As public anger mounts about prices, jobs, and graft, the Finance Minister insists the economic recovery is coming
Known for starting meetings with prayers and peppering them with Biblical quotations, Finance Minister Ken Ofori-Atta has said it was quite perplexing to see the level of the cedi’s depreciation.
Pulse.com.gh takes a look at the number of times the government assured Ghanaians of rebooting its ailing economy.
The economy shall rebound – Ken Ofori-Atta reacts to cedi depreciation
Ken Ofori-Atta said the uncontrolled demand for imports and foreign exchange accounted for the reduction in the value of the cedi.
He was hopeful that the slide would be halted when the government reaches a staff agreement with the International Monetary Fund (IMF) for economic support this year.
According to Ken Ofori-Atta on Accra-based Asaase radio, « …It’s quite perplexing to see where it’s going, of course, people are importing for Christmas and maybe there’s a rush for that (the dollar) but I expect that once we also conclude with the Fund (IMF), that will lead to the fund’s disbursement early next year to do that, »
Adding that supplementary support from countries such as Germany and France would provide the country with the funds needed to halt the slide of the cedi.
« The support we are getting from countries like Germany and France, we are confident that we will get the resources needed, so we really would want people to know not to panic or be rushing to put pressure on the currency, I think it’s unnecessary and we are in good shape ».
Presenting the 2023 Budget in Parliament, the finance minister stated that the reduction in the value of the cedi is occasioned by a rush for dollars for the import of Christmas goods.
“The demand for foreign exchange to support our unbridled demand for imports undermines and weakens the value of the cedi. This contributed to the depreciation of the Cedi which has lost about 53.8% of its value since the beginning of this year, compared to the average 7% annual depreciation of the Cedi between 2017 and 2021.”
Mr. Ofori-Atta, however, mentioned that the Bank of Ghana will continue to monitor inflation developments and respond appropriately to contain price pressures.
According to him, the Monetary Policy Committee will focus on using the monetary policy rate to, among others, contain inflationary pressures.
Akufo Addo assures Ghanaians’ economic restoration
President Nana Addo Dankwa Akufo-Addo has assured of his government’s determination to fix the challenges facing the country’s economy.
According to him, the New Patriotic Party has competent men and women, the program, and the goodwill of the people to get things done.
Akufo Addo in his recent national address said securing the IMF bailout will support the implementation of our Post COVID-19 Program for Economic Growth and additional funding to support the 2023 Budget and development program.
This he said will give further credence to the measures the Government is taking to stabilize and grow the economy, as well as shore up our currency.
He stated his high ambitions for the country, « To restore and sustain debt sustainability, we plan to reduce our total public debt to GDP ratio to some fifty-five percent (55%) in present value terms by 2028, with the servicing of our external debt pegged at not more than eighteen percent (18%) of our annual revenue also by 2028.
We are committed to improving the revenue collection effort, from the current tax-revenue to GDP ratio of thirteen (13%) to between eighteen and twenty percent (18-20%), to be competitive with our peers in the West Africa Region. The GRA is rolling out an extensive set of measures to support this enhanced revenue mobilization. All of us must do our patriotic duty, and support the GRA in this exercise.
We are aiming to restore and sustain macroeconomic stability within the next three (3) to six (6) years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor.
The economy will soon pick up – Bawumia
Vice president Mahamudu Bawumia also admitted Ghana’s economic downturn but promised that things will pick up soon.
He said it was important that African countries recognize the importance of intra-continental trade through the African Continental Free Trade Area (AfCFTA).
According to him, there are endless opportunities to explore, « There are a lot of opportunities and potential to realize,” he said.
Bawumia said the government’s measures being put in place to revive the economy shall stabilize the current economic turmoil.
“We are trying to deal with the issue in this context of very squeezed and tight budgets. On the monetary side, the central bank is trying to contain inflation through several interest rate increases. »
“Ultimately, you deal with this crisis by expanding your production. If it is a food crisis, then we need to increase food production,” he said.
Govt’s focus is to build a resilient economy – John Kumah
Deputy Minister for Finance, John Kumah has hinted that the government is pursuing various programs to make the transition to a low-carbon economy which is critical to combating climate change and building a resilient economy.
According to him, the focus of the government is to establish a domestic Green Bond Market in Ghana, implementing Article 6 of the Paris Agreement, engage the private sector to mobilize green investment, promote green private sector development, and harness skills and also knowledge of various players for addressing climate change.
Dr. Kumah made this known when he represented Finance Minister Ken Ofori Atta at the Private Investment for Climate Conference held in the Republic of Korea under the Global Climate Fund (GCF).
Ghana reached a preliminary, staff-level agreement to receive $3 billion under an IMF-extended credit facility program to bolster its finances and regain access to global capital markets.
Pulse
