President Nana Addo Dankwa Akufo-Addo has outlined what he termed firm decisions the government has settled upon to address the current economic difficulties.
This follows a Cabinet Retreat at Peduase Lodge where he indicated government agreed on a framework for the Post COVID-19 Programme for Economic Growth and the IMF support for its implementation, as well as work being done by the Ministry of Finance in preparation for the 2023 budget.
Addressing the state on Sunday, October 30 on the ailing economy in the first of what is expected to be a weekly event, the President expressed confidence these decisions will go a long way to resurrect the economy.
Government, he said, plans to reduce total public debt to GDP ratio to 55% in present value terms by 2028, with the servicing of external debt pegged at not more than 18% of annual revenue also by 2028 to restore and sustain debt sustainability.
He indicated the government is also committed to improving the revenue collection effort, from the current tax-revenue to GDP ratio of 13% to between 18-20%, to be competitive with Ghana’s peers in the West Africa Region.
“Government also aims to restore and sustain macroeconomic stability within the next 3 to 6 years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor.”
“We have decided to review the reforms in the energy sector, capping of statutory funds, implementation of the exemptions Act and a new property rate regime. We have decided also to continue with the policy of 30% cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023, just as we will continue with the 30% cut in discretionary expenditures of Ministries, Departments and Agencies.”
“We are making some progress with the 1D1F but our current situation requires that we take some more stringent measures to discourage the importation of goods that we can and do produce here.
“To this end, we will review the standards required for imports into the country, prioritise the imports, as well as review the management of our foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles, and others.”
“We will support our farmers and domestic industries, including those created under the 1-District-1-Factory initiative, to help reduce our dependence on imports, allow us the opportunity to export more and more of our products, and guarantee a stable currency that will present a high level of predictability for citizens and the business community.”
“Exports, not imports, must be our mantra! Accra, after all, hosts the headquarters of the Secretariat of the African Continental Free Trade Area,” he stated.
President Akufo-Addo indicated that some steps have been taken to restore order in the forex markets and that government will not relent until order is completely restored.
These are: Enhanced supervisory action by the Bank of Ghana in the forex bureau markets and the black market to flush out illegal operators, as well as ensuring that those permitted to operate legally abide by the market rules;
Fresh inflows of dollars to provide liquidity to the foreign exchange market, and address the pipeline demand;
The Bank of Ghana giving its full commitment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilized manner, till the IMF Programme kicks in and the financing assurances expected from other partners also come in;
Government working with the Bank of Ghana and the oil-producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana are, initially, paid to banks domiciled in Ghana to help boost the domestic foreign exchange market; and
The Bank of Ghana enhancing its gold purchase programme.
President Akufo-Addo acknowledged that Ghana’s economy is in great difficulty and indicated there is no example in history when so many malevolent forces have come together at the same time.
“We are in a crisis, I do not exaggerate when I say so. But, as we have shown in other circumstances, we shall turn this crisis into an opportunity to resolve not just the short-term, urgent problems, but the long-term structural problems that have bedevilled our economy,” he stated.
He expressed confidence in the ability of the government to work its way out of the current difficulties.
He said, “We are not afraid of hard work. We will triumph, as we have triumphed many times before.”
“Let us unite, and rally around our Republic, its institutions and its democratic values, and insist that, under God, we will emerge victorious from our current difficulties. For this too shall pass, as the Battle is the Lord’s,” he added.
