A Compliance Desk within the Finance Ministry to monitor and enforce adherence to the newly upgraded Public Financial Management (PFM) Act, 2025, has been established by the Minister for Finance, Dr. Cassiel Ato Forson.
This initiative is designed to address fiscal indiscipline and ensure effective implementation of the upgraded regulations.
Dr. Forson made this announcement during a meeting with the World Bank Africa team, led by Vice President Ousmane Diagana, following the successful National Economic Dialogue, which received strong support from the World Bank.
The Minister emphasized the need to tackle fiscal inefficiencies, particularly among entities awarding contracts without obtaining the necessary commencement certificates, a practice that has resulted in budgetary shortfalls.
A key amendment to the PFM Act now grants the Ministry of Finance the authority to issue commencement authorisations, signaling a shift in fiscal oversight.
To further enhance compliance, the Ministry has established the Compliance Desk, which will monitor and evaluate whether ministries, departments, and other covered entities fully adhere to the new law. The desk will also maintain a Compliance League Table to publicly rank institutions based on their financial regulation adherence.
Dr. Forson warned that persistent non-compliance would result in sanctions, reaffirming the government’s commitment to transparency and accountability in public finance.
“We are determined to ensure that every programme we implement delivers maximum efficiency and impact,” he stated. “This is how we build a disciplined and prosperous Ghana.”
The Government of Ghana is set to introduce a new policy requiring all state agencies to procure certain essential goods exclusively from local producers, in a bold move to boost the country’s industrial sector, create jobs, and reduce dependency on imports.
Finance Minister, Dr. Cassiel Ato Forson, announced the initiative during a meeting with the leadership of the Association of Ghana Industries (AGI), stressing that no country can truly develop without a strong industrial base.
He revealed that the government will soon publish a list of essential items that all public sector agencies will be required to source locally.
“To support our local industries, the government will soon publish a list of items that all public sector agencies must procure locally. This will ensure that government procurement serves as a tool to develop our industries. Going forward, any government procurement from outside Ghana will require special approval from the Office of the President,” he stated.
The President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, lauded the government’s initiative, describing it as a timely intervention that would revitalise the Ghanaian industrial sector. He pledged AGI’s readiness to collaborate closely with the government to ensure the success of the policy.
The upcoming policy forms part of broader government efforts to restructure the economy, strengthen the manufacturing sector, and achieve sustainable economic growth.
The Finance Minister further hinted at the establishment of a Local Content Compliance Unit within the Ministry of Finance. This unit, he said, will be responsible for monitoring and ensuring that ministries, departments, and agencies adhere strictly to the new local procurement policy.
He urged local manufacturers to ramp up production quality and capacity to meet the expected surge in demand, assuring them of government support through incentives, access to finance, and improved infrastructure.
Dr. Forson also underscored the urgent need to tackle smuggling, which he said is crippling local businesses. He explained that the government has identified key smuggling routes and will deploy a combined strategy involving enhanced border security, stricter enforcement, and collaboration with neighbouring countries to curb the menace.
Finance Minister Dr. Cassiel Ato Forson has succinctly celebrated the abolition of the Electronic Transfer Levy (E-Levy) and other taxes, tweeting “It is finished” after President John Dramani Mahama signed the repeal bill into law.
This move marks a significant milestone in the government’s efforts to ease the financial burden on Ghanaians and foster economic growth.
The repealed taxes include the betting tax, emissions tax, and other levies. The E-Levy, introduced in 2022, had imposed a 1.5% tax on electronic transactions, sparking widespread criticism from the public and business community. Many argued that it stifled digital transactions and placed an unnecessary burden on citizens.
The removal of these taxes was a core pledge in the National Democratic Congress (NDC)’s manifesto, aimed at reducing the cost of living and encouraging business expansion. With the repeal bill now signed into law, many Ghanaians are celebrating the move as a step towards financial relief.
Supporters of the repeal argue that eliminating these levies will promote digital transactions, stimulate economic activity, and improve disposable income for households and businesses. The Finance Minister’s tweet suggests that the government is committed to fulfilling its campaign promises and easing the financial burden on citizens.
Finance Minister Dr. Cassiel Ato Forson has pledged to secure financial support from the Ghana Education Trust Fund (GETFund) to address teacher accommodation shortages at Swedru Secondary School (Swesco).
Speaking as the guest of honour at the school’s 66th-anniversary celebration on Saturday, March 22, Dr. Forson acknowledged the dire need for improved housing for teachers. He assured the school’s leadership that he would push for GETFund intervention to resolve the challenge.
“One of the challenges I observed here, and the headmistress also confirmed, is accommodation for teachers. Headmistress, I have heard your concern, I will talk to GETFund to complete the teacher accommodation,” he stated.
Beyond addressing housing concerns, Dr. Forson also committed to enhancing healthcare facilities at Swesco. He announced his personal decision to fund the refurbishment of the school’s infirmary, promising to provide essential medical supplies and beds to improve student healthcare.
“Headmistress, the school’s infirmary—I will personally support its completion. I will also provide beds and other medical equipment,” he assured.
Encouraging students to stay committed to their studies, Dr. Forson emphasized the role of education in shaping their future, urging them to strive for academic excellence and contribute positively to society.
Finance Minister Dr. Cassiel Ato Forson has refuted claims circulating on social media that he approved a $1.7 million single-source procurement contract for the Ministry of Finance.
In a Facebook post, Dr. Ato Forson described the allegation as false and urged the public to disregard it.
“My attention has been drawn to yet another baseless and misleading claim circulating about an alleged $1.7 million single-source procurement contract approved by me. This claim is completely false and should be disregarded,” he stated.
The Minister emphasized that since assuming office, he has not authorized any procurement, reaffirming his commitment to transparency and responsible economic management.
Similarly, the Public Procurement Authority (PPA) has distanced itself from the alleged approval, stating that it has not granted any such clearance to the Ministry of Finance.
“It has come to the attention of the PPA that a letter circulating on social media purports to grant single-source approvals to the Ministry of Finance for the engagement of Ostec Limited in respect of the implementation of Middleware and Oracle Business Intelligence Enterprise Edition with data warehouse.
The Authority would like to clarify that it has not granted any such approvals. We therefore entreat the general public to ignore the said letters in circulation,” the PPA stated.
The allegations have sparked public discussions on government procurement processes. However, with both the Finance Minister and the PPA denying any involvement, the claims remain unverified.
Ghana’s economic recovery will demand sacrifices, discipline, and honesty from all stakeholders, Finance Minister Dr. Cassiel Ato Forson has said.
Presenting the 2025 Budget Statement to Parliament on Tuesday, he acknowledged the deep financial challenges facing the country but assured that the government is committed to taking bold measures to turn things around.
Dr. Forson stressed that restoring stability requires a responsible approach, starting with the government itself. He maintained that truthfulness and transparency would be central to the administration’s efforts to rebuild the economy.
“Rt. Honorable Speaker, it is what it is. The state of our economy is troubling, but we will fix it. We will fix it, but Mr. Speaker, it will require some sacrifices, truthfulness, transparency, and discipline. We will take strong measures to confront the situation head-on. The sacrifice must come from all stakeholders, beginning with the government,” he stated.
He blamed the country’s economic distress on excessive debt, financial sector obligations, and what he described as reckless spending by the previous New Patriotic Party (NPP) administration. He argued that these factors had derailed fiscal consolidation efforts, even under the International Monetary Fund (IMF) programme introduced in 2023.
“Mr. Speaker, hands on heart, we inherited an economy in deep crisis. Mr. Speaker, an economy hit with debt… and financial sector payments. Re-commitment control and reckless spending have reversed the progress made in fiscal consolidation even under the IMF programme that commenced in the year 2023,” he said.
Despite efforts to stabilize the economy through the IMF-backed programme, Dr. Forson admitted that the nation remains in financial distress. He noted that while some progress had been made, the burden of economic mismanagement continues to weigh heavily on Ghanaians, especially domestic bondholders, external creditors, and taxpayers.
“Mr. Speaker, notwithstanding the gains made under the IMF-supported programme that was to be achieved through the painful sacrifice of domestic bondholders, external creditors, and taxpayers, the economy remains in distress,” he added.
Ghana’s economic landscape entering 2025 has been a mix of progress and persistent challenges. The cedi, which struggled against major trading currencies in 2024, recorded a 2.06% depreciation against the US dollar, British pound, and euro in January, according to the Bank of Ghana. This marked an improvement compared to December 2024, when the cedi depreciated by 19.2% against the dollar, 17.8% against the pound, and 13.7% against the euro.
Inflation has also shown a slight decline, dropping to 23.1% in February 2025 from 23.5% in January. However, the rate remains well above the central bank’s target range of 6% to 10%.
As part of the government’s broader economic plan, several key macroeconomic targets have been set for the 2025 fiscal year. The government aims to achieve a real GDP growth rate of at least 4.0%, with non-oil real GDP growth projected at 4.8%.
Inflation is expected to drop further to 11.9% by the end of the year. Additionally, the government is targeting a primary balance surplus of 1.5% of GDP, while maintaining gross international reserves sufficient to cover at least three months of imports.
Dr. Forson assured Parliament and the public that with the right policies and a commitment to responsible governance, the government is determined to navigate Ghana out of its current economic turmoil.
Ghana’s cocoa industry has experienced a sharp decline, with production dropping by 50% over the past three years, raising concerns about the country’s economic stability and export commitments.
Finance Minister Dr. Cassiel Ato Forson made this revelation while presenting the 2025 Budget Statement to Parliament on March 11. He highlighted the challenges facing the sector, particularly its inability to meet international supply demands.
Dr. Forson disclosed that during the 2023/2024 crop season, the Ghana Cocoa Board (COCOBOD) was unable to deliver 330,000 tonnes of cocoa required to fulfill contractual agreements.
“This under-supply has been rolled over for subsequent supply by the new administration,” he stated, emphasizing the impact of the production shortfall on Ghana’s export commitments.
He further stressed the need for urgent policy interventions to revive the sector, noting that cocoa remains a pillar of Ghana’s economy.
“Cocoa production has dropped by nearly 50% over the past three years,” he told Parliament, acknowledging the mounting concerns of industry stakeholders.
To address the crisis, Dr. Forson assured lawmakers that the government is committed to implementing strategies aimed at boosting productivity and ensuring the stability of cocoa exports.
Finance Minister Cassiel Ato Forson has pledged that the ruling National Democratic Congress (NDC) government will fix the “economic crisis” inherited from the Akufo-Addo administration.
Presenting the much-anticipated 2025 Budget Statement to Parliament on Tuesday, Dr. Forson revealed that the Mahama administration has already initiated bold measures to restore Ghana’s economy.
He emphasized that the government will tackle the crisis with a commitment to sacrifice, discipline, and transparency, ensuring a responsible approach to economic recovery.
Dr. Forson assured that the revitalization efforts will begin within the government, with all stakeholders playing a role in rebuilding the nation’s financial stability.
“RT Honorable Speaker it is what it is, the state of our economy is troubling but we will fix it.We will fix it but Mr Speaker it will require some sacrifices, truthfulness, transparency and discipline. We will take strong measures to confront the situation head on. The sacrifice must come from all stakeholders beginning with the government.
According to him, the economy is in a dire state due to excessive debt, financial sector obligations, and unchecked expenditures by the opposition New Patriotic Party (NPP).
“Mr Speaker hands on heart we inherited an economy in deep crisis, Mr Speaker, an economy had hit with debt,.. and financial sector payments. Re-commitment control and reckless spending have reversed the progress made in physical consolidation even under the IMF programme that commenced in the year 2023.
Despite the measures introduced under the IMF-supported programme, the Finance Minister noted that economic distress persists. He attributed this to the heavy sacrifices made by domestic bondholders, external creditors, and taxpayers, emphasizing that the nation is still grappling with the consequences of past mismanagement.
“Mr Speaker notwithstanding the gains made under the IMF supported programme that was to achieve through the painful sacrifice of Domestic Bondholders external creditors and taxpayers the economy remains in distress,” he added.
Finance Minister Dr. Cassiel Ato Forson presented the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025. This budget marks the first comprehensive financial roadmap under President John Dramani Mahama’s administration.
Dr. Forson outlined bold policy measures aimed at stabilizing the economy, fostering growth, and addressing the nation’s fiscal challenges.
The presentation was made in accordance with Article 179 of the 1992 Constitution and Section 21 (3) of the Public Financial Management Act, 2016 (Act 921).
Minister of Finance Dr. Cassiel Ato Baah Forson is set to present the Budget Statement and Economic Policy of the government for the year to Parliament tomorrow, Tuesday, March 11.
The presentation, in accordance with Article 179 of the 1992 Constitution, was announced last Friday by Deputy Majority Leader Kweku Ricketts-Hagan during the presentation of the Business Statement for the ninth week, ending Friday, March 14.
“Mr. Speaker, the minister responsible for finance, on the authority of the President of the Republic, will present to this House the Budget Statement and Economic Policy of the Government of Ghana for the year ending December 31, 2025, in accordance with Article 179 of the 1992 Constitution, tomorrow, Tuesday, March 11, 2025,” he stated.
He urged Members of Parliament (MPs) to take note of the date and ensure their attendance.
Additionally, Mr. Ricketts-Hagan, the National Democratic Congress (NDC) MP for Cape Coast South, emphasized the need for the Ministry of Finance, along with other ministries and agencies, to promptly submit their sectoral estimates to Parliament for review and approval.
“Mr. Speaker, in view of the presentation of the budget, a post-budget workshop will be scheduled for the participation of all MPs. The venue and time will be communicated in due course,” the Deputy Majority Leader stated.
The budget is expected to provide a detailed assessment of the economy and outline policy measures aimed at steering Ghana’s economic transformation in line with President John Dramani Mahama’s vision.
Speaking to the media after the government’s first Cabinet meeting held last week Friday, Minister for Government Communications Felix Kwakye Ofosu disclosed that the policies to be included in the budget are based on recommendations from the National Economic Dialogue held on March 3 and 4.
Mr. Kwakye Ofosu further indicated that the initial Cabinet meeting primarily focused on setting key performance benchmarks for ministers. Discussions also covered security briefings, the roadmap for the 24-hour economy initiative, strategies for agricultural transformation, and an assessment of the current economic landscape.
Ahead of the budget presentation, there have been calls for the removal of draconian taxes that are impeding business growth.
According to the business statement for the upcoming week, 30 questions have been scheduled for responses from seven ministers appearing before Parliament. Out of these, 29 will be oral questions, while one has been categorized as urgent.
The ministers expected to appear before the House include those responsible for Energy and Green Transition; Local Government, Chieftaincy, and Religious Affairs; Gender, Children, and Social Protection; Lands and Natural Resources; Health; Foreign Affairs; and Roads and Highways.
Additionally, the Government Statistician will engage Members of Parliament on Ghana’s statistical products, with a focus on digital platforms.
Finance Minister Dr. Cassiel Ato Baah Forson is set to present the government’s Business Statement and Economic Policy for the 2025 fiscal year to Parliament on Tuesday, March 11.
His presentation, mandated by Article 179 of the 1992 Constitution, will outline key economic plans and strategies for the year ending December 31, 2025.
The announcement was made on Friday by Deputy Majority Leader Kweku Ricketts-Hagan while presenting the Business Statement for the ninth week, which runs until Friday, March 14.
“Mr Speaker, the minister responsible for finance on the authority of the President of the republic would present to this house the budget statement and economic policy of the government of Ghana for the year ending December 31, 2025, in accordance with Article 179 of the 1992 constitution on Tuesday March 11, 2025,” he said.
He urged Members of Parliament (MPs) to take note and be present in the House on the said date.
Mr Ricketts-Hagan, also the National Democratic Congress (NDC) MP for Cape Coast South, also urged the ministry of finance and other ministries as well as bodies to submit their sectoral estimates to Parliament on time for the consideration and approval of the House.
“Mr Speaker, in view of the presentation of the budget, a post-budget workshop will be scheduled for the participation of all MPs.
“The venue and time will be communicated in due course,” the Deputy Majority told the House.
The upcoming budget is expected to present a comprehensive analysis of Ghana’s economy and outline key policy measures aimed at driving economic transformation in line with President John Dramani Mahama’s vision.
Speaking to the media after the government’s first Cabinet meeting, Minister for Government Communications, Felix Kwakye Ofosu, emphasized that the budget’s proposals will be shaped by insights gathered from the National Economic Dialogue held on March 3 and 4, 2025.
“The Presidential Advisor on the 24-hour Economy, Mr Gossie Tandoh, proceeded with preparations for the full rollout of President Mahama’s primary policy to transform Ghana.
“The Finance Minister, Dr Cassiel Ato Forson, also informed the Cabinet that the economic situation is dire. The figures are even worse than we had known before the elections,” he said.
Felix Kwakye Ofosu revealed that the first Cabinet meeting primarily focused on setting performance benchmarks for ministers. Discussions covered key areas such as national security, the implementation strategy for the 24-hour economy policy, agricultural transformation, and the overall state of the economy.
According to the Business Statement for the upcoming parliamentary week, seven ministers are scheduled to appear before the House to respond to 30 questions. Of these, 29 will be oral, while one will require an urgent response.
Ministers expected to engage Parliament include those responsible for Energy and Green Transition; Local Government, Chieftaincy, and Religious Affairs; Gender, Children, and Social Protection; Lands and Natural Resources; Health; Foreign Affairs; and Roads and Highways.
Additionally, a Committee of the Whole Meeting has been scheduled to allow the Government Statistician to brief MPs on Ghana’s statistical products, with a focus on digital platforms.
Finance Minister Dr. Cassiel Ato Forson on March 7 wrapped up a meaningful discussion with market women, head porters (kayayei), and traders at Makola Market.
The engagement allowed him to hear firsthand their concerns and expectations ahead of the 2025 Budget presentation scheduled for Tuesday, March 11.
Expressing appreciation for the interaction, Dr. Forson described it as a privilege, recognizing the crucial contribution of these hardworking individuals to Ghana’s economic growth.
“It was a privilege to interact with these hardworking Ghanaians who break their backs daily to support our economy,” he stated, highlighting their contributions to the country’s commercial sector.
Friends,
We Just concluded an insightful engagement with market women, kayayei, and others at Makola Market.
It was a privilege to interact with these hardworking Ghanaians who break their backs daily to support our economy.
— Cassiel Ato Forson(PhD) (@Cassielforson) March 8, 2025
The conversation focused on the economic difficulties facing small-scale traders, such as rising inflation, taxation burdens, and limited access to credit.
Dr. Forson assured them that their concerns would play a key role in shaping policies for the upcoming budget, emphasizing that their insights are essential in guiding the nation’s economic strategy.
“Their expectationsahead of Budget 2025 will help shape our shared future,” he affirmed.
Finance Minister Dr. Cassiel Ato Forson has cautioned that Ghana’s economic challenges are far from over, stressing the need for tough decisions to secure long-term stability.
Addressing participants at the National Economic Dialogue on March 3 at the Accra International Conference Centre, he outlined the hardships Ghanaians have endured, including severe currency depreciation, hyperinflation, steep tax hikes, and rising costs of fuel, electricity, and interest rates.
“Fellow countrymen and women, the economic crisis is not over. We still have difficult decisions to make to ensure long-term stability,” he stated.
The two-day forum is aimed at diagnosing the country’s economic difficulties and developing sustainable solutions.
President John Dramani Mahama is set to deliver the keynote address on the theme “Resetting Ghana: Building the Economy We Want Together.” The dialogue is part of a broader strategy to engage citizens in shaping policies and fostering collaboration among key stakeholders.
The event has brought together representatives from the private sector, academia, civil society organizations, and public policy institutions. Discussions are expected to focus on macroeconomic stability, economic transformation, infrastructure development, structural reforms, private sector growth, governance, and anti-corruption measures.
Participants are expected to propose actionable steps that will drive economic recovery and resilience in the long term.
Finance Minister,Dr. Cassiel Ato Forson, is set to present his inaugural budget to Parliament on Tuesday, March 11, 2025.
This budget will provide an overview of the economy and propose policies aimed at realigning and transforming Ghana’s economic path in line with President John Mahama’s vision.
During a media briefing after the government’s first Cabinet meeting, Minister for Government Communications, Felix Kwakye Ofosu, announced the presentation.
He mentioned that the budget’s policies would be influenced by recommendations from the National Economic Dialogue, which is scheduled for March 3 and 4, 2025.
“The Presidential Advisor on the 24-hour Economy, Mr. Gossie Tandoh, has proceeded with preparations for the full rollout of President Mahama’s primary policy to transform Ghana,” Kwakye Ofosu noted.
He further mentioned that Dr. Ato Forson briefed the Cabinet on the economy’s dire state, which has worsened since the pre-election assessments.
The inaugural Cabinet meeting primarily concentrated on establishing performance benchmarks for ministers. It also included discussions on security updates, the implementation plan for the 24-hour economy policy, the agricultural transformation strategy, and the current economic situation.
Economist Dr. Priscilla Twumasi Baffour has urged the government to reconsider its pledge to abolish certain taxes if doing so would threaten Ghana’s economic stability.
Speaking on Joy News’ PM Express Business Edition on Thursday, February 13, she emphasized that while tax cuts may be politically attractive, they must be weighed against the country’s fiscal health to prevent further economic distress.
“It’s a difficult period, and I believe that there is nothing wrong if the government, I mean, the finance minister, comes out to say that we promised X, Y, and Z, but this is the reality—it is not possible,” she stated.
Dr. Baffour cautioned that hastily eliminating multiple taxes without a clear plan to compensate for lost revenue could push the economy into deeper instability. She warned that such a move could have dire consequences for businesses and individuals alike.
“The risk to businesses and Ghanaians as a whole is that if the trajectory that the economy is currently on switches and we enter into another phase of turbulence, it will be quite disastrous for everybody. It affects people in terms of standards of living. Fixed-income earners really struggle with high inflation and all that,” she explained.
Acknowledging the political implications of maintaining taxes, Dr. Baffour stressed that economic stability should take precedence. She advised that the government has the flexibility to adjust its stance in light of economic realities.
“Initially, it would mean some political cost, but I think that the government has a lot of room at the moment, and it should not be hasty in taking out all the taxes that it promised to remove if indeed it’s very difficult to make up for it,” she advised.
Reflecting on past policies, she noted that the government’s previous attempts to shift focus from taxation to production by scrapping so-called “nuisance taxes” were well-intended but did not yield immediate economic growth.
“The whole idea of, for example, taking out a lot of taxes, nuisance taxes as we heard some time ago, is the fact that you want to de-emphasize taxation and look at production. But the reality is that in our context, growth is quite difficult. It takes quite some time to be able to observe a given substantial level of growth,” she remarked.
Her remarks come as the government faces pressure to fulfill campaign promises on tax relief while simultaneously managing economic recovery from high debt, inflation, and revenue shortfalls. Dr. Baffour’s perspective serves as a reminder that maintaining a stable economic environment should take precedence over short-term political gains.
Economist Dr. Priscilla Twumasi Baffour has cautioned the government against hastily eliminating taxes it pledged to scrap if such actions could undermine national revenue.
Speaking on Joy News’ PM Express Business Edition on Thursday, February 13, she emphasized that while tax cuts may be politically popular, economic considerations should take priority to prevent further strain on Ghana’s already fragile fiscal position.
“It’s a difficult period, and I believe that there is nothing wrong if the government, I mean, the finance minister, comes out to say that we promised X, Y, and Z, but this is the reality—it is not possible,” she stated.
According to her, the government still enjoys goodwill from Ghanaians, and instead of hastily scrapping multiple taxes, it should focus on what is economically practical.
Dr Baffour cautioned that if the economy’s current trajectory shifts into further instability due to revenue shortfalls, the consequences would be disastrous.
“The risk to businesses and Ghanaians as a whole is that if the trajectory that the economy is currently on switches and we enter into another phase of turbulence, it will be quite disastrous for everybody.
“It affects people in terms of standards of living. Fixed-income earners really struggle with high inflation and all that,” she explained.
She acknowledged that keeping some of the taxes in place might come at a political cost, but stressed that economic stability must be the priority.
“Initially, it would mean some political cost, but I think that the government has a lot of room at the moment, and it should not be hasty in taking out all the taxes that it promised to remove if indeed it’s very difficult to make up for it,” she advised.
Referencing past policies, Dr Baffour noted that the motivation behind removing what were once called “nuisance taxes” was to shift focus from taxation to production.
However, she pointed out that economic growth in Ghana takes time and cannot immediately compensate for lost tax revenue.
“The whole idea of, for example, taking out a lot of taxes, nuisance taxes as we heard some time ago, is the fact that you want to de-emphasize taxation and look at production.
“But the reality is that in our context, growth is quite difficult. It takes quite some time to be able to observe a given substantial level of growth,” she remarked.
Her remarks come amid mounting pressure on the government to deliver on its campaign pledge of tax cuts while navigating the challenges of economic recovery. The country continues to grapple with the effects of high debt, inflation, and revenue deficits.
Dr. Baffour’swarning underscores the need for a balanced approach—while tax reductions may offer short-term relief to businesses and individuals, the overarching priority should be fostering a stable and resilient economy.
Finance Minister Dr. Cassiel Ato Baah Forson has urged the Ghana Revenue Authority (GRA) to surpass its revenue targets to help reduce the government’s reliance on borrowing.
Speaking during a visit to the GRA as part of a series of engagements aimed at addressing key revenue and public expenditure issues, Dr. Forson emphasized the importance of domestic resource mobilization in light of limited access to international borrowing markets.
“Without revenue, there’s little you can do,” Dr. Forson remarked. He pointed out that Ghana currently has no access to Eurobond markets, domestic bonds, or commercial bank loans, leaving Treasury bills and multilateral loans as the only available financing options. “This means we have to focus more on domestic resource mobilization rather than borrowing externally,” he stressed.
While acknowledging the GRA’s success in exceeding its 2024 revenue target by raising GH₵153.5 billion—GH₵7.5 billion above the initial target—Dr. Forson urged the agency to set even higher goals for 2025. “Achieving your target will not be enough; you have to exceed it so that we can reduce borrowing. The space to borrow is simply not there,” he said.
The GRA’s performance in 2024, which saw a 5.3% increase in revenue compared to the target, reflects a nominal growth of 35% from 2023. Additionally, with the introduction of levies such as the Sanitation Debt Recovery Levy and Energy Sector Debt, total revenue collection reached GH₵157.9 billion.
As part of Ghana’s fiscal consolidation efforts under the International Monetary Fund (IMF) program, Dr. Forson reminded the GRA that they are obligated to raise additional tax revenue equivalent to 0.6% of the GDP.
“This agreement is between the government of Ghana and the IMF, not political parties, so we are obligated to meet this target. I urge you to find innovative ways to achieve this,” he added.
The Acting Commissioner General of the GRA, Anthony Kwasi Sarpong, responded by emphasizing the importance of teamwork in achieving the agency’s targets. “I may have two hands and one head, but together with the entire GRA team, we can overcome any challenges,” Mr. Sarpong said, reaffirming the institution’s commitment to revenue generation.
In a separate meeting with the Controller and Accountant General’s Department (CAGD), Dr. Forson discussed the need for expenditure quality in managing public funds. He explained that while the Ministry of Finance sets expenditure priorities, the CAGD must ensure compliance with the law.
“Your role is to ensure that whatever we direct you to pay is carefully reviewed. If it aligns with the law, proceed with payment. But the quality of expenditure is the prerogative of the Ministry of Finance,” Dr. Forson stated.
The Controller and Accountant General, Kwasi Agyei, expressed appreciation for Dr. Forson’s leadership and reiterated the CAGD’s commitment to transparency.
“Our mandate, as outlined in the Public Financial Management (PFM) Act, is to ensure transparency in transactions and proper management of funds,” he said.
However, Mr. Agyei also acknowledged the need for further system upgrades to maintain public trust, which he stressed is critical to the success of Ghana’s financial management. “Declining public trust in the management of public funds is a growing concern across Africa. While Ghana has not yet reached a critical point, we must act now to sustain confidence in our financial systems,” he warned.
Ghana’s Gross International Reserves (GIR) saw an increase, climbing from $7.83 billion in September 2024 to $7.92 billion in November, according to data released by the Bank of Ghana (BoG).
The BoG highlighted that from January to the end of September 2024, the country managed to accumulate reserves amounting to $1.91 billion. This brought the reserves to $7.83 billion, equivalent to 3.5 months of import cover, and further growth pushed the figure to $7.92 billion by November.
The Bank noted that this significant growth in reserves has strengthened Ghana’s external financial position considerably in 2024. The announcement followed the 121st regular meeting of the Monetary Policy Committee (MPC).
But on its website, the Finance Ministry, in an article dated December 4, reported Ghana’s external reserves improved to $7.7 billion in November. This information was announced by Dr. Mohammed Amin Adam at a Monthly Press briefing where he highlighted Ghana’s restored macroeconomic stability and accelerated growth.
According to the Bank of Ghana (BoG), the improved external position was supported by a higher current account surplus and a reduction in net financial outflows, leading to a strong external reserves build-up.
“The current account surplus increased to $2.2 billion in the first nine months of the year, compared with a surplus of $912 million over the corresponding period in 2023,” the Central Bank revealed.
It said the strong current account surplus was supported by increased gold and crude oil exports as well as robust remittance inflows.
“This development, together with a lower net outflow of $414 million in the capital and financial account (relative to a net outflow of $1.4 billion in 2023), contributed to an improved balance of payments position in the first three quarters of the year,” the statement indicated.
Gold exports significantly contributed to this total, with a value of $9,551.1 million, maintaining its position as the country’s top export earner. Cocoa exports also demonstrated resilience, with October 2024 figures amounting to $1,150.8 million.
Similarly, oil exports were robust, standing at $3,331.3 million, driven by higher global oil prices and consistent production levels. Other exports, encompassing non-traditional goods, reached $2,450.1 million in October.
The Minister of Finance, Dr. Mohammed Amin Adam, has attributed delays in finalizing the debt restructuring agreement with some Independent Power Producers (IPPs) to the ongoing parliamentary impasse.
Speaking during the Finance Ministry’s monthly economic briefing, Dr. Amin Adam explained that while three IPPs—AKSA, Asogli, and Zenit—have either signed or are close to signing agreements, the process has stalled for Cen Power and Amandi. He noted that these agreements require parliamentary approval to proceed.
“We concluded negotiations with the Independent Power Producers and some of them have signed off. For example, AKSA has signed off, and Asogli and Zenit are also about to sign off. What is outstanding is the one with Cen Power and Amandi because those two PPAs are required to go to parliament for parliamentary approval,” he said.
Parliament was adjourned indefinitely following a Majority-led suit challenging the Speaker’s decision to declare four seats vacant, effectively halting legislative activities. Dr. Amin Adam expressed concern over the impasse, stating, “We all know the story with parliament. Until parliament returns and approves those two PPAs, they will remain outstanding.”
Despite the challenges, the Minister emphasized that the government has fulfilled its commitments to the IPPs. “Meanwhile, for government, we have met our side of the obligation,” he stressed. “We have done everything, we haven’t missed a dollar. While we wait for parliament to approve those restructuring PPAs, I can say that we have been very religious with our side of the bargain,” he added.
The agreements with the IPPs are critical to averting potential power shutdowns, as some producers had earlier threatened to halt operations over unpaid debts. However, the unresolved parliamentary situation continues to hinder the process, raising concerns about the timely resolution of the restructuring efforts.
Meanwhile, Parliament will resume on December 16, after the elections to address critical matters and ensure a seamless transition to the 9th Parliament of the Fourth Republic.
This initiative was designed to eliminate financial barriers to secondary education, benefiting over 5.7 million students in public schools and aiming to build a skilled workforce to support national industries.
Speaking at the 13th AGI Ghana Industry and Quality Awards in Accra, Finance Minister Dr. Mohammed Amin Adam highlighted that the substantial investment in education is expected to yield significant long-term benefits for the nation.
“The spending on the free SHS is not by accident but by international means because the 5.7 million Ghanaian children will bring returns one day. The skills these young people have acquired will bring huge returns into the economy in the near future,” he added.
The Association of Ghana Industries (AGI) instituted the annual AGI Ghana Industry and Quality Awards to reward companies and industries in different areas of business performance.
This year’s event was held on the theme “Navigating the uncertainties of our business landscape to sustain productivity.”
It was organised in partnership with the Ghana Standards Authority (GSA) with support from other corporate entities.
A total of eight categories and 23 sector awards were given to companies excelling in industry and innovation over the past year. Nestlé Ghana Ltd. was honoured as the Overall Best Industrial Company of the Year.
Among the other notable winners were Petrosol Platinum Energy Ltd, Softcare FM Manufacturing Company, Pioneer Business Investment Services, Enterprise Computing Ltd, Sesa Recycling Ltd, Ahodwo Farms, and Crocodile Matchets Ltd.
Finance Minister Dr. Mohammed Amin Adam has announced that the government has withdrawn Ghana Revenue Authority (GRA) officials allegedly harassing businesses as part of efforts to improve the investment climate in Ghana.
This move follows concerns raised by members of the French business community regarding undue pressure from tax collectors.
Addressing the French Chamber of Commerce at the Annual Cocktail event and the launch of the France-Ghana Economic Report 2023-2024, held at the French Ambassador’s residence in Accra, Dr. Amin Adam reassured French businesses of the government’s commitment to addressing their concerns and fostering a more favorable business environment.
“I want to appeal to you to continue to stay in Ghana because we are addressing all the issues that you have raised with me,” he said, noting that actions had been taken to withdraw GRA officials accused of harassing businesses.
“Issues relating to taxes and harassment of businesses by tax collectors, you will notice, have been resolved. We’ve had to withdraw all the tax collectors who were allegedly harassing businesses from those centres of operation, and so you won’t see them anymore,” he added.
The GRA has faced repeated criticism for what some perceive as aggressive tax collection tactics. In March, New Patriotic Party Flagbearer Dr. Mahamudu Bawumia expressed concern that GRA’s high targets for tax officers lead to harassment of businesses.
“They are harassing businesses. That harassment is coming from the sort of targets that are created at their office. They are setting unrealistic targets… so you come up with all sorts of stuff,” Dr. Bawumia said.
Echoing similar sentiments, Alhassan Andani, former Chief Executive Officer of Stanbic Bank, recently likened the GRA’s approach to “a terrorist organization,” claiming the authority’s tactics often put undue pressure on businesses.
“I know a number of organizations, when GRA gets into their space, it’s as if they deliberately do it to wriggle people’s arms to take money,” he remarked.
Businesses in Ghana are currently grappling with high inflation, cedi depreciation, and multiple tax obligations, which continue to strain their operations. The GRA, tasked with ensuring compliance with tax laws, is under pressure to secure a stable revenue flow for the government amid these economic challenges.
Finance Minister Dr. Mohammed Amin Adam has acknowledged that some French businesses operating in Ghana have experienced undue harassment from Ghana Revenue Authority (GRA) officials.
Speaking at the Annual Cocktail event with the French business community and the launch of the France-Ghana Economic Report 2023-2024, held at the French Ambassador’s residence in Accra, Dr. Amin Adam reassured the French Chamber of Commerce members that the government is working to resolve concerns surrounding the business climate in Ghana.
He emphasized that recent steps have been implemented to ease the pressure on foreign investors.
“I want to appeal to you to continue to stay in Ghana because we are addressing all the issues that you have raised with me,” Dr. Amin Adam said. He specifically addressed concerns over tax-related challenges, assuring attendees that action had been taken to withdraw GRA officials accused of harassing businesses.
“Issues relating to taxes and harassment of businesses by tax collectors, you will notice, have been resolved. We’ve had to withdraw all the tax collectors who were allegedly harassing businesses from those centres of operation, and so you won’t see them anymore,” he added.
The Finance Minister’s remarks aimed to reassure the French business community, highlighting that the government is dedicated to fostering a business-friendly environment and remains committed to sustaining foreign investments in Ghana.
Finance Minister Dr. Mohammed Amin Adam has provided assurance to businesses and market stakeholders, emphasizing that the Bank of Ghana (BoG) possesses ample dollar reserves to satisfy market needs.
“We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand,” Dr Amin Adam stated.
He said this during a press briefing in Washington, D.C., held alongside the Annual IMF and World Bank meetings.
“I can tell you that the Bank of Ghana has accumulated significant reserves to meet the demand,” he added.
Bank of Ghana figures show that Ghana’s international reserves climbed to $7.5 billion as of the close of August 2024.
Expected Inflows
The finance minister revealed that Ghana anticipates a December inflow of $360 million from the IMF, pending approval of the third program review.
“That should bring in some foreign exchange,” he noted.
Additionally, the World Bank is expected to disburse $300 million to Ghana under its Development Policy Operations (DPO) Series, further bolstering the country’s foreign currency reserves.
“In addition to what the Bank of Ghana already has, these expected inflows should help in stabilising the cedi going forward,” Dr Amin Adam remarked, addressing concerns about recent fluctuations in forex markets.
The assurance comes at a time when some forex bureaus are reportedly selling the dollar above GHS17, despite data provided to the Bank of Ghana showing transactions under GHS16.
Pressure on the Cedi: Contributing Factors
The Ghanaian cedi has faced mounting pressure over the past month, following a period of relative stability.
Market analysts attribute this volatility to a spike in dollar demand, as businesses prepare to finance imports ahead of the Christmas season.
Some commercial banks report that businesses are also rushing to restock for next year, fearing a depreciation of the cedi in the coming months.
Additional market pressures stem from speculation and concerns surrounding the upcoming December elections, which have increased demand for foreign currency, as well as the activities of speculators aiming to capitalise on uncertainties.
Bank of Ghana’s Role and Measures
The Bank of Ghana has actively intervened in the market to meet dollar demand, selling foreign currency through its dollar auction program.
It has specifically targeted Bulk Oil Distribution Firms and conducted weekly auctions for commercial banks to ensure a steady supply.
Furthermore, the Central Bank has implemented additional measures to stabilise the cedi, which it describes as part of a broader strategy to manage market uncertainty and minimise the negative impact on the currency’s value.
The Finance Minister, Dr. Mohammed Amin Adam, has assured businesses and market stakeholders that the Bank of Ghana (BoG) has accumulated significant dollar reserves to meet market demand.
Speaking at a press briefing in Washington, D.C. during the Annual IMF and World Bank meetings, Dr. Amin Adam emphasized that the current reserve levels should reassure those concerned about foreign exchange availability.
“We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand,” he stated. By the end of August 2024, Ghana’s international reserves reached $7.5 billion, according to BoG data.
Dr. Amin Adam also highlighted expected inflows that could further stabilize the cedi. Ghana anticipates a $360 million disbursement from the IMF in December, pending the approval of the third program review. Additionally, a $300 million disbursement from the World Bank under its Development Policy Operations (DPO) Series is expected, further boosting foreign currency reserves.
“These expected inflows, in addition to what the Bank of Ghana already has, should help in stabilising the cedi going forward,” the finance minister remarked, addressing recent concerns over forex fluctuations.
The cedi has recently come under pressure, with some forex bureaus reportedly selling the dollar above GHS17, despite BoG’s data indicating rates below GHS16. Analysts attribute this volatility to increased dollar demand as businesses prepare to finance Christmas imports and restock for next year, fearing potential depreciation. Speculation surrounding the upcoming December elections has also driven up foreign currency demand.
In response, the BoG has actively intervened to meet dollar demand through its dollar auction program, targeting Bulk Oil Distribution Firms and conducting weekly auctions for commercial banks to maintain a steady supply. These measures form part of a broader strategy by the BoG to stabilize the cedi and manage market uncertainty, aiming to minimize the currency’s depreciation amidst fluctuating market dynamics.
Independent power producer (IPPs), Sunon Asogli Power (Ghana) Limited has responded to allegations from the government regarding its recent decision to shut down its 560-megawatt power plant, following criticism from Finance Minister Dr. Mohammed Amin Adam.
In a statement released on October 16, the company explained that the closure was a necessary response to the Electricity Company of Ghana’s (ECG) significant unpaid debt of $259 million, which does not include fuel costs, as of September 2024. The mounting debt has put substantial financial pressure on Sunon Asogli, making it challenging to sustain regular operations.
As a result of the plant’s shutdown, many areas in Ghana have faced extensive power outages, leading to unreliable electricity supply for communities.
In light of these disruptions, the government has acted swiftly to initiate negotiations with Sunon Asogli to restore stability to the national electricity grid.
Sunon Asogli clarified that the shutdown was driven by rising operational costs and a lack of sufficient working capital, rather than bad faith.
CEO of the Independent Power Producers’ Association, Dr. Elikplim Apetorgbor, voiced support for Sunon Asogli, asserting that the government’s failure to meet its financial obligations left the company with limited options.
The leadership at Sunon Asogli remains committed to finding a mutually beneficial solution to the debt issue while ensuring a reliable power supply for the nation.
“I am not aware when we have agreed to sign restructuring terms with anyone. We are still negotiating. No one goes into a negotiation to lose. It is always a win-win affair. And he [Amin Adam] has always maintained a position that if you will not accept this, I am not going to pay you. And even if we are signing, what it means is that we have reached a meeting point. But to the best of my knowledge, there is nothing like that. We are not there yet.
“He [the Finance Minister] has promised countless times to make payment to Sunon Asogli but he has not honoured those obligations or those promises. But today he’s saying that somebody is acting in bad faith. What is worse than that? You owe me about $259 million.
“Give me $60 million out of that for us to negotiate about the $2 million. And you are saying this is bad faith. We are faced with a challenge. We lack the working capital to resume operation or to continue operation.”
Finance Minister has criticised Sunon Asogli Power for what he termed “bad faith” in the company’s decision to cease operations due to a $259 million debt owed by theElectricity Company of Ghana (ECG).
Dr. Mohammed Amin Adam noted that the government was in the midst of negotiating a debt repayment agreement when Sunon Asogli altered its position on the payment terms, further complicating the resolution process.
“We were working on an agreement to address the debt, but Sunon Asogli later revised their demands on payment terms, making it difficult for us to proceed,” the Finance Minister stated.
Difficult Negotiations with Sunon Asogli
Dr Mohammed Amin Adam shared that during an initial payment round to independent power producers, the Ministry of Finance allocated $30 million to Sunon Asogli.
Later, the company requested an additional $30 million, but the ministry did not agree to this request at the time.
During further negotiations, ECG proposed adding the additional $30 million as part of the settlement, but Sunon Asogli refused to sign the agreement until payment was made.
“They insisted we pay first before they would sign,” Dr. Amin explained.
“Later, they demanded $60 million, threatening to shut down if this amount wasn’t paid.”
The Finance Minister described the move as unfair and urged caution, stating, “We shouldn’t feel pressured just because it’s an election year.
“People sometimes act as if Ghana doesn’t know its rights, especially as we approach elections.”
Debt Restructuring for Independent Power Producers
The Finance Minister announced that Sunon Asogli Power has now agreed to sign a settlement agreement regarding the restructuring of debt owed to independent power producers (IPPs).
He noted the government’s progress in restructuring debts owed to IPPs such as Karpower, CENIT Energy, Sunon Asogli, and Aksa, and mentioned that two of these—CENIT and Aksa—have already finalised debt restructuring agreements.
On October 16, Sunon Asogli Power initiated a shutdown over ECG’s outstanding debt of $259 million.
The company pointed out that, unlike other IPPs, it had not invoicedECG for idle capacity charges; however, its debt increased by 23% from January to September 2024, with only 22.6% of invoices paid in that period.
The Finance Minister reassured the public that the shutdown has not affected Ghana’s power supply due to the country’s robust reserve capacity.
“Ghana has multiple power plants generating electricity, and despite the shutdown, we didn’t face a crisis,” Dr Amin noted, adding that the country maintains a surplus in power supply.
Provisional data on budget execution from January to July 2024 indicates that Ghana recorded an overall fiscal deficit of 2.4 percent of GDP, surpassing the budget target of 2.8 percent of GDP.
The deficit, amounting to GH¢24.8 billion, was financed through both domestic and foreign sources, with GH¢24.2 billion sourced domestically and GH¢17.4 billion from international financing.
The primary balance for the period reflects a deficit of GH¢3.8 billion, equivalent to 0.4 percent of GDP, slightly above the primary deficit target of GH¢3.5 billion (0.3 percent of GDP).
According to the 2024 National Budget Statement, the aggregate fiscal deficit, including grants, increased to 6.1 percent of GDP in 2022, up from 6.5 percent in 2021. Excluding grants, the deficit rose to 5.8 percent of GDP in 2022 from 5.0 percent in the previous year. This deterioration in the fiscal position occurred amidst rising debt servicing costs due to hikes in domestic and external interest rates, as well as increased transfers and relief supports aimed at cushioning the population against the surging cost of living.
The overall commitment basis fiscal deficit is projected to moderate from an estimated 4.6 percent of GDP in 2023 to 4.9 percent of GDP in 2024, with a further reduction expected to 2.4 percent of GDP by 2027. Similarly, the overall cash basis fiscal deficit is expected to improve from an estimated 5.3 percent of GDP in 2023 to 6.0 percent of GDP in 2024, and subsequently to 3.3 percent of GDP by 2027.
In terms of external payments, Ghana’s position remained strong in the first eight months of the year. The trade balance recorded a provisional surplus of US$2.78 billion, a significant increase from the surplus of US$1.66 billion recorded during the same period in 2023. This surplus was primarily driven by increases in gold and crude oil exports, which surged by 22.3 percent to US$12.92 billion in total exports. Notably, gold exports rose by 62.2 percent to US$7.27 billion, while crude oil exports increased by 16.7 percent to US$2.77 billion.
In contrast, cocoa exports, including both beans and products, fell by 42.7 percent to US$917.8 million as of August 2024, largely due to challenges posed by extreme weather conditions. The total imports bill also increased by 14.0 percent to US$10.14 billion during the same period. Oil imports accounted for US$3.0 billion, an increase of 3.6 percent, while non-oil imports rose by 19.0 percent to US$7.1 billion.
The buildup of international reserves continued into August 2024, with gross international reserves increasing by US$1.58 billion to reach US$7.50 billion at the end of the month, providing 3.4 months of import cover. Net international reserves also saw a boost, increasing by US$1.73 billion to US$4.92 billion at the end of August 2024. This higher accumulation in gross international reserves was primarily attributed to the strong performance of the domestic gold purchase program.
Ghana’s fiscal and external performance indicates a mixed yet improving outlook as the nation navigates economic challenges while striving for sustainability and growth.
Finance Minister Dr. Mohammed Amin Adam has revealed that the government will soon introduce an exchange offer to bondholders, marking a pivotal moment in the process of restructuring external debt.
He noted that the exchange offer aligns with the terms provisionally agreed upon with bondholders on June 24th, which include key concessions from them.
This move, according to the Minister, is designed to ensure an equitable distribution of the debt burden among domestic, official, and commercial external creditors.
He made this announcement during a monthly press briefing on Ghana’s economy, where he outlined the latest developments in the government’s external debt restructuring efforts.
Dr. Amin explained that the exchange will be available for 21 days, and the government is relying on strong participation from the bondholder community, both internationally and domestically.
Under the exchange offer, investors have two options: one offering no nominal haircut with lower interest rates, and another providing a 37 percent nominal haircut but with higher interest rates.
The Minister emphasized that the bond exchange is expected to save Ghana US$4.4 billion in debt servicing costs and lead to the cancellation of US$4.7 billion throughout the duration of the International Monetary Fund (IMF) programme.
He added that these measures could help reduce Ghana’s debt-to-GDP ratio to 55 percent by 2028, aligning with the country’s debt reduction goals.
The Minister also mentioned that progress in the external debt restructuring would help restore Ghana’s standing in international markets.
However, he disclosed that the government has taken measures to ensure the completion of key infrastructure projects affected by the debt restructuring process.
“Our efforts have enabled us to complete the Prempeh (I) International Airport, the Afari Military Hospital in Kumasi, as well as the Yakubu Tali International Airport in Tamale. 23. This week, the President cut sod for the Accra-Tema Motorway redevelopment project. Two (2) days ago, I also visited the Kasoa-Winneba Road, which is being fully funded from the national budget. Like many of you who ply that road, I am very impressed with the progress of work on this critical road,“ he said.
Dr. Amin asserted that the government was working with development partners to implement the Economic Roads Improvement Programme, which includes the Accra-Kumasi Road.
According to him, this is part of a broader strategy to open up the country for trade, tourism, and regional integration.
Ghana’s provisional nominal central government debt reached GH¢761.1 billion (US$51.1 billion) by July 31, 2024, according to Finance Minister Dr. Mohammed Amin Adam.
This represents a nominal increase from the previous debt of GH¢587.7 billion, which was equivalent to US$53.5 billion.
Dr. Adam shared these figures during the monthly Economic Update at the Finance Ministry in Accra on Thursday.
He explained that the rise in the debt figure in cedi terms and the decline in US dollar terms are largely due to the depreciation of the cedi.
“As of July 31, 2024, Ghana’s provisional nominal central government debt stood at GH¢761.1 billion, equivalent to US$51.1 billion. This represents a nominal increase from the previous amount of GH¢587.7 billion, equivalent to US$53.5 billion.”
“The increase in cedi terms and decrease in US dollar terms is attributed to a combination of factors, including cedi depreciation, disbursements from multilateral institutions, and domestic financing of the budget,” he stated.
The Ghanaian cedi has depreciated by 21.5% against the US dollar as of August 25, 2024, according to the Minister for Finance, Dr. Mohammed Amin Adam. This development comes despite efforts to stabilize the currency through various economic measures.
During a press engagement on Thursday, August 29, 2024, Dr. Amin Adam provided an update on the cedi’s performance and other key economic indicators. He highlighted that although the cedi has experienced depreciation, there have been improvements compared to previous years.
For instance, the depreciation rate moderated to 27.8% in December 2023, down from 54% in November 2022. Additionally, the cedi’s depreciation rate in the first quarter of 2024 was 7.7%, significantly lower than the 22.1% recorded in the same period of 2023.
“The cedi cumulatively depreciated by 18.6% against the US dollar at the end of June 2024, compared to 22% in the same period in 2023,” Dr. Amin Adam explained.
He further noted that the month-on-month depreciation rate showed signs of improvement, decreasing from 6.1% in May 2024 to 3.1% in June 2024, and further to 2.1% in July 2024.
“If this trend continues, I can assure you that our cedi will continue to hold against the major currencies,” he added.
The Finance Minister attributed the cedi’s relative stability to several factors, including the Bank of Ghana’s monetary policies, strong fiscal consolidation, the Gold for Oil programme, and the Bank of Ghana’s gold for reserves initiative.
Other contributing measures include the centralised platform for foreign exchange bureaus, implementation of the dynamic cash reserve ratio to absorb excess liquidity, revised regulations on advanced payments of imports, and positive market sentiments following the disbursement of the third tranche of the IMF extended credit facility.
In addition to the cedi’s performance, Dr. Amin Adam also discussed the country’s inflation trends, particularly in relation to imported goods. Imported inflation, which refers to the increase in prices of goods and services brought into the country due to factors such as exchange rates and global market conditions, declined by 1.9 percentage points to 15.6% in July 2024, down from 17.5% in June 2024.
This reduction in imported inflation contributed to the overall decline in Ghana’s inflation rate, which dropped to 20.9% in July from 22.8% in June 2024.
The Finance Minister noted that the decline in food and non-food prices played a significant role in the overall inflation decrease. Food inflation fell by 2.5 percentage points to 21.5% in July, while non-food inflation declined by 1.1 percentage points to 20.5% during the same period.
At the Mid-Year Budget Review, Finance Minister, Dr. Mohammed Amin Adam sought Parliament’s approval to withdraw GH₵500 million from the Contingency Fund.
This request is part of the government’s emergency response to the looming food insecurity crisis, driven by a severe dry spell affecting eight regions of Ghana.
The appeal comes shortly after President Akufo-Addo directed the Finance Ministry to secure an GH₵8 billion relief package to support farmers severely impacted by the ongoing drought.
In a letter to Parliament’s Finance Committee, Dr. Amin Adam explained that with only four months left in the fiscal year, the unplanned nature of the GH₵8.36 billion expenditure, due to “force majeure,” makes it impossible to fully cover this amount through reallocations within the existing 2024 Budget.
Consequently, he requested the Finance Committee’s approval to withdraw GH₵500 million from the Contingency Fund, citing constitutional and legislative provisions, including Article 177(1) of the 1992 Constitution, Section 36(1) of the Public Financial Management Act, 2016 (Act 921), and Section 227(1) of Parliament’s Standing Orders.
This sum will be supplemented by additional resources mobilized from Development Partners and by realigning certain aspects of the 2024 Budget.
The Ministry emphasized that the National Emergency Response Programme, supported by these funds, will enable the government to implement critical measures to mitigate the crisis.
In a letter to Parliament’s Finance Committee, the Minister indicated that “considering that we are eight (8) months into the implementation of the 2024 Budget and the proposed interventions are unplanned expenditure occasioned by a “force majeure”, Government cannot fund the request of GH¢8.36 billion solely from a reallocation of existing budget lines in the 2024 Budget.”
In response to the situation, the government has already imposed an immediate ban on the export of key grains such as maize, rice, and soybeans.
During an August 26 press briefing, the Minister for Food and Agriculture, Bryan Acheampong, stressed that this ban is necessary to ensure the availability of these essential crops on the domestic market.
This decision follows alarming reports indicating that 435,872 farmers have already suffered losses estimated at GH₵3.5 billion due to the prolonged dry conditions.
Finance Minister Dr. Mohammed Amin Adamhas warned of a possible increase in foreign exchange demand if Ghana is forced to import food to address shortages caused by the ongoing drought in Northern Ghana.
During a press conference in Accra on Monday, August 26, Dr. Amin Adam expressed cautious optimism about making significant strides in securing the nation’s food supply.
However, he acknowledged that resorting to food imports to meet market needs could have adverse effects on the economy.
He also noted that discussions with Agriculture Minister Bryan Acheampong on the best strategies for sourcing food to stabilise the markets and provide necessary relief have not yet taken place.
“I’m very optimistic that we will make significant progress, but we also know that our inflation basket is dominated by food inflation. When you see food shortages and their effect on prices, you should expect that inflation will respond.
He added, “And will respond in a way that you do not want. Then we are also talking about bringing in food for the markets and also providing food relief. I’m yet to discuss with the minister how we are going to source the food, he may be running away from mentioning imports.
But we already import a lot of our food. And so, one other way that the economy may be affected is from the perspective of foreign exchange.
“People are complaining the cedi is getting weaker against the dollar, the rate is higher against the dollar. And so, if you are going to bring in more food to support what we already have, you need to back it with forex. And therefore, the demand for the dollar will certainly increase.
Relative to what we anticipated if we didn’t have to meet the additional food requirements, some of which may come through inputs.”
He emphasized that the drought would have far-reaching consequences, impacting the economy in various ways.
“In different ways, the economy is going to be affected.”
Northern Ghana is currently grappling with a severe drought that has sparked widespread concerns about food security and the livelihood of thousands of farmers.
The region has been without rain for over two months, with the extended dry spell stunting crop growth and leaving farmers with little hope for a successful harvest.
The Chamber for Independent Power Generators is calling on the Minister of Finance, Dr. Mohammed Amin-Adam, to urgently expedite the disbursement of funds from the International Monetary Fund (IMF) to the Independent Power Producers (IPPs).
In a statement signed by the Chamber’s Chief Executive Officer, Dr. Elikplim Apetorgbor, the Chamber expressed concern that, despite the announcement of the IMF funds being released over a month ago, there has been no visible action or commitment towards allocating these funds to the IPPs.
The Chamber highlighted that this delay has greatly impeded the ongoing, extended re-negotiations with the IPPs concerning the settlement of legacy arrears.
“Despite your announcement of the IMF cash release over a month ago, there has been no demonstrable commitment or action taken towards disbursing these funds to the IPPs. Your continuous delay is becoming unbearable and frustrating,” the statement read.
It further emphasized the need to resolve these financial obligations promptly to ensure a stable and reliable power supply, noting that the government currently owes its members approximately $2.0 billion.
The Chamber underscored that the timely release of the funds is essential for maintaining the trust and cooperation of the IPPs.
It concluded by urging the Minister of Finance to take immediate steps to settle the debt and finalize negotiations with the IPPs, stressing the importance of this action for the continuity and stability of the nation’s power supply.
Finance Minister Dr. Mohammed Amin Adam has criticized the Association of Ghana Industries (AGI) for obstructing government initiatives aimed at addressing the role of certain companies in the ongoing exchange rate fluctuations.
The Minister pointed out that specific companies within the industrial sector have been identified as major contributors to these volatilities, with their actions exacerbating the instability of the local currency.
During a recent engagement with the AGI, Dr. Amin Adam highlighted the need for manufacturing companies to cease practices that undermine the stability of the cedi.
He warned that the government might soon be compelled to take action against these companies to ensure the stabilization of the currency.
“While we have commendable corporate citizens, we also have those whose practices are harmful. For instance, some companies sell products, collect payments in cedi, then convert the cash to dollars and hoard it in banks, worsening our forex challenges. If we begin to crack down on this behavior, the AGI might accuse us of targeting their members,” the Minister cautioned.
He provided an example to underscore his point: “One company deposited $50 million in a bank without holding any cedi. This single action caused the Cedi to depreciate by 2 points—when the rate was at 13 cedis to the dollar, it jumped to about 15 cedis due to this deposit. These practices are damaging our currency.”
In response, AGI’s Chief Executive Officer, Seth Twum Akwaboah, expressed the association’s commitment to ethical standards, affirming that AGI would not defend any member found guilty of such activities. He assured that the association would investigate the claims and hold any culpable members accountable.
“As an association, we operate with high ethical standards, and if any member is involved in these practices, we will expose and deal with them severely. While we were unaware of these specific instances, I do not doubt the Minister’s assertions,” Akwaboah stated.
He further urged AGI members to adhere to best practices, adding, “In any community, there are always a few bad actors. Our member companies must stop engaging in such practices. If caught, AGI will not defend you—this is a firm assurance. However, we also need to understand the circumstances that led to such actions.”
The AGI also took the opportunity to outline several critical challenges that must be addressed to better support industries across the country.
A report by an investigative media house, Fourth Estate, has rubbished the Finance Minister’s claim that government has made significant progress in some water projects initiated in 2020 in the Northern parts of Ghana.
The Finance Minister, Dr. Amin Adam, while reading the 2024 budget in Parliament, indicated that Water Supply Projects in Wenchi, Sekondi-Takoradi, Keta, Yendi, Tamale, Damongo, Sunyani, and Techiman are at various stages of completion.
“The following are at various stages of completion: Wenchi Water Supply Project, Sekondi-Takoradi Water Supply Project, Keta Water Supply project, Yendi Water Supply Project, Tamale Water Supply, Damango Water Supply, Sunyani Water Supply and Techiman Water Supply Project,” he added.
However in its later expose, Fourth Estate has revealed that residents in these areas are still grappling with severe water shortages despite the launch of the water supply project.
A mother of four from Tamale, Ayisha Danlaadi, shared with The Fourth Estate how the persistent water crisis has affected her family. She often has to travel four kilometers to a neighboring village just to collect water.
This daily struggle has forced her children to either arrive late to school or miss classes entirely.
Ayisha who reflected on the unfulfilled promises that once brought hope stated that “the situation became critical and we travelled to the next village which is about four kilometres away for water”.
“If anyone had told them in 2020 that four years down the line, they’d be so desperate for water to have to dig deep into the earth for it, the people of Changnaayili would have laughed it off: 2020 was a year of hope, optimism and a lot of promises.”
Accessing water; a basic necessity remains a daunting task in these areas, comparable to the difficulty of mining rare minerals. Despite promises of new water infrastructure, the situation on the ground has barely improved.
The little water they manage to gather after long journeys is usually dirty and muddy, requiring them to resort to makeshift purification methods.
Another resident of Tamale, Hamza Mohammed, explained that he uses potassium alum to treat the water he collects from a nearby village.
Facing unrelenting water scarcity, the residents of Changnaayili, near Tamale, decided to take matters into their own hands.
They dug a massive pit, the size of a football field and around 10 meters deep, until they reached the water table. Although the water they extracted is still muddy, it’s better than having none at all.
This water now serves as their main source for drinking, cooking, and bathing.
In 2020, President Akufo-Addo visited these areas to launch water projects, promising significant benefits for the local communities.
The $223 million Tamale water project was expected to produce 29.7 million gallons per day, effectively tripling the city’s current water supply. Yet, four years later, the project has yet to deliver any water.
In Yendi, the water supply project, funded by a $30 million loan from the India Exim Bank, was meant to provide 15,000 cubic meters of water daily.
The President assured the people of Yendi that this would mark the beginning of extensive infrastructure development. However, the project has not commenced.
“This will be, by far, the biggest water project in the five northern regions, and the second biggest in the history of our country,” he announced during the sod-cutting ceremony on July 29, 2020, in Tamale.
Similarly, in Damongo, a $49 million water project was promised, with the President stating it would serve 68,000 residents.
Spokesperson for the Chief of Damongo, Alhaji Abu Mahama Salange, voiced his frustration, noting that despite repeated promises, the project remains unstarted.
Yendi residents continue to rely on boreholes for drinking water, but seasonal changes and the effects of climate change—such as droughts and unpredictable rainfall—have worsened the water situation, threatening the community’s access to safe water.
This delay in progress also jeopardizes Ghana’s efforts to meet the United Nations Sustainable Development Goal of providing universal access to safe and affordable drinking water by 2030.
Secretary to the Overlord of Dagbon, Alhaji Abdul-Raman Mohammed, disclosed that numerous follow-ups with the government have yielded no results, leaving Yendi’s water needs unmet.
In the meantime, Vice President, Dr. Mahamudu Bawumia, in October 2023, launched a World Bank-funded initiative aimed at providing essential infrastructure, including water, to northern regions. Despite these announcements, tangible progress on water projects remains elusive.
The Managing Director of the Ghana Water Company Limited (GWCL), Dr. Clifford Braimah, attributed the delays to debt restructuring, which discouraged banks from releasing funds for the water projects in Tamale, Yendi, and Damongo.
As a result, these projects were stalled, as banks hesitated to provide loans under uncertain financial conditions.
In July 2024, Finance Minister Dr. Mohammed Amin Adam inaccurately reported to Parliament that these water projects were at various stages of completion, sparking widespread frustration and demands for greater transparency from the government.
While the GWCL is working on temporary solutions, such as borehole construction and treatment plants, residents of Changnaayili and other northern communities are still waiting for the clean water government promised.
Minister for Finance, Dr. Mohammed Amin Adam, has announced that Ghana’s economy has expanded by $20 billion under the Akufo-Addo/Bawumia Administration as of December 2023.
Speaking at the Greater Accra Regional Town Hall meeting in Accra, Dr. Amin Adam explained that the economy, which was valued at $64 billion in 2013 under Mahama’s administration, had decreased to $56 billion by 2016. However, it had risen to $76 billion by 2023, reflecting significant nominal growth.
The Finance Minister highlighted the government’s tough economic decisions amid global crises such as the COVID-19 pandemic and the Russia-Ukraine war, which have begun yielding positive results.
He noted, “The economy is now turning the corner.”
One of the key measures cited by Dr. Amin Adam was the Domestic Debt Exchange Programme (DDEP), which achieved 95% participation from local bondholders.
Additionally, the government negotiated with external bilateral creditors to secure $2.8 billion in debt service relief, granting Ghana a grace period until 2026 with reduced interest rates.
Dr. Amin Adam also pointed out the $3.4 billion trade surplus recorded in 2023 under the current administration, compared to the $1.8 billion trade deficit in 2016 under the Mahama-led government.
The town hall meeting, organized by the Ministry of Information in collaboration with the Regional Coordinating Council, aimed to showcase the government’s infrastructural projects and social interventions in the Greater Accra Region.
It provided an opportunity for all 29 District, Municipal, and Metropolitan Assemblies (MMDAs) to exhibit key projects implemented since 2017. The event also allowed journalists and the public to ask questions and seek clarifications from government officials.
Discussing inflation, Dr. Amin Adam reported a significant drop from 54% in 2022 to 22% as of June 2023, attributing the surge in inflation to global economic challenges rather than domestic mismanagement.
He projected that inflation would decrease further to 15% by the end of the year and promised to bring it down to a single digit by 2025 if given the mandate in the upcoming December 7 election.
Dr. Amin Adam also highlighted the increase in exports due to the ‘One District, One Factory’ initiative, with 169 factories currently operational.
Minister of Information, Ms. Fatimatu Abubakar, in her welcome remarks, stated that similar town hall meetings would be held across all 16 regions until November.
Minister of Finance, Dr. Mohammed Amin Adam, has rendered an unqualified apology to Ghanaians for the hardships caused by the Domestic Debt Exchange Programme (DDEP).
On 5th December 2022, the Government of Ghana launched Ghana’s Domestic Debt Exchange programme, an invitation for the voluntary exchange of approximately GHS137 billion of the domestic notes and bonds of the Republic, including E.S.L.A. and Daakye bonds, for a package of New Bonds to be issued by the Republic.
During a town hall meeting in Accra on Tuesday, August 6, 2024, Dr. Amin Adam explained that the DDEP was a necessary requirement set by the International Monetary Fund (IMF) to stabilize the economy. He emphasized that it was never the government’s intention to impose hardships on the citizens.
“We decided to restructure our debts because it was one of the requirements by the IMF. We started with the Domestic Debt Exchange Programme, the DDEP was a very successful programme, achieving 95% participation. And on this note, I would like to appeal to the people of Ghana to forgive us, forgive us.”
This apology follows advice from Assin Central Member of Parliament, Kennedy Agyapong, who urged members of the ruling New Patriotic Party (NPP) to acknowledge their economic management mistakes and apologize to the public.
Dr. Amin Adam acknowledged the difficulties caused by the programme but highlighted its essential role in ensuring the country’s long-term financial health.
He expressed gratitude to Ghanaians for their support and resilience during this challenging period, emphasizing that their sacrifices were crucial for the economic recovery being witnessed.
“It is never the intention of any government to impose hardships on its people. More so, the NPP government has demonstrated that we want to reduce the burden on the Ghanaian people.”
“It was a necessary, very important decision at the time, that if we had avoided it, our economy would not recover as it has recovered today. The decisions we made, and all the support you gave us during the DDEP have contributed largely to the recovery our economy is seeing today.”
Dr. Amin Adam reassured the public of the government’s commitment to mitigating the negative impacts of the DDEP and working towards sustained economic growth.
He called for continued cooperation from the citizens, promising that the collective efforts would lead to better economic stability.
“This is why I want to appeal to you to forgive us. But also to thank you on behalf of the president for the sacrifices, for the efforts that you all have made participating in the DDEP that saved our economy,” the Finance Minister concluded.
The finance minister has apologised to Ghanaians for the struggles and difficulties induced by the domestic debt exchange program.
Mohammed Amin Adam says the apology is necessary to assure Ghanaians that the government meant well in its fiscal consolidation.#News360pic.twitter.com/Y0gOYpwKw2
Finance Minister Dr. Mohammed Amin Adam will attend the first-ever National Sales Leaders Conference (NSLC) as the special guest of honor on August 14th and 15th.
This event, to be held at the Accra International Conference Centre, will also include Deputy Minister for Trade and Industry Michael Kofi Okyere Baafi; CEO of MGA Consulting Ghana Limited, Michael Abbiw; President of the Chartered Institute of Marketing Ghana, Dr. Daniel Kasser Tee; along with various business executives and industry leaders.
The NSLC will highlight innovations in sales, strategies for revenue growth, sustainable sales practices, and sales leadership.
Participants will engage in keynote sessions, seminars, panel discussions, and workshops addressing critical sales challenges across different sectors.
These activities are intended to help sales leaders remain competitive, expand their professional networks, and boost their organization’s brand recognition and credibility, ultimately driving revenue growth.
Organized by CorEvents Solutions and MGA Consulting Ghana Limited in collaboration with the Chartered Institute of Marketing Ghana, the NSLC aims to ignite a national conversation on the crucial role of sales within organizations and its impact on the Ghanaian economy.
The conference, themed “Sales Unbleached: The Role of Sales in Sustained Organizational Revenue Growth and Economic Development,” emphasizes the importance of effective sales strategies in achieving economic success.
Organizations are urged to take advantage of this conference to equip their sales teams with modern technologies and strategies that can revolutionize their operations.
Finance Minister Dr. Mohammed Amin Adam has indicated that for the first half of 2024, the trade balance (economic measure that represents the difference between the value of a country’s exports and imports of goods and services) recorded a provisional surplus of US$1.81 billion.
According to the Finance Minister, this was the result of a larger increase in exports which outweighed the increase in imports.
This is higher than the outturn of US$1.60 billion recorded in the corresponding period of 2023.
He made this information known to the entire country when he delivered the 2024 Mid-Year Budget Review on the floor of Parliament on Tuesday, July 2023.
The improved trade surplus resulted in larger current account surplus of US$1.28 billion (1.5 percent of GDP) in the first half of 2024.
“This compares with a Current account surplus of US863.0 million (1.1 percent of GDP), registered in the same period a year ago,” Dr Amin further revealed to the House.
He also noted that developments in Ghana’s external sector in 2023 was marked by a general reduction in external payments, resulting in a Current account surplus and reduced Capital & Financial account outflow.
“Consequently, the overall Balance of Payments recorded a surplus of US$461.6 million. The current account improved to a surplus of US$1.41 billion, driven by a strong growth in remittances as the reforms in the Fintech ecosystem started to yield positive results,” he added.
On Tuesday, July 23, Finance Minister Mohammed Amin Adam delivered the 2024 mid-year budget review to Parliament.
During his presentation, Dr. Amin Adam reassured that the government remains committed to adhering to its budgetary allocations despite the ongoing economic challenges.
He expressed optimism about the country’s efforts to manage the budget deficit, enhance revenue generation, and control expenditures.
Dr. Amin Adam reiterated the administration’s dedication to maintaining fiscal discipline and ensuring budgetary control.
Here is a detailed report on the progress and challenges facing the Ghanaian economy in 2023 and the first half of 2024.
Finance Minister Dr. Mohammed Amin Adam, has revealed that the government has disbursed 5.4 billion Ghana Cedis to support Livelihood Empowerment Against Poverty (LEAP), School Feeding programme, Capitation Grant and NHIS since January, 2024.
He noted that the aim of this disbursement was to to reduce the burden on the vulnerable in our country.
The minister made this information known when he delivered the 2024 Mid-Year Budget Review in Parliament on Tuesday, July 2023.
“We have spent about 1.5 billion Ghana Cedis to support 1,488,575 students under the Free SHS programme between January and June this year,” he added.
LEAP
Payment for the 89th LEAP cycle (covering January and February 2024) commenced nationwide on Monday, July 1, 2024.
During a press briefing in Accra, Dakoa Newman, the Minister for Gender, Children, and Social Protection, highlighted that the increased funds reflect a doubling of the initial cash grants for beneficiary households.
She outlined the new amounts: GH¢256 for one-member households (up from GH¢128), GH¢304 for two-member households (up from GH¢152), GH¢352 for three-member households (up from GH¢176), and GH¢424 for four-member households (up from GH¢212).
Meanwhile, the Livelihood Empowerment Against Poverty (LEAP) Management Secretariat paid out cash grants totaling GH¢84,480 to 44 beneficiaries who had passed away, according to the Auditor General’s report.
The report also stated that beneficiaries who were no longer eligible for the program received payments totaling GH¢396,620.
A government-run social protection program called LEAP seeks to lessen economic and social hardship by giving cash grants to extremely poor and vulnerable households.
“We found that LMS paid cash grants to caregivers of deceased beneficiaries in one-member households, resulting in payments to 44 deceased beneficiaries amounting to GH¢84,480.”
“We also noted that LMS did not conduct reassessments of LEAP as required. Despite identifying positive impacts of the programme, LMS failed to graduate or exit beneficiaries even when their socioeconomic status had improved. This led to payments of GH¢396,620 to beneficiaries who no longer qualify to be on the programme,” he stated.
On August 8, 2023, Johnson Akuamoah Asiedu, the Auditor General, sent a transmittal letter to the Speaker of Parliament containing this information.
The Auditor General noted that the audit, which covered the years 2017 to 2022, was carried out at the LMS and five districts spread across three regions from February to October 2022.
He also emphasized that LMS had violated fund utilisation guidelines, which meant that more money was spent on program administration than was allowed. This resulted in GH¢15,369,309.97 in overspending, endangering the program’s viability. Furthermore, MOGCSP failed to keep accurate records of the money spent.
He proposed that in order to increase accountability, MOGCSP should improve its record-keeping procedures.
School feeding
The Ghana School Feeding Programme (GSFP) has announced that the proposed GHS1.50 increase per beneficiary pupil will be implemented with the payment for the second term of the 2023/2024 academic year.
This adjustment, as detailed in the government’s 2024 Budget and Financial Statement, will come into effect for the second term.
In a statement released on Friday, July 5, 2024, the GSFP assured all caterers across the 16 regions that the National Secretariat is diligently working with the sector ministry to ensure the timely release of funds by the Controller and Accountant General’s Department to clear outstanding arrears at the new approved rate.
The statement clarified that the recent payment for the first term was based on the “grant of GHS1.20 per pupil as captured under the 2023 budget.”
It emphasized that any deviation from this approved rate for the first term would have been “extremely challenging.”
“All caterers are kindly requested to exercise a little more patience as we finalize the processes for the second term payment,” the statement read.
Finance Minister Dr. Mohammed Amin Adam, has revealed that the government has invested almost GHC10 billion in the road sector since January, 2024 to enhance transportation and spur growth.
He made this information known to the entire country when he delivered the 2024 Mid-Year Budget Review on the floor of Parliament on Tuesday, July 2023.
“I can also confirm that Government has secured equipment to complement the efforts of our local authorities in improving community roads nationwide,” he added.
President Akufo-Addo has asserted that his administration has surpassed the combined road infrastructure achievements of the Mills/Mahama era.
Speaking at the sod-cutting ceremony for the dualization of the Anwiankwanta-Ahenema Kokoben Road on Monday, July 15, Akufo-Addo emphasized the scale of road development during his presidency.
“We have completed 12,830 kilometres of roads since 2017, a stark contrast to the 4,636 kilometres achieved from 2009 to 2016,” President Akufo-Addo stated, highlighting the extensive roadworks including asphalt overlays, new constructions, bridges, and ongoing interchange projects.
“The progress made sets a high standard and serves as a blueprint for what can be achieved with dedication and strategic planning. Successive governments must ensure sustained investment in infrastructure to address the road deficit and meet the evolving needs of our rapidly growing population,” the president said.
Meanwhile, the Chiefs of Hwidiem in the Asutifi South District and Kenyasi Number 1 and 2 in the Ahafo Region have issued a firm ultimatum to the government, demanding the swift resumption of work on the Hwidiem-Kenyasi road.
At a press conference in Kenyasi, the Chiefs voiced their frustration over the ongoing delays in road repairs, which they argue are severely affecting their communities.
The contractor, Kofi Job, has been given a strict deadline to resume work or face repercussions.
The Chiefs have warned that if their demands are not addressed by August 6, 2024, they will stage a large-scale demonstration.
Nana Agyemang, representing the three communities, criticized the government’s lack of response despite repeated appeals for urgent intervention regarding the deteriorating road conditions.
“The road continues to worsen with no intervention from the authorities. We urge all citizens to join us in the upcoming demonstration.
“While we are committed to resolving this issue peacefully, we may have no choice but to continue with protests until the roads are fixed. We hope that the government and other stakeholders will heed our call and take immediate action,” he added.
This marks Dr. Amin Adam’s debut budget presentation since his appointment to the role in February 2024.
The presentation of the budget review adheres to Section 28 of the Public Financial Management Act, 2016 (Act 921), which mandates an update on the government’s fiscal performance and revised financial projections halfway through the fiscal year.
Finance Minister Dr. Mohammed Amin Adam has urged Saudi investors to help raise $12 billion over the next three years.
He emphasized that this funding is crucial for restoring the country to its pre-COVID economic state.
The request was presented at a significant meeting with the Arab Bank for Economic Development in Africa (BADEA), themed ‘Ghana: Unleashing Opportunities through Strategic Investments’.
Dr. Adam highlighted the importance of foreign investment in Ghana’s post-COVID recovery efforts, stating: “If you can help us raise US$12billion over the next three years to finance our recovery and finance our growth to the pre-COVID era, you will have your names written in golden ink as sustainable partners of Ghana”.
The minister emphasized the government’s dedication to social programs, pointing out substantial increases in funding across different sectors.
He mentioned that the budget for the Livelihood Empowerment Against Poverty (LEAP) program has risen from GH¢49 million in 2016 to nearly GH¢500 million now.
Similarly, the school feeding program has expanded from serving 1.6 million children in 2016 to reaching 4 million children today.
Healthcare funding has also grown significantly, with the National Health Insurance Scheme budget increasing from GH¢1.1 billion in 2016 to an anticipated GH¢6.5 billion this year.
Dr. Adam highlighted that these funding increases demonstrate the government’s commitment to fostering inclusive growth.
Finance MinisterDr. Mohammed Amin Adam acknowledged the challenges and unexpected shocks faced by the Ghanaian economy, emphasizing its resilience amid global economic uncertainties.
He highlighted the government’s effective strategies in economic recovery, which have surpassed initial expectations for growth.
Addressing stakeholders at a session on 2024 budget implementation with bankers, Dr. Amin Adam underscored the importance of collaborative efforts for sustainable economic progress.
He called for transparent and inclusive policies, inviting input to address current economic issues and explore innovative solutions.
Highlighting the upcoming SME Growth and Opportunity Programme, scheduled for launch on July 16th, Dr. Amin Adam emphasized the pivotal role of SMEs in driving economic revival.
He announced plans for the Development Bank Ghana to allocate approximately GHS 1.4 billion through the financial sector to support SMEs.
Additionally, partnerships with entities like the IFC aim to secure a $400 million package to bridge financing gaps for SMEs in the medium term.
“Our economy is at a pivotal juncture, and it is imperative that we work together to ensure sustainable growth and prosperity for all. This meeting is a testament to our commitment to transparency, inclusivity, and shared responsibility in shaping our economic policies.
“Today, we will discuss key strategies and policies that will impact our economy. We aim to address current economic issues and explore innovative solutions through your inputs. Your insights and feedback are invaluable, and I encourage open and constructive dialogue throughout our discussions,” he said while speaking at a stakeholders’ engagement on the 2024 budget implementation with bankers.
He added “We are living in a time of rapid change and uncertainty, but also of great potential. By leveraging our collective expertise and resources, we can create a resilient and dynamic economy that benefits every citizen.
This requires us to be bold in our vision, pragmatic in our approach, and united in our efforts. To that end, Ladies and Gentlemen, the Government has set its sights on creating a viable SME ecosystem that ensures businesses with high-growth potential are given the technical capacity and financing support to scale and rapidly create impact.”
“The Development Bank Ghana as part of the programme is looking to channel close to GHS 1.4 billion through the financial sector for onward lending to viable SMEs. Development partners such as the IFC are also looking to structure a $400 million package to complement this financial support and ensure we can close the financing gap for our SMEs over the medium term.”
Ranking Member on the Finance Committee of Parliament, Isaac Adongo, has responded emphatically to criticisms from Finance Minister Dr. Amin Adam regarding his recent comments on the dollar exchange rate.
Adongo clarified that his advice to businesses regarding purchasing dollars was aimed at providing truthful information to Ghanaians.
Dr. Amin Adam had previously criticized Adongo during a joint press conference with officials from the Bank of Ghana and the IMF.
The Finance Minister expressed concerns over speculative actions affecting the stability of the cedi and cautioned against actions that could exacerbate currency challenges.
In a counter-statement, Adongo disputed the characterization of his advice as speculative, asserting that his remarks were grounded in factual observations.
He defended his stance during an interview with Citi FM, reiterating that he does not engage in speculation but rather offers honest and accurate information.
“What did I say that is not true?” Adongo questioned, pointing out the fluctuation in the dollar exchange rate following recent economic measures. He emphasized that his advice aimed to guide businesses in making informed decisions amid economic uncertainties.
“So, if you needed dollars to do your business, by all means, you should go ahead and buy them. How is that unpatriotic?” Adongo challenged, highlighting the practical considerations for businesses in managing their financial operations.
Adongo further pressed the Finance Minister with a rhetorical question: “Will you give businessmen additional money to buy dollar when the rate increases?”
He underscored the practical impact of exchange rate fluctuations on business operations and questioned the adequacy of governmental measures in supporting businesses amidst economic challenges.
Finance Minister Amin Adam has made claims that efforts and policies by the current government has successfully revitalized and improved the country’s economic situation.
The Minister’s statement likely aims to reassure citizens and stakeholders that the government is effectively managing the economy.
Implying that various economic indicators, such as GDP growth, employment rates, and investor confidence, have shown significant improvement.
Despite the finance minister’s remarks, the rising prices of food, services, and petrol, along with poor salaries, paint a different picture.
Finance Minister, Dr. Mohammed Amin Adam has reiterated the government’s commitment to fiscal discipline and responsible spending, ensuring economic policies remain steady despite the approaching 2024 elections.
With a focus on tightening expenditure and preventing policy setbacks, the government aims to uphold economic stability and foster continued growth.
Speaking at a joint press conference with the International Monetary Fund (IMF) on Monday, July 1, 2024, he emphasized, “Despite the fact that 2024 is an election year, we are committed to enhancing domestic revenue mobilization and tightening expenditure commitment controls to avoid policy slippages.”
Dr. Amin Adam further affirmed the government’s dedication to maintaining macroeconomic policy adjustments aimed at achieving comprehensive restoration of stability and supporting a resilient economy for sustainable growth and development.
“We are committed to sustaining our macroeconomic policy adjustment and reforms to fully restore macroeconomic stability and debt sustainability while fostering a sustainable increase in economic growth and poverty reduction,” he assured.
Ghana’s Finance Minister, Dr Mohammed Amin Adam, has delivered optimistic news about the country’s economic trajectory, highlighting resilient growth and positive indicators during the first quarter of 2024.
Speaking at a press briefing on Monday, Dr Adam underscored the robustness of Ghana’s economic recovery, noting that growth has surpassed initial projections.
He attributed this strong performance to ongoing stability in the macroeconomic environment, supported by the government’s steadfast adherence to the IMF-supported program.
Industry emerged as a frontrunner in driving economic growth, achieving a notable 6.8% increase, followed by agriculture at 4.1% and services at 3.3%. Dr Adam highlighted that these sectoral performances contributed to Ghana’s highest GDP growth rate since the fourth quarter of 2020.
The Finance Minister reiterated the government’s commitment to sustaining macroeconomic stability and fostering sustainable growth.
He emphasized that the IMF‘s approval of the second review of Ghana’s US$3 billion, 36-month Extended Credit Facility (ECF) Arrangement in May 2023 was pivotal. This approval facilitated an immediate disbursement of approximately $360 million, bringing Ghana’s total disbursements under the arrangement to about $1.6 billion.
Dr Adam further announced that the third tranche of the IMF’s disbursement, amounting to $360 million, was expected to be received on Monday, July 1, 2024. This financial injection underscores international confidence in Ghana’s economic reforms and governance.
Looking ahead, Dr Adam expressed confidence in Ghana’s economic prospects for the remainder of the year, citing the positive momentum observed in various sectors. He affirmed the government’s dedication to enhancing economic policies that support inclusive growth and development across the country.
The Minister of Finance, Dr Mohammed Anim Adam is scheduled to appear before Parliament on Wednesday, July 3, 2024, to address an urgent question posed by Deputy Majority Leader Patricia Appiagyei regarding the expenditure of the National Cathedral project.
Majority Leader Alexander Afenyo-Markin has stated that the Minister will be required to provide detailed information on the project’s expenditures and confirm whether a value-for-money audit has been conducted.
Deputy Majority Leader Appiagyei has emphasized the importance of the Minister’s appearance to ensure transparency in the use of public funds for the National Cathedral.
The Minister is expected to furnish comprehensive financial details of the project and clarify whether a value-for-money audit has been conducted to ensure accountability and transparency.
Majority Leader Afenyo-Markin announced these proceedings on the floor of Parliament on Friday, June 28, 2024.
Ahead of the Finance Minister’s appearance, the Minority is pressing for broader accountability measures from the government.
Samuel Okudzeto Ablakwa, MP for North Tongu Constituency, has urged the Speaker to enforce the House’s decision to establish a bipartisan committee to investigate the issues surrounding the project.
Finance Minister, Dr. Mohammed Amin Adam, has confidently announced that Ghana’s economy is set for a strong recovery this year, despite recent challenges.
He highlighted that the economy is surpassing expectations, demonstrating robust growth rates that have surprised international organizations like the IMF and World Bank.
For instance, Ghana exceeded growth projections of 1.5% last year, achieving 2.9%, and surpassed this year’s forecasted growth of 3.1% with an impressive 4.7% growth in the first quarter.
“This year, our economy is going to surprise the world.
Dr. Amin Adam emphasized, “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 would grow at 1.5%, but we grew at 2.9%. In the first quarter of this year, they projected we would grow at 3.1%, but we grew at 4.7%,” Dr. Amin Adam said during a Town Hall meeting held in the UK over the weekend.
He further stated, “This economy will grow, and it will grow faster than everyone thinks.”
Addressing concerns about the Ghana cedi’s depreciation against the US dollar, he assured that measures are in place for the cedi to strengthen, aiming for a comeback after a challenging period where it depreciated by 20.1% in 2024.
Currently trading at approximately GH¢15.50 per dollar in major forex bureaus, the finance minister remains optimistic about the currency’s future performance.
