoclassical model of free markets and a limited role for the state, a model more suitable for mature economies. The failures expected from free-market policies have not been adequately addressed, with dire consequences. The country needs to chart a new path since repeating the same policies would not achieve different outcomes.”

“The new path should include transformative policies to build a resilient, self-reliant economy. It should also prioritise the leveraging of the country’s internal resources and capacities to support crosscutting transformational policies”, it explained.

As the December 2024 elections approach, the IEA put together a set of key policies for the attention of the incoming Government, covering areas such as Macroeconomic Stability; Economic Growth and Employment; Infrastructure; Energy Security; Agriculture and Food Security and Industrialisation and Economic Transformation.

Macroeconomic instability

The IEA also expressed concern about the macroeconomic instability, in the form of high inflation, exchange rate instability, high interest rates and unsustainable debt, that it said has plagued the Ghanaian economy for a long time.

The instability, it pointed out, derives from both underlying structural weaknesses of the economy and weak macroeconomic fundamentals.

The structural weaknesses, it added, continued to constrain production and supply, while expansionary fiscal and monetary policies fuel demand pressures.

“The resulting supply-demand imbalances manifest in macroeconomic instability. As the situation reaches a crisis point—and we lose policy credibility internationally—we rush to the IMF for a financial bailout, backed by a program that prescribes measures aimed at restoring macroeconomic balance to the economy, without, however, addressing the fundamental structural weaknesses. After each programme, however, we return to our old bad ways of fiscal profligacy accommodated by monetary expansion, which generates another episode of instability—and the cycle repeats itself.”

It concluded that the programme apart from the economic hardship that macroeconomic instability inflicts on Ghanaians, without stability, sustained high growth will be difficult to achieve.

Therefore, it called for the country to chart a new path of entrenching macroeconomic stability.

Source: JoyBusiness

READ ALSO:

• Coalition of Concerned Nzema People threaten legal action over controversial Petroleum Hub project
• Atlantic Lithium grants over 1.4 million performance rights to propel Ewoyaa Project growth
• We’ll establish a Fintech Fund with a seed capital of $100m – Bawumia

Year-on-year inflation tumbled for the seventh consecutive to 20.9% in July 2024. This was largely due to base side effects.

But in a statement by the IEA, it said the high inflation has had a severe compounding effect on the cost of living.

While inflation has been on the decline, it remains high by international standards. Moreover, it has had a severe compounding effect on the cost of living.

The fiscal deficit was -12.0% in 2021 and -11.8% in 2022, before declining to -3.6% in 2023, due to the impact of the Domestic Debt Restructuring Programme (DDEP) along with the suspension of external debt servicing.

The IEA continued that the deficit is projected to remain low at 4.7% in 2024.

The public debt to Gross Domestic Debt (GDP) ratio rose from 79.2% in 2021 to 92.7% in 2022 and then declined to 82.9% for 2023.

For 2024, the IMF projects the debt to GDP ratio to decline only marginally to 82.5%, well above sustainability levels.

Inflation for July tumbled to 20.9%.

Inflation for the month of July 2024, tumbled to 20.9%.

This represented a decline of 1.9 percentage points from that of June which was at 22.8%.

According to the Ghana Statistical Service, food inflation went down to 21.5% from 24.0% in June 2024, while non-food inflation also fell to 20.5%.

This comes after concerns raised by the Mahama 2024 Campaign that the Institute announced such activity as if a stakeholder, the National Democratic Congress (NDC) has been engaged.

“The Constitution of Ghana does not grant the IEA any authority to organise elections-related activities. The fact that the IEA has not shown the decency or respect to at least inform the NDC of its plans raises serious questions about its motives,” the release signed by John Mahama’s spokesperson Joyce Mogtari indicated on July 19.

According to the response signed by the IEA, “the IEA did not indicate that it had engaged or informed any Political Party or Presidential Candidate to participate in the Debates.”

The statement signed by IEA Chairman, Charles Mensa explained that “Indeed, the IEA had not engaged any Political Party or Presidential Candidate prior to its Press Release.”

“The Institute intended to follow the Release with individual letters to the Candidates inviting them to the Debates and other activities.”

The NDC also expressed dissatisfaction over the perceived lack of engagement from the IEA and allegations of favoritism towards the New Patriotic Party (NPP).

On this tangent, the IEA emphasised that “the IEA gives equal opportunity to all the Candidate” and therefore “cannot be said to be fronting for any political party, in particular the NPP as is being alleged.”

ALSO READ:

Tepa-Goaso road: Contractor curses those who steal materials [Listen]

Dusty Huhunya road kills one, 14 in critical condition

“The Constitution of Ghana does not grant the IEA any authority to organise elections-related activities. The fact that the IEA has not shown the decency or respect to at least inform the NDC of its plans raises serious questions about its motives,” the release signed by Mr Mahama’s spokesperson, Joyce Mogtari indicated.

The campaign, on Friday, accused the IEA of lacking the decency and respect to inform the NDC of its plans, raising questions about the institute’s motives.

The campaign further alleged that the IEA is “acting as a front for the New Patriotic Party (NPP) and seeks to manipulate the electoral process in favour of the ruling party.”

The statement said Mr Mahama’s conversations have targeted a wide range of audiences and focused on addressing the needs and concerns of the people of Ghana.

Below is the full statement

6-year-old boy dies after falling into abandoned pit at school [Listen]

We don’t play politics with youth unemployment issues – YEA CEO…

In a statement issued on Wednesday, July 17, the IEA highlighted that these debates are crucial for voters to assess both presidential and vice-presidential candidates, aiding in informed decision-making.

While the exact date for the debates has not yet been determined, the IEA confirmed that they will take place before the December election. The timeline for the debates will be revealed during the launch of IEA’s election activities.

The debates will cover various thematic areas, including the economy, governance, natural resources, agriculture, education, health, labour, gender, children, youth, and other social issues.

“The debates will provide a common platform for the Presidential Candidates and Vice-Presidential candidates to discuss various aspects of the nation’s development process. It will be a form of policy dialogue engagement during which the Candidates will have the opportunity to present their viewpoints, plans, and programmes, and also point out weaknesses in the policies of their co-contestants and present alternatives to those policies and programmes,” the statement noted.

The Institute encourages all candidates to utilise the debates to inform Ghanaians about their policies for addressing the country’s challenges.

It is not clear if the two major parties will participate in the debate considering that the National Democratic Congress has already rejected a call from the New Patriotic Party’s presidential candidate to debate him.

They stressed the need for immediate and concurrent implementation to ensure maximum effectiveness.

In a press statement issued on Monday, May 20, the IEA disclosed the importance of addressing the fundamental factors affecting the demand and supply of foreign exchange (forex).

Key among the IEA’s recommendations is the initiation of discussions with the International Monetary Fund (IMF) and external creditors to expedite the process of external debt restructuring.

The IEA believes that accelerating this process would enable the IMF to disburse the third tranche under the Extended Credit Facility (ECF) programme.

This disbursement is seen as a critical step, as it would trigger the release of additional funds from other development partners, including the World Bank, the African Development Bank, and bilateral creditors.

According to the IEA, these funds are crucial for augmenting the reserves of the Bank of Ghana.

Increased reserves would allow the Bank to inject more liquidity into the forex market, which is essential for mitigating the current panic and speculative activities contributing to the Cedi’s depreciation.

The IEA noted that these measures must be implemented without delay, starting from Monday, May 20, to effectively stabilize the currency and restore confidence in the forex market.

“Measures to address the incessant depreciation must aim at dealing with the underlying determinants of FX demand and supply. The measures must also have timelines, which we have conveniently categorised into the fire-fighting, short-term, medium-term and long-term phases. The measures for these phases are not necessarily to be undertaken sequentially.

“Indeed, many of them are required to begin today and to run simultaneously in order to achieve maximum impact. We decided to include this phase to answer the question often put to us as to what we can do immediately to stop the “bleeding” of the cedi. Obviously, the options here are limited.

“The immediate option we can think of is for the Government to engage with both the IMF and the external creditors to reach an early agreement on the external debt restructuring exercise. This would allow the IMF to release the third tranche under the ECF program.

“The IMF release, in turn, would unlock funds from other development partners, such as the World Bank, African Development Bank and bilateral creditors. Those funds would boost BoG’s reserves, allowing it to provide higher liquidity to the FX market to calm the current panicky and speculative situation.”

ALSO READ:

• Watch Mohammed Kudus’ stunning bicycle kick goal against Manchester City [VIDEO]
• Jubilation in church as Adom Kyei-Duah shares $3m to members
• CCTV captures moment car ran over 5 people, killing Policewoman at Abrepo junction

Dr. John K. Kwakye, Director of Research at IEA Ghana, said this during a press briefing on Wednesday to present the Institute’s reflections on President Akufo-Addo’s State of the Nation Address (SONA) on February 27 and the Monetary Policy Committee (MPC) Decision delivered by the Bank of Ghana Governor on March 25.

During the SONA, President Akufo-Addo praised Ghana for recovering its position as Africa’s largest gold producer, surpassing South Africa with gold production of four million ounces.

Dr Kwakye responded: “Taking Ghana’s reported annual production of four million ounces and multiplying by the current world price of US$2,200 per ounce gives US$8.8 billion. The question is, how much of this belongs to Ghana? Ghana’s share is not likely to exceed 20 per cent, or about US$1.8 billion, while the much bigger share of about US$7.0 billion goes to foreign companies.”

President Akufo-Addo also spoke about the development of a local gold refinery to increase the value of the commodity.

The Institute said the policy was long overdue and suggested that it be extended to all the country’s natural and agricultural commodities.

“We should construct cocoa processing factories and refineries for oil, bauxite, lithium, etc., to take advantage of the vast difference between the prices of the refined products and the raw commodities,” Dr Kwakye said.

The President again noted that the Domestic Debt Exchange Programme (DDEP) had made considerable progress.

Dr Kwakye commented on this, saying, “We should not lose sight of the immense hardship the DDEP has brought on bondholders, including pensioners and the financial sector, which was heavily exposed to Government debt. Even BoG was not spared the adversity.”

The Institute reiterated that Parliament should impose a debt ceiling of 60 per cent of GDP in the Fiscal Responsibility Act, in addition to the existing deficit ceiling, to ensure long-term debt sustainability.

Regarding taxes, the IEA noted that the government was elected on the premise of moving from taxation to production.

However, the Government had done the opposite, with the country experiencing “proliferation of taxes”.

The Institute contended that taxes including the E-levy, COVID-19 Levy, Growth and Sustainability Levy, Sanitation Levy, the failed Emissions Levy, Betting Levy, and VAT on power consumption were “multiple, nuisance or outdated taxes” that could not be justified.

The Institute pointed out that the government did not make an equal effort to reduce its expenditure, despite its size and multiple flagship initiatives.

“The fiscal consolidation being implemented under the IMF program has to be even-handed; it must fall equally on expenditure and not just taxes,” Dr Kwakye emphasised.

READ ALSO:

• Police inspector accused of murdering his girlfriend not dead

• UCC medical student pays fees for 10 university students

• Court summons five as Mercy Chinwo, husband take legal action over son’s paternity saga

Whilst the Institute maintained that ECG should remain state-owned, it stressed that the new crop of managers should be drawn from wherever applicable, both locally and internationally, with appointment devoid of political party affiliation and rather based on competence.  

It noted that curtailing the country’s periodic power outages required a holistic approach, which must include dealing with the legacy debt, reducing the industry-high distribution losses, improving bill collections, stemming illegal connections and moving to legitimate cost-recovery tariffs.  

Dr John K. Kwakye, Director of Research, IEA Ghana, said this at a press briefing on Wednesday to present the Institute’s reflections on the State of the Nation Address (SONA) delivered by President Akufo-Addo on February 27, as well as the Monetary Policy Committee (MPC) Decision delivered on March 25 by the Governor of the Bank of Ghana.  

In his message during the SONA, President Akufo-Addo touted the government’s success in ending the intermittent power outages called “Dumsor” locally and managing “to keep the lights on in the last seven years”. 

Whilst IEA acknowledged that power had been much more stable in the last seven years than the four years earlier, it also noted that the subsequent stability benefited from previous investments in the power sector.  

“What we also know is that the stable power has been achieved at considerable budgetary cost some of which emanated from previous contractual agreements,” Dr Kwakye added.  

The Director of Research highlighted some areas of interest, which were not captured in the SONA – corruption and illegal mining, popularly known as “Galamsey”. 

Dr Kwakye said both local and international corruption reports showed that no significant progress had been made by the country in tackling the canker in the past 30 years.  

He proposed that if the Office of the Special Prosecutor could be successful in fighting corruption, it would be important to re-enact its Act and remove it completely from the influence of the Executive, with regard to appointment, prosecution of cases, and funding.  

Touching on “galamsey”, Dr Kwakye noted that even though government had implemented a number of strategies and invested quite an amount of capital in dealing with the menace, limited success had been achieved so far.  

He added: “This appears to be due to existence of strong vested interests in the business, involving well-placed individuals and groups.  

“It would take concerted efforts in regulation, community engagement and a strong sanctions regime to bring the menace under control and avoid its potentially disastrous consequences.” 

Other areas in the SONA that IEA Ghana reflected on were Peace and Security, Projects, Taxes, Debt, Macroeconomy, Social Protection, Free Senior High School, Planting for Food and Job, and Minerals. 

ALSO READ:

• Dumsor destroy UPS and several medical equipment at KATH

• Atta Akyea calls on ECG for ‘dumsor’ timetable

• Assurance of stable national power supply by ECG scandalous – IES

This was disclosed at a forum to present the findings of an analysis conducted by the think-tank to the clergy.

Speaking to Joy Business, former Chief Justice, Justice Sophia Akuffo admonished Parliament not to ratify the Lithium agreement.

She explained that the agreement in its current form will short-changed the country, depriving it of the full benefits lithium especially now that the globe is gearing towards green energy.

“It is not acceptable and should not be ratified by Parliament. In other words, Parliament should not accept it on behalf of the people of Ghana because it is not in our interest.”

“All that IEA is saying is that Parliament should not, must not, ought not to ratify this agreement,” she added.

She further called for a paradigm shift in the formulation of policies in the extractive sector, adding, there should be a comprehensive policy which will ensure Ghana benefits the most from its natural resources.

“It’s about all our resources, so that any agreement which will be signed and ratified henceforth must at least have a particular framework which is a far departure from the colonial structure.”

The clergy present, which was made up of the Christian Council of Ghana, Heads of Christian Churches and Associations as well as the Muslim community supported IEA’s call for a petition to be presented to Parliament and other relevant agencies.

The conversation about agreements concerning Ghana’s extractive sector has become imperative since agreements over the years only present the country with meager royalties. 

Also, lithium which is the raw material used in the manufacturing of lithium metal batteries, and lithium-ion batteries which are used in electric vehicles will be crucial in the achievement of a net-zero economy.

Therefore, controlling a chunk of the extraction of lithium will be economically beneficial to Ghana.

ALSO READ:

• Lithium agreement too simplistic – Bright Simons

• Jinapor slams Sophia Akuffo over Lithium deal comment

According to him, the Caucus should be focused on their duties in parliament and allow lawyers for Mr Quayson to challenge the ‘illegality’ of his prosecution in court rather.

“I think it is better for the Minority to challenge the ‘illegality’ of Gyakye-Quayson’s prosecution than to boycott Parliament,” he tweeted.

Dr Kwakye suggested that parliamentarians who have decided to boycott their constitutional duties must be ready to forfeit their salaries.

Minority Leader, who doubles as Ajumako Enyam Essiam MP, Dr Cassiel Ato Forson, on July 4 while welcoming Mr Quayson back to the House after his swearing-in, served a notice they will not participate in proceedings anytime the latter will go to court.

The decision, Dr Forson explained is intended to protest what the Minority perceives as ongoing persecution against their colleague.

So far, the Caucus has boycotted parliamentary sitting twice to support Mr Quayson, Minority Leader, Dr Forson, and Asutifi South MP Collins Dauda in court.

Speaker Alban Bagbin ordered the Minority Caucus to present a written permission letter on days they go to court to solidarise with their colleagues standing trial in order not to be marked absent.

ALSO READ:

• Minority’s parliament boycott: Stop being biased – Ablakwa to critics

• Salaries of MPs who boycott parliament should be deducted – IEA

• NPP parliamentary primaries: Daakye takes lead to pick nomination forms at Akwatia

Speaking at a Press Conference on its findings, the Institute of Economic Affairs (IEA) revealed the financial crisis and its aftermath have weighed down the standard of living of Ghanaians.

READ ON

• Minority to summon Trade Minister over Trade Fair demolition

• Video: Zoe Outreach Embassy Pastor accosted by angry customers again

Research Director for the institute, Dr John Kwakye, said although the factor has been overlooked, many families suffer poverty as a result of the collapse.

“Collapse of some financial institutions have inflicted hardship on investors and their families, therefore when people say there is no money in the system, these are the origins,” he explained.

He is, therefore, charging authorities to put in place more social intervention policies to aid all victims of defunct banks.

Head of the Institute of Economic Affairs (IEA) Jean Mensa has been nominated Chairperson of the Electoral Commission.

It follows the removal of Mrs Charlotte Osei and her two deputies, Amadu Sulley and Mrs Georgina Opoku Amankwaa, for stated misbehavior.

RELATED: Breaking: Akufo-Addo names IEA’s Jean Mensa as new EC Chair

A statement signed by the Chief of Staff Akosua Frema Osei Opare named Mr Samuel Tettey and Dr Eric Asare Bossman as Deputy Chairpersons.

Ms Adwoa Asuama has also been named as a member of the Commission. She replaces Mrs Pauline Dadzawa who has proceeded on retirement.

Her nomination was communicated in a press release on Tuesday.

Mr Samuel Tettey and Dr Eric Bossman Asare have been named as the first and second deputies respectively.

RELATED: President to name new EC Chair this week

Mrs. Jean Adukwei Mensa is currently the Executive Director of the Institute of Economic Affairs (IEA), and Co-ordinator of the Ghana Political Parties Programme.

She is a lawyer by profession, and has carved a niche for herself in the field of policy research and advocacy. She has been involved in the development of policies such as the Presidential Transition Act of 2012; the Revised 1992 Constitution of Ghana (draft); the Political Parties Funding Bill; and the Revised Political Parties Bill. In 2010, she served as a Commissioner of 1992 Constitution.

READ: Fresh application filed to stop EC chair appointment

President Akufo-Addo on June 28, 2018, removed the Chairperson of the Electoral Commission, Charlotte Osei and her two deputies – Amadu Sulley and Georgina Opoku Amankwa from office upon the recommendation of a committee set up by the Chief Justice, to investigate separate complaints brought by some Ghanaian citizens.

Charlotte Osei was accused of various procurement breaches, whilst the deputies were also found guilty of same offenses as well as financial malfeasance.

ALSO: PHOTOS+AUDIO: Midland saga: Customers besiege premises to withdraw monies

Although government spokespersons have justified the move, some members of the opposition have challenged it, saying Madam Charlotte Osei, who was appointed by then President John Mahama, was only hounded out to enable the NPP rig the election in 2020.

Below is the full statement: 

It said government should expedite actions on appointing the independent prosecutor to deal with corrupt public officers.

Dr Eric Osei-Assibey, a Senior Economist IEA, presenting the findings on expectation of Ghanaians on the new government said the citizenry expected government to create more jobs as one of the high priorities while building infrastructure was the least for them.

He said majority of the people considered government to introduce free education but the urban areas prefer more quality education than free.

“The higher the educational level of the people, the higher they think quality education is a priority,” he added.

He said some regions such as Upper East, Upper West and Volta regions expected government to focus more on quality education.

He said the survey revealed that, some Ghanaians expected the government to build more infrastructure, others called for revision or review of the National Health Service Insurance Scheme (NHIS) and improvement on quality health service.

He said the critical issues that government must address were sanitation, improvement of water to various households, ending of “dumsor” and also reduce utility bills.

“People are concern more on the cost of utilities, electricity in particular and expect government to find a way to reduce the cost of these utilities,” he added.

Professor Ransford Gyampo, the Research Fellow at IEA, said government should create the enabling environment for more jobs to be created and accelerate the implementation of its policy on one district one factory and planting for foods and jobs.

He said the rising cost of utility bills has been a burden to the populace, so the government should constitute a body which would investigate, review and improve billing systems in Ghana.

He urged government to review and strengthen the NHIS to deal with all bottlenecks, corrupts practices and inefficiencies that have stalled the smooth running of the scheme.

“In the area of education, government should not compromise on quality while putting measures in place to promote free education at the senior high level,” he added.

He said the priority of some Ghanaians was in the area of fighting against corruption and they expect government to concentrate on investigating corruption and punish public institutions involved.

Mr Justice Emile Short, Senior Fellow at IEA said Ghana was confronted with several socio-economic issues which include the rising cost of utilities, unemployment, limited access to affordable health care, unreliable power supply, crime and corruption.

He said following the release of the 2017 budget the IEA in partnership with the Centre for International Private Enterprise took a survey to investigate and to seek the opinion of the public on the expectations on the new government, he added

The findings of the survey which covers the areas such as the economy, environment, education, health and governance

Mr Short said the result provided is an opportunity to access whether the policy priority of the government was in line with the expectations of Ghanaian people.

“It is the IEA’s hope that the survey findings will guide the new administration’s policy and prioritization process and shape government programme for the year 2017,” he said.

Finance Minister Ken Ofori-Attah announced Thursday in his budget presentation to parliament that the government will initiate processes towards the establishment of the Council that will be responsible for ensuring accountability in implementing optimal fiscal policies.

“Ghana has been faced with significant, long-term fiscal slippages and an escalating public debt stock leading to a high risk of debt distress, due to the fact that the implementation fiscal policy lacks a transparent institutional arrangement for providing quality fiscal information to the public,” Mr Ofori-Attah observed.

The IEA, which undertook a research on how to improve fiscal management in Ghana and proposed the establishment of such Council, said it is pleased that the government has adopted its recommendation.

The research, which was done by Dr Charles Amo-Yartey proposed among other things the establishment of Fiscal Policy Council to promote fiscal discipline, enhance the quality of budget discussions and foster greater transparency in Ghana.

It identified weak fiscal governance as one of the most important factors that could derail Ghana’s ability to advance to high middle income status.

Additionally, the research paper highlighted that breaking the cycle of inconsistent fiscal management requires a balance between market pressure and fiscal rules in order to keep public finances on a sustainable path.

“It is gratifying to note that Mr. Ken Ofori-Atta, the Finance Minister, in his budget statement read on, Thursday, 2nd March, 2017, noted his government’s intention to adopt the IEA’s policy recommendation of establishing a Fiscal Council,” it said in a statement.

The IEA wants the Council to be given a clear mandate, debt sustainability to ensure that it is freed from time inconsistency problem that leads to deficit bias.

“The institute is of the firm belief that should a Council be established, equipped and allowed to operate independently; it would lead to the promotion of sound public financial management in Ghana,” the statement said.

Source: 3news