Economist Professor Lord Mensah has expressed concern that the ongoing developments in Parliament could exacerbate investor uncertainty regarding Ghana’s economic outlook.
He emphasized that critical fiscal policies need to be reviewed and passed by Parliament in a timely manner, but this process could be hindered by the ongoing disagreement between the two major political parties the National Democratic Congress (NDC) and the New Patriotic Party (NPP) over which party holds the majority in the House.
Prof. Mensah cautioned that such political discord could send negative signals to both investors and businesses looking to operate in Ghana.
“Parliament plays a major role when it comes to approvals of expenditure lines and our approvals of some revenue line. So if it turns out that as a result of this power shift things are not beings settled, of course the investor community are going to see it to be more or less a bad signal”, he cautioned.
He further noted that political uncertainty creates an unfavorable environment for investors, who value predictability and a clear future direction.
“At the end of the day it will impede their decisions as to whether to settle on Ghana or move elsewhere. Under a democratic dispensation, everything has to do with timelines and we are moving into November. We have to start concluding on our budget lines for next year”, he said.
Highlighting the importance of timing in investment decisions, Prof. Mensah stressed that any further delays in passing necessary fiscal laws could erode investor confidence.
Using the upcoming November budget as an example, Prof. Mensah warned that any delay in its presentation could harm the country’s economic prospects.
“At the end of the day it will impede their decisions as to whether to settle on Ghana or move elsewhere. Under a democratic dispensation, everything has to do with timelines and we are moving into November. We have to start concluding on our budget lines for next year”, he said.
On October 22, 2024, Speaker of Parliament Alban Bagbin adjourned the House indefinitely amid controversy over vacant seats.
This decision came during a session where NDC MPs had taken over the Majority side of the aisle, following the walkout of NPP Members of Parliament over a dispute regarding which party holds the majority.
During the brief proceedings, the Speaker agreed with MP Francis-Xavier Sosu that the parliamentary record should be amended to reflect that the NPP was in the Minority during their walkout last Thursday.
Effutu MP Alexander Afenyo-Markin, who led the NPP MPs out of the chamber, explained that they had retreated to their offices, awaiting further directives from Speaker Bagbin. He stated that the NPP MPs opted for peace rather than engaging in confrontation, emphasizing that Ghana must remain a peaceful nation.