The government of Ghana is urged to focus on implementing budget measures to enhance private sector growth. PwC Ghana’s Mr. Vish Ashiagbor highlights challenges in policy execution. Key areas of discussion include the growth and sustainability levy, limited agricultural funding, and the need for better dialogue between stakeholders. Government officials reiterate plans to support local enterprises and restructure the economy towards independence from imports.
The government of Ghana has been urged to prioritize the implementation of measures outlined in the budget to foster an environment conducive to business growth and enhance the private sector’s development. Mr. Vish Ashiagbor, Country Senior Partner at PricewaterhouseCoopers (PwC) Ghana, emphasized that challenges in policy implementation have hindered the private sector from fulfilling its potential as an engine of economic growth. He asserted that while the budget may be business-friendly, effective execution is crucial for future success.
Discussing the growth and sustainability levy, Mr. Ashiagbor advocated for increased dialogue between the government and the mining sector to reach a resolution. He recognized the mining sector’s concerns regarding levy increases and prolonged tenures impacting long-term investment returns. He emphasized the necessity for discussions to facilitate mutual understanding and derive solutions that benefit both parties.
Furthermore, he noted that the funds allocated to agriculture are relatively limited, which is perplexing given the government’s aim to position agriculture as a central growth pillar. Mr. Ashiagbor suggested that rather than direct investments in agriculture, the government should focus on creating an enabling environment, such as establishing agricultural zones and improving infrastructure, thereby allowing the private sector to flourish.
He reflected on various policies supporting agriculture, such as the promotion of agri-zones and industrialization transitioning from primary agriculture to agri-processing, highlighting the importance of a holistic ecosystem for agricultural development.
Mr. Seth Tekper, Presidential Advisor on the Economy, reiterated the government’s commitment to supporting local enterprises and emphasized ongoing support for the Exim Bank to facilitate value addition and bolster export growth. He acknowledged the importance of retaining more value locally to reduce dependence on imports.
Additionally, Mr. Goosie Tanoh, Advisor on the 24-hour Economy policy, stated that the government is restructuring the economy to lessen reliance on imported goods. He outlined the accelerated export development program aimed at addressing challenges in the agricultural sector, focusing on transforming the agricultural value chain to foster sustainable employment and long-term economic stability.
The PwC Post-Budget Analysis serves as a detailed review of the government’s proposed financial policies, fiscal measures, and their impacts across various sectors, businesses, and the general populace.
In summary, the effective implementation of budget measures is critical for private sector growth in Ghana. Enhanced dialogue between the government and sectors such as mining and agriculture is essential for addressing concerns related to sustainability levies and investment incentives. The overall strategy must include fostering an enabling environment for agriculture and local enterprises, reducing imports, and facilitating value addition through initiatives like the Exim Bank support and export development programs. Such actions promise to stabilize and invigorate the economy in the long term.
Original Source: gna.org.gh
