Finance Minister, Ken Ofori-Atta has presented government’s 2024 Budget Statement and Economic Policy in Parliament.
This presentation outlined strategies for revenue generation and policies to address current economic challenges.
Join us as we bring you updates of the Minister’s presentation to legislators today.
Parliament marks roll call
Some members of parliament, including Williams Okofo-Dateh, MP Jaman South, communicated to Speaker of Parliament Alban Bagbin, that they were present in the chamber on Tuesday, November 14; however, they had been marked absent. The speaker then directed the table office to take note and make the necessary corrections. Some issues brought to the speaker’s attention were the spelling of names and the VRA probe, which was not captured, among others.
Parliament pays tribute to former First Lady Theresa Kufuor
Members of Parliament have mourned the demise of former First Lady, Theresa Kufuor who died aged 87 on Sunday.
Theresa, the wife of former President John Agyekum Kufuor died at her home in Peduase on Sunday, October 1, 2023.
“Ghana has really lost a mother.”
“Madam Theresa Kufuor was an exemplary woman.”
Ofori-Atta arrives in Parliament to present the budget.
Speaker Alban Bagbin suspends proceedings for 10 minutes to allow Finance Minister join Members of Parliament in the chamber.
Finance Minister Ken Ofori-Atta moves for parliament to approve budget and submits statutory reports for 2023 Annual Report on Petroleum Funds, and the 2023 Report on the Utilisation of the African Union Levy.
Quoting Psalm 103.2, Finance Minister Ken Ofori-Atta expressed his immense gratitude to God, the Speaker, and Members of Parliament.
“Bless the LORD, O my soul: and all that is within me, bless his holy name. Bless the LORD, O my soul, and forget not all his benefits.”
Full text of 2024 budget here:
I. INTRODUCTION
- Right Honourable Speaker, Honourable Members of Parliament, on the
authority of His Excellency the President Nana Addo Dankwa Akufo-Addo and
pursuant to Article 179 of the 1992 Constitution of the Republic of Ghana and
Section 21(3) of the PFM Act 2016 (of ACT 921), I respectfully present to you
the Budget Statement and Economic Policy of Government for 2024 Financial
Year. - Mr. Speaker, I beg to move that this august House approves the Financial Policy
of the Government of Ghana for the year ending 31st December, 2024. - Respectfully, I also submit to this Honourable House the following statutory
reports:
i. The 2023 Annual Report on the Petroleum Funds, in line with Section 48
of the Petroleum Revenue Management Act, 2011 (Act 815), (as
amended); and
ii. The 2023 Report on the utilisation of the African Union Levies, pursuant
to Section 7 of the African Union Import Levies Act, 2017 (Act 952). - Mr. Speaker, this Budget Speech is an abridged version of the 2024 Budget
Statement and Economic Policy of Government. We have also developed a more
detailed update on sectoral performance in a ‘Volume II’ document. I request
the Hansard Department to kindly capture these documents as the Budget
Statement and Economic Policy of Government for the financial year 2024.
Immense Gratitude - Mr. Speaker, I stand here today to present the 2024 Budget, which seeks to
advance us on the path toward fiscal consolidation, macro stability and growth
that began a year ago. - Mr. Speaker, I first want to take the opportunity to express immense
appreciation to H.E the President for the privilege to present the national
Budget on his behalf over the past 7 years. More importantly I want to express
my profound gratitude to God for his grace, mercy and favour toward our
Nation. Together with the Psalmist, let us say “Bless the Lord, O my soul; And
2 - all that is within me, bless His holy name! Bless the Lord, O my soul, And forget
not all His benefits” [Psalm 103:1-2]. - Mr. Speaker, I also wish to express my deep appreciation to you, Right Hon.
Speaker, and the Hon. Members for their support over the years. We have not
always agreed, but we always eventually find common ground in the interest
of the Republic and we should this collaboration.
A Difficult Context - Mr. Speaker, almost a year ago on Thursday, 24th November, 2022, I presented
the 2023 Budget and, as always, gave an honest and forthright update on the
economy, highlighting the extent of the challenges facing our country. Indeed,
a month before, H.E. the President also pointed out that, never have so many
malevolent forces come together, in a perfect storm, to impact our lives so
dramatically. Key macroeconomic indicators then, were uninspiring. - Against that backdrop, I then presented Government’s plan of recovery,
focusing on:
i. restoring macro-economic stability;
ii. coordinating an equitable debt operation programme;
iii. ensuring that the vulnerable are well protected;
iv. negotiating a strong IMF programme;
v. a strong private sector growth agenda; and
vi. attracting significant green investments to promote growth. - Mr. Speaker, in two (2) out of the last 7 years (2020-2022) the Ghanaian
economy has faced challenges. The economy, growing at an average of 7
percent with a single-digit inflation, declining interest rates and a stabilising
currency, suffered unforeseen shocks like many other economies. GDP growth
slumped from 6.5 percent in 2019 to 0.5 percent in 2020 – as the lockdown
and closure of businesses and the ports had a devastating effect on the
economy, triggering a cost-of-living crises that has made lives difficult for the
Ghanaian people. Though bartered and bruised, we are not broken and our
resilience is manifesting.
3 - Mr. Speaker we also saw the damaging effects that the economic downturn
had on Ghana’s already stretched revenues. This was even made worse by the
additional expenditures that were required during the covid-19 Pandemic to
ensure that life and livelihoods were protected. - Mr. Speaker, 2020 was also in an election year. The first ever election in the
Fourth Republic with zero donor funding. However, Government’s sensitivity to
our people was remarkable: No lay-offs in the public service; salaries were
dutifully paid over the year; and free water and electricity for the entire
population was provided, especially for life-line consumers. Indeed,
Entrepreneurship was not ignored as GH¢600 million of CAPBuSS from GEA was
effectively deployed. - Mr. Speaker, permit me to clarify that the disruption to our macroeconomic
path over the last few years was not peculiar to Ghana. The global disruption
to supply chains, adjustment to new forms of work, and shifts in demand
produced some of the most cataclysmic effects on inflation and growth
worldwide. This set-off the worst form of global cost of living crises since World
War II. - In the US, inflation surged from a low of 1.8 percent in 2019 to 6.5 percent by
2022 and is currently at 3.7 percent. We have seen this reflect in interest rate
decisions by the US Federal Reserve and also in benchmark yields. The yield on
the 10-year US Treasury instrument is currently at 4.6 percent compared to 1.4
percent two (2) years ago. This is an economy whose currency is the global
reserve currency. We see similar trends in the Eurozone and also in the UK.
Inflation in the UK was 1.7 percent in 2019 and was recorded at 11.1 percent
in October 2022, a 41-year high.
Changing The Narrative - Mr. Speaker, in the Mid-Year Review, I informed this House that we had started
turning the corner. Today, it is evident that:
i. We turned the corner when inflation started declining from 54.1 percent
in December 2022 to 35.2 percent in October 2023;
ii. We turned the corner when, despite a 1.5 percent projected growth, the
economy galloped at a remarkable pace, and clocked an average of 3.2
percent growth in the first two quarters of the year;
iii. We turned the corner when the currency, which had been under severe
pressure over the past two years, depreciated by a modest 6.4 percent
cumulatively from February to date, compared to 53.9 percent over the
same period in 2022. The performance of the Cedi is also a reflection of
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the fact that confidence is back, revenues have improved, and that the
recovery is indeed real and is here to stay;
iv. We turned the corner when companies started going back to the job
markets to hire workers;
v. We turned the corner when the International credit rating agencies,
which have not been favourable to Ghana in recent years, started being
positive about our economy; and
vi. We turned the corner when the Banking industry started to record and
report a profit-after-tax growth of 43.8 percent (GH¢6.2 billion);
vii. We turned the corner when in record time we completed the IMF 1st
Staff Review of 6 Performance Criteria, 3 Indicative Targets and 3
Structural Benchmarks - Our task now and in the medium-term is two-fold: to maintain stability and to
keep on growing. We are determined to remain on this course of increased
growth, currency stability, and disinflation over the medium-term. Our future
growth prospects are certainly brighter. And I am confident that this ”Nkunim”
Budget will ensure that we boldly walk on a sustainable path toward creating
decent jobs and wealth for our people. For with national dedication, the Lord
will continue to give us treasures of dark places and hidden riches in secret
places. - Mr. Speaker, our promise to all stakeholders, in particular to the people of
Ghana is that, the Akufo-Addo Government is determined to maintain the
discipline, compassion, and creativity required to keep the economy stable and
maintain the robust growth.
Stability with Growth - Mr. Speaker, today, I accordingly present the 2024 Budget to set out the broad
medium-term policy framework underpinning our approach towards recovery
and stability with growth. Among other things:
i. It provides the pathway towards fiscal consolidation and macro stability;
ii. It sets out a new debt sustainability path after the excruciating Domestic
Debt Operations with after-shocks on the financial sector;
iii. It outlines the policy priorities underpinning our 5-year Growth Strategy
with focus on selected initiatives over the next 14-months;
iv. It comes just after the successful First Review of the 3-year US$3 billion
IMF-ECF Programme where we reached a Staff Level Agreement on
Ghana’s performance in meeting the 6 Quantitative Performance Criteria,
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2 out of 3 Indicative Targets, and 6 out of 7 Structural Benchmarks due
at the end of September 2023; and
v. It deepens our democratic development by prioritising resources for
institutions to support the conduct of the 2024 General Elections.
vi. It commits to funding existing projects in roads, rural electrification, rural
telephony, IPEP and arrears. - Mr. Speaker, the 2024 Budget is even more significant because we will cross
the GH¢1 trillion Gross Domestic Product (GDP) mark for the first time
in our economic history. Let me repeat, Mr. Speaker, Ghana’s economy under
President Akufo-Addo’s final year in office is projected to be valued over GH¢1
trillion in 2024 from the GH¢219.5 billion in 2016. - Mr. Speaker, with such a milestone ahead of us, Government is protecting, at
all cost, the foundation for sustained economic expansion. A foundation that
has been achieved through the sweat and patience of the Ghanaian people. We
pledge to protect this for all our people and especially for private sector growth.
And we shall do so by ensuring that the enabling factors are in place and
accessible to all. These will include reliable energy supply, stable Cedi, lower
inflation and lower interest rate regimes, access to private sector credit,
infrastructure provision, food security, national security, and inter-continental
market linkages through increasing active platforms such as the AfCFTA. - Mr. Speaker, fundamentally, this is a Government that is self-aware, reflective
and has been open throughout the process to incorporating citizens feedback
in preparing this Budget, and as in previous years, we have prioritised
stakeholder consultations. Consequently, we engaged with and obtained
valuable inputs from key stakeholders, including investors, traders, academia,
organised labour, civil society organisations, bankers, development partners,
faith-based organisations, and a cross-section of the leadership and other
honourable Members of Parliament. - We also launched the Ghana Mutual Prosperity Dialogue on the 2nd November,
2023, a new and innovative platform to deepen our collaboration and
partnership with the private sector. The platform aims to enhance the longterm competitiveness of Ghana and increase our attractiveness as a hub for
businesses on the continent. This will have a standing committee co-chaired by
MOTI/MoF and the Private Sector. - I want to assure our stakeholders that we have, as much as possible, reflected
the proposals and recommendations from these engagements in this Budget.
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There is much more to be done with the shared ideas and the Mutual Prosperity
Dialogues will be a robust and dynamic platform to inform policy.
Akosombo Dam Spillage
25.Mr. Speaker, in the last few months, we have been witnesses to the devastating
impact of the Akosombo Dam spillage. This follows excessive rainfall recorded
in several parts of the country. To preserve the structural integrity of the dam,
the Volta River Authority commenced controlled spilling on 15th September, - This led to the flooding of downstream communities in parts of the Volta,
Eastern, and Greater Accra regions. The heavy rainfall also caused flooding
upstream of the Akosombo dam, and impacted communities in the Savanna,
Oti, and Bono-East Regions.
26.Government through VRA, NADMO, and various agencies under the 13-member
high level inter-ministerial committee, (comprising of the Ministries of Energy,
Finance, Local Government, Environment, Interior, Health, Sanitation & Water
Resources, Defense, Roads & Highways, Education, Information, Health, and
Gender) have subsequently provided various forms of support to the impacted
communities. This support included food and related items, drinks, mattresses,
mosquito nets and coils, clothes, baby food and diapers, sanitary pads, treated
water services and storage tanks, solar lamps, sanitation services, restoration
of utility services, and some social infrastructure.
27.Mr. Speaker, the visit of the officials of the Ministry of Finance and myself, in
collaboration with VRA, to the victims of the Akosombo Dam Spillage in Mepe
was truly revealing and sobering. Indeed, we empathise with the families that
have been affected and displaced by the spillage. We met victims, townsfolks,
children, the chiefs and of course Honourable Okudzeto.
28.Mr. Speaker, Government has budgeted an amount of GH¢220 million to
support the relief phase for the communities affected by the Akosombo spillage
as well as floods upstream in the Oti, Savannah, and Bono-East Regions.
29.For the restoration phase, Government through the Ministry of Agriculture will
allocate additional resources to support the restoration of livelihoods.
30.In addition, the Ministry of Finance, after the visit was quickened to respond.
We have requested funding from the World Bank under the IDA Crisis Response
Window (CRW) to support the resettlement of the victims, restoration of
livelihoods, compensation and reconstruction of infrastructure in the affected
communities.
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31.Mr. Speaker, we recognise the place of climate policy and financing to help
address the long-term effects of climate change on victims of drought, flooding,
and other adverse weather events. Accordingly, the Ministry has applied to the
Global Shield Against Climate Risk Fund, an initiative launched by President
Nana Akufo-Addo and Chancellor Olaf Scholz during the COP 27 in Sham ElSheikh, to access some financial resources to support communities upstream
and downstream of the Akosombo Dam. - I convey the sincere appreciation of H.E. The President and the entire
Government to all groups and individuals who have empathised with, and
supported the affected families. It is in this same spirit that we must continue
to be grateful to God that no lives have been lost due to the devastating spillage
from the Akosombo Dam.
Investing for Transformation - Mr. Speaker, we have worked hard and invested significant resources. And
being sure of this knowledge, I can confidently assert that over the past 7
years: Every sector has been positively impacted. Every household has
been positively impacted by our social intervention programmes. And
Every region has also been positively impacted. Indeed, President AkufoAddo has deepened decentralised development by investing GH¢422.1 million
to create and resource six new administrative regions. The most in our history
since independence. - Consistent with our policy on preferential options for the poor, i.e. leaving no
one behind, we have been historic in enhancing social mobility and protected
the vulnerable in our society. In this regard, we have since 2017:
i. Improved access to quality SHS education for about 5.7 million
Ghanaians by investing GH¢8.4 billion in the future of our next
generation;
ii. Increased enrolment and learning outcomes of 3.8 million pupils by
investing GH¢3.6 billion in the School Feeding Programmes;
iii. Reformed the NHIS to improve and expand health service delivery to 16
million Ghanaians.
iv. Supported foundational education of over 6 million pupils by investing
GH¢248.5 million as Capitation Grants; and
v. Improved the quality of life of about 350,000 Ghanaian households
under the LEAP by investing GH¢1.2 billion. - Mr. Speaker, we made all these investments into social mobility, not just
because it was the right thing to do morally, but also because we believe it is
economically essential to uplift and extend opportunities to every Ghanaian
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household. We are confident that the record high investments we have made
and continue to make over these seven years in preparing our children for a
brighter future will significantly transform our society, especially by tackling the
root cause of poverty that has afflicted many families from generation to
generation. Mr. Speaker, having a child pursuing a university degree is no more
a purview for the rich but for all strata of our society. - Mr. Speaker, we believe it has been seven years of grace and positive impact.
We are determined to do more to boost the capacity of the private sector to
expand productivity and create jobs. In the past 7 years, we have:
i. Invested GH¢32.7 billion to keep the lights on and support the growth
of businesses;
ii. Invested GH¢25.3 billion to facilitate the repositioning of the financial
sector and enhance its ability to assist business operations. To date, the
Development Bank Ghana has facilitated GH¢1 billion in competitive
financing for the private sector, and GIRSAL continues to mitigate risks
in the agriculture sector;
iii. Supported 100,000 young graduates to secure workplace experience
and employment by investing GH¢2.4 billion in NABCO;
iv. Invested GH¢7.1 billion to build road and transport infrastructure to
improve connectivity and productivity;
v. Invested GH¢541.5 million in 169 1D1F enterprises to scale-up valueaddition and provided 140,000 additional jobs; and
vi. Created over 2.3 million jobs in the private and public sectors
(approximately 900,000 in the private sector and 1.4 million in the public
sector). - Mr. Speaker, capital spending is equally important to the future of our country,
consequently we mobilised and deployed resources to:
i. Expand the railway network, including connecting Tema to Mpakadan to
promote trade on the Eastern Corridor;
ii. Construct 12 fish landing sites and two (2) fishing harbours at a cost of
GH¢19.5 million to promote the fishery-based livelihoods of our coastal
folks;
iii. Improve community infrastructure by investing GH¢2.2 billion into over
2,000 projects under the IPEP initiative;
iv. Promote inner city development by spending GH¢190.3 million under the
Zongo Development Fund; and
v. Expanded and improved the road network by investing about GH¢16
billion. Recording the most kilometers of roads and interchanges done
in our history.
9 - Mr. Speaker, we also invested GH¢1.7 billion in the National Identification
Scheme to ensure that 17.5 million eligible Ghanaians acquire security-sensitive
ID Cards. This has laid the foundation for a prosperous future where
digitalisation provides more convenience, introduces an added layer of
efficiency in delivering public services, and enhances our ability to safeguard
our national interests. - Mr. Speaker, I want to stress at this juncture that GHANA HAS PAID ITS DUES,
HAS TURNED THE CORNER, AND GETTING BACK ON TRACK. Despite these
successes, we have to do more to reinforce our stability and guarantee decent
jobs with good pay for the young people. As such, through the 2024 Budget,
we will deliver even more investment across the real sector to place our
economy on a firm growth trajectory that will create more jobs, safeguards our
climate prospects and deeply entrench Ghana as the seed country for Africa’s
development renaissance. - Mr. Speaker, we will continue to invest in on-going projects, and on the external
front, we will conclude negotiations with the Official Creditor Committee to
ensure that work on eligible externally funded projects resume. - We will, through the Ghana Mutual Prosperity Dialogue, be intentional about
collaborating with the private sector and our development partners to support
local businesses attract FDI and enhance the economic prospects of our people. - Indeed, given the potential to upscale and the multiplier effects that our small
and medium-sized businesses possess, Government intends to scale up support
to young entrepreneurs and fledgling businesses, with a singular aim to create
sustainable jobs across all communities. In this view the Ministry has teamed
up with MIDA and in committing GH¢1 billion to ensure that our Enclave project
for import substitution is successful. - Mr. Speaker, I am happy to announce that YEA is about concluding negotiation
with CCI, the business process outsource (BPO) operator in sub-Saharan Africa
for the establishment of a call centre that can see the direct creation of 20,000
local jobs for our young graduates. Office space has already been secured. Our
goal is to realise Ghana’s potential to become a global BPO powerhouse,
employing over 250,000 Ghanaians over the next few years. Ultimately, our
ambition remains to build an entrepreneurial nation and create an additional
minimum of 1 million jobs for the Ghanaian youth over the near-term. We have
done this before with 2 million jobs in years, but we must move faster.
10 - Mr. Speaker, we are also positioning a generation of Ghanaians to secure our
leadership in the global arena. Today, our country hosts the headquarters of
the AfCFTA. We also have a privileged position in leading the climate change
charge. As the agreed host of the Climate Vulnerable Forum (CVF) Secretariat,
we are galvanising the coalition of 68 nations and 1.7 billion people to shape
the climate discourse and secure resources for a just energy transition. - Mr. Speaker, that is the promise of this Budget. And we will keep our eyes
firmly fixed on the future and build lasting prosperity for this and the next
generation. Mr. Speaker, as members recall, we came into government in 2017,
in a period of despondency and meagre resources of 2 fish and 5 loaves. Today,
we can only marvel at how far the Lord has multiplied our resources. - I will now proceed to update the House on the macro-fiscal performance of the
economy.
II. GLOBAL ECONOMIC DEVELOPMENTS AND OUTLOOK - Mr. Speaker, global economic recovery remains sluggish primarily due to a
confluence of setbacks, including the lingering effects of supply-chain
disruptions and geopolitical events, and the increasing cost of living across
many economic blocs. The disruptions in energy and food prices, and efforts to
combat record-high inflation through tightening global monetary policies, have
considerably slowed down economic activity globally. - According to the International Monetary Fund’s October 2023 World Economic
Outlook (WEO), global economic growth is anticipated to decelerate from 3.5
percent in 2022 to 3.0 percent in 2023 and, at best, to 2.9 percent in 2024.
These projections are noticeably lower than the pre-pandemic historical
average of 3.8 percent from 2000 to 2019. Projections of 3.1 percent global
growth over the medium -term are the lowest in decades, and the prospects
for countries to achieve higher living standards are rather bleak. - Mr. Speaker, the IMF’s October 2023 Regional Economic Outlook for SubSaharan Africa indicates that the contagion effects of developments within the
region have resulted in a projected slowdown in the region’s growth for the
second year in a row to 3.3 percent in 2023, from 4.7 percent in 2021 and 4.0
percent in 2022. The region is, however, expected to recover in 2024, with
growth bouncing back to 4.0 percent, propelled by a pickup in four-fifths of the
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countries in the region, spearheaded by relatively strong performances in nonresource-intensive countries. - Global inflation (CPI-based average annual) is expected to gradually decline
because of monetary tightening and declining international commodity prices.
Global inflation is projected to fall from its peak of 8.7 percent in 2022 to 6.9
percent in 2023 and further 5.8 percent in 2024. - Mr. Speaker, in Sub-Saharan Africa, inflation is decreasing, albeit still at
historically high levels. According to recent available data, over 40 percent of
countries have consistently witnessed a decline in inflation for at least two
months. On average, countries with flexible exchange rate regimes have
experienced stronger inflation pressures compared to countries operating fixed
exchange regimes. As of July 2023, nearly one-third of the region’s economies
still had inflation rates in double digits. Inflation in SSA is anticipated to rise
from 14.5 percent in 2022 to 15.8 percent in 2023 before it drops to 13.1
percent in 2024. - Mr. Speaker, Macroeconomic imbalances are also improving, evidenced by
falling inflation in most parts of the region. However, a slowdown in reform
efforts, a rise in political insecurity within the region, and external downside
risks (including China slowing down) could undermine growth.
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III. MACROECONOMIC PERFORMANCE FOR JANUARY TO SEPTEMBER
2023
Overview Of Macroeconomic Performance (Q1-Q3 2023) - Mr. Speaker, please permit me to present macroeconomic performance for the
first three (3) quarters of 2023 within the context of the targets that were set
in the 2023 Mid-Year Fiscal Policy Review. Before I proceed, it is important I
restate the targets we set in the 2023 Mid-Year Fiscal Policy Review. These
include:
i. Overall Real GDP growth of 1.5 percent;
ii. Non-Oil Real GDP Growth rate of 1.5 percent;
iii. End-period inflation of 31.3 percent;
iv. Overall Balance (commitment) of -5.7 percent of GDP;
v. Primary Balance (commitment basis) of -0.5 percent of GDP; and
vi. Gross International Reserves (Excluding oil funds, encumbered assets,
and pledged assets) sufficient to cover at least 0.8 months of imports of
goods and services by end-2023. - Mr. Speaker, provisional macroeconomic data on the performance of the
economy for the period Q1-Q3 2023 demonstrated Government’s relentless
commitment to keep the corner turned. The IMF rightly described Ghana’s
recent macroeconomic performance in the first review as “compelling
performance”. Honorable Members may wish to refer to the IMF’s Press Release
numbered (PR23/339) and dated 6th October, 2023 for this update. - As I indicated during the 2023 Mid-Year Fiscal Policy Review, the prompt
deployment of strong fiscal and monetary policy measures largely accounts for
the continued macroeconomic stability and economic recovery. Growth in 2023
has been more resilient than earlier expected, inflation has been on the decline,
the fiscal and external balances have improved, and the exchange rate has
stabilised. - Mr. Speaker, Government introduced the Gold-For-Oil (G4O) Policy in 2022.
The Policy, which leverages the Bank of Ghana’s domestic gold purchase
programme was intended to provide foreign exchange financing for the
importation of petroleum products and help reduce demand for US dollars from
the Bulk Import Distribution and Export Companies (BIDECs) who would have
otherwise gone to the market to source forex for the importation of petroleum
products.
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57.Since then, under the gold for reserves programme, the Bank of Ghana has
purchased a total amount of 17.89 tons (US$1,140m) of gold to boost its gold
reserves. In addition, under the G4O programme, 23 cargoes (circa 800,000
metric tonnes) of Gasoline and Gasoil, equivalent to 30 percent of national
consumption, have so far been imported. The G4O Programme has significantly
contributed to the stabilisation of the cedi/dollar exchange rate (GH¢17 in
November 2022 to GH¢12 in November 2023 to the dollar) leading to a
reduction in the ex-pump price of diesel from GH¢23 per litre to GH¢12 per
litre.
58.The plan is to scale up the programme to cover 50 percent of national
consumption. These interventions have boosted gross reserves of the Bank of
Ghana and helped reduced foreign exchange pressures emanating from BIDECs
by reducing their dependance on the foreign exchange interbank market
thereby leading to a more stable cedi and ex-pump petroleum prices this year. - Mr. Speaker, I will now update the House on the performance of our
macroeconomic indicators:
i. Real GDP growth averaged 3.2 percent in the first half of 2023 compared
to 2.9 percent in same period in 2022, signaling a strong rebound.
Robust growth in the Services (avg. 6.3%) and Agriculture (avg. 6.2%)
sectors were the key drivers. It is instructive to note that the average
growth of 3.2 percent for the first two quarters of 2023 is higher than
the 2023 revised growth target of 1.5 percent.
ii. Price developments indicate that inflation is on a declining path in
response to ongoing fiscal consolidation, appropriate tightening of
monetary policy, and relative stability in the exchange rate. Headline
Inflation declined by 16 percentage points, from 54.1 percent in
December, 2022 to 38.1 percent in September, 2023. Core inflation has
also declined sharply from 53.2 percent in December 2022 to 39.0
percent in September 2023. Just yesterday, when I was preparing to
come here, the Ghana Statistical Service announced that the inflation for
October 2023 is 35.2 per cent.
iii. The Cedi has stabilised against the US dollar since early 2023 with a
year-to-date, cumulative depreciation of 25.7 percent compared to 54.1
percent over the same period in 2022. Specifically, the cedi has only
depreciated by 6.4 percent on cumulative basis since February 2023
compared to 53.9 percent over same period in 2022. The stability of the
Cedi largely reflects the positive impact from the restoration of economic
activity, including robust economic growth, improvement in the current
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account position, improvement in forex liquidity following IMF ECF
inflows, Bank of Ghana’s domestic gold purchase programme, and
reduced speculative FX speculative demand as market confidence
rebounds.
iv. Gross International Reserves (GIR) as at September 2023 stood at
US$5.0 billion (2.3 months import cover) compared to US$6.3 billion (2.7
months of import cover) at end-December, 2022. We are yet to reflect
IMF/WB and Cocoa syndication of approximately $2 billion by year end.
v. The current account turned positive at 1.1 percent of GDP at end-June
2023, a monumental turnaround from the deficit of 2.1 percent of GDP
at end-December 2022. Likewise, the trade balance improved to a
surplus of 2.6 percent of GDP as of end-August 2023, from 0.7 percent
of GDP surplus at end-December 2022.
vi. Though interest rates moderated from December 2022 to the first
quarter 2023, they picked up again as T-bills remained the key debt
instrument in the debt market after the DDEP. For instance, the 91-day
Treasury declined from 35.5 percent in December 2022 to 18.5 percent
in March 2023, but increased to 29.8 percent as of Monday, 13th
November, 2023.
vii. The Overall budget deficit on commitment basis as of end-August 2023
was a deficit of 3.0 percent of GDP, outperforming the targeted deficit
of 4.6 percent of GDP. The outturn largely reflects improvement in
revenue mobilisation and slower execution of expenditure. The
corresponding primary balance on commitment basis was a deficit of 0.7
percent of GDP, also outperforming the target surplus of 0.9 percent of
GDP.
viii. Public debt accumulation has slowed down significantly, as Government
continued to consolidate its public finances, and also reflects the impact
of the domestic debt exchange programme, and the ongoing external
debt restructuring. Total public debt has declined from 73.1 percent of
GDP at the end of 2022 to 66.4 percent of GDP as of September, 2023.
The completion of external debt restructuring is expected to further
improve Ghana’s debt situation.
Fiscal Developments
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Summary of Fiscal Performance January-August 2023 - Mr. Speaker, the 2023 fiscal framework was revised during the 2023 Mid-Year
Fiscal Policy Review to reflect updated macro-fiscal developments and align
with the fiscal adjustment path under the IMF-supported PC-PEG path. - Mr. Speaker, the fiscal performance for the first eight months of the year, using
provisional data, shows significant progress toward a stronger fiscal
consolidation. More specifically:
i. Total Revenue and Grants was GH¢79.1 billion (9.3 percent of GDP), 2.8
percent lower than the programmed target of GH¢82.2 billion (9.6
percent of GDP);
ii. Total Expenditure (Commitment) was GH¢104.6 billion (12.2 percent of
GDP), 14.1 percent lower than the target of GH¢121.8 billion (14.2
percent of GDP);
iii. Primary Expenditure (Commitment) was GH¢84.7 billion (9.9 percent of
GDP), 6.0 percent lower than the target of GH¢90.1 billion (10.5 percent
of GDP);
iv. Primary Balance (Commitment) was a deficit of GH¢5.5 billion (0.7
percent of GDP) compared to the target deficit of GH¢7.9 billion (0.9
percent of GDP);
v. Overall Fiscal Balance (Commitment) was a deficit of GH¢25.4 billion (3.0
percent of GDP) compared the target deficit of GH¢39.6 billion (4.6
percent of GDP); and
vi. Overall Fiscal Balance (Cash) was a deficit of GH¢26.1 billion (3.0 percent
of GDP) compared the target deficit of GH¢44.6 billion (5.2 percent of
GDP)
IV. 2024 AND MEDIUM-TERM OVERALL MACROECONOMIC TARGETS - Mr. Speaker, based on the overall macroeconomic objectives and the mediumterm targets, the following macroeconomic targets are set for the 2024 fiscal
year:
i. Overall Real GDP growth of at least 2.8 percent;
ii. Non-Oil Real GDP growth of at least 2.1 percent;
iii. End-Period inflation rate of 15.0 percent;
iv. Primary Balance on Commitment basis of a surplus of 0.5 percent of
GDP; and
v. Gross International Reserves to cover not less than 3.0 months of
imports.
Fiscal Sector in 2024 and the Medium Term
16 - Mr. Speaker, the 2024 and medium-Term fiscal framework has been prepared
in line with the objectives and policy priorities of our 3-year IMF-Supported PCPEG. The Primary Balance on commitment basis is the fiscal anchor we are
using to assess our fiscal effort. Over the medium-term, we plan to improve
the primary balance (commitment) from a deficit of 4.3 percent of GDP in 2022
to a deficit of 0.5 percent of GDP in 2023. The primary balance is expected to
improve further to a surplus at 0.5 percent of GDP in 2024 and to 1.5 percent
of GDP from 2025 onwards.
Resource Mobilisation for 2024 - Mr. Speaker, Total Revenue and Grants is projected at GH¢176.4 billion (16.8
percent of GDP) and is underpinned by permanent revenue measures largely
Tax revenue measures amounting to 0.9 percent of GDP.
Resource Allocation for 2024 - Total Expenditure (commitment) is projected at GH¢226.7 billion (21.6 percent
of GDP). This projection reflects a reduction of 6.1 percentage points of GDP in
total expenditures (commitment basis) relative to the outturn in 2022. This
large decrease comes from the combination of fiscal consolidation efforts of 4.9
percentage points of GDP, reflecting an adjustment in revenue by 1.0
percentage point and primary expenditure by 4.0 percentage point of GDP. The
potential interest rate saving from the ongoing external debt operation will
further bolster public finance sustainability.
Budget Balances and Financing Operations for 2024 - Mr. Speaker, based on the estimates for Total Revenue & Grants and Total
Expenditure (including arrears clearance), the overall Budget balance to be
financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9 percent of GDP.
The corresponding Primary balance is a deficit of GH¢5.9 billion, equivalent to
0.6 percent of GDP.
Revenue Measures
Property Rates - Mr. Speaker, the Ministry of Finance, acting through the Ghana Revenue
Authority (GRA) as per Section 4 of the Ghana Revenue Authority Act, 2009
(Act 791), introduced the property rate reform project. The objective was to
develop a unified common platform capable of billing, collecting, and reporting
property rates nationwide.
17 - The statistics highlight the impact of this initiative. The number of billable
properties has seen a substantial increase, with a pre-2023 count of 1.3 million
properties escalating to 12.42 million representing an 856 percent surge in
properties identified that can now be properly billed. Similarly, the identification
of registered persons and entities associated with billable properties has
increased by 831 percent, from 186,542 to 15.68 million. - Bills are currently available online for properties that have been successfully
identified. - Despite these achievements, the initiative has encountered some challenges
thus making it difficult for the relevant bodies including the Metropolitan,
Municipal and District Assemblies to have access to their share of the property
rate collections on time. - Mr. Speaker, to address these challenges, Government is reviewing the overall
structures and processes to determine the optimal way forward. In the interim,
Districts will resume collection until these challenges are resolved.
Tax Reliefs - Mr. Speaker, our approach to tax policy since 2017 was to give significant relief
to the private sector until expenditure pressures from 2020 required a more
aggressive approach. It is important to note that in the short-term, fiscal
sustainability requires that we improve our tax ratios significantly otherwise,
our long-term competitiveness will be eroded. As we all know, our country’s 13
percent tax-to-GDP ratio is far below our peers. Our target is 18-20% and we
are on course. - In that regard, it is difficult to implement all the structural reforms and tax
reliefs needed to immediately lower and/or eliminate certain tax handles.
However, I assure this August House, that we have heard, we believe in lower
taxes for industry, and we are working at this aggressively with the GRA and
to be cemented with the standing committee of the Mutual Prosperity Dialogue. - Mr. Speaker, further to the above, the following reliefs have been prioritised for
implementation:
i. Extend zero rate of VAT on locally manufactured african prints for two
(2) more years;
ii. Waive import duties on import of electric vehicles for public
transportation for a period of 8 years;
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iii. Waive import duties on semi-knocked down and completely knocked
down Electric vehicles imported by registered EV assembly companies in
Ghana for a period of 8 years;
iv. Extend zero rate of VAT on locally assembled vehicles for 2 more years;
v. Zero rate VAT on locally produced sanitary pads;
vi. Grant import duty waivers for raw materials for the local manufacture of
sanitary pads;
vii. Grant exemptions on the importation of agricultural machinery
equipment and inputs and medical consumables, raw materials for the
pharmaceutical industry;
viii. A VAT flat rate of 5 percent to replace the 15 percent standard VAT rate
on all commercial properties will be introduced to simplify administration. - To address the negative externalities of plastic waste and pollution,
Government will review and expand the Environmental Excise Duty to cover
plastic packaging, and industrial and vehicle emissions. - Mr. Speaker, the Stamp Duty Act, 2005 (Act 689) has not been reviewed since
its enactment in 2005. To realign the rate with current economic realities,
Government, in 2024, will review the rates and fees for stamp duties. The bands
subject to ad valorem taxes will be expanded while the specific rates will be
reviewed upwards. - A simplified tax return will be introduced as a means of promoting voluntary
compliance as part of the modified taxation scheme for individuals in the
informal sector. This approach will make it easier for taxpayers to fulfil their tax
obligations to the State. - Mr. Speaker, the Tripartite Committee has concluded negotiations on the
National Daily Minimum Wage. The tax-free portion of the Individual Income
Tax rates will accordingly be adjusted to take care of the change. Government
recognises the constraints our medical personnel face in providing health care
for our citizens. With the passage of the Exemptions Act, Government will
engage the Ghana Medical Association on waivers for importation of vehicles
to ease the transportation burden of our doctors. This policy will enable them
to deliver quality and timely healthcare. - Mr. Speaker, as a Government, we have always been committed to protecting
the quality of life of our people. Total Wages and Salaries for workers has
increased from GH¢14.7 billion in 2016 to GH¢37.5. All workers were paid full
wages and salaries and on time, even when revenues plummeted during the
COVID-19 Pandemic. In the difficult economic challenges, we paid 15 percent
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Cost of Living Allowance (COLA) for 6 months in 2022 to cushion 949,122
workers, some 50 percent more than 2016.
Expenditure Measures
Spending Arrears Clearance and Prevention Strategy - Mr. Speaker, as reported in the 2023 Mid-Year Fiscal Policy Review of the 2023
Budget Statement and Economic Policy of Government, a Spending Arrears
Clearance and Prevention Strategy was developed and approved by Cabinet for
implementation. This is part of the measures to achieve the objective of
bringing public finances back on a sustainable path through improved efficiency
in public spending. - To clear the existing stock of arrears, the Ghana Audit Service has begun the
verification and validation of the arrears identified as at end-December 2022
before payments are made. - Mr. Speaker, to prevent the accumulation of new arrears, Government has put
in place the following measures to enhance commitment controls and prevent
the accumulation of arrears.
i. Alignment of the quarterly budget allotments with cash flow forecast and
tighten the use of allotments as a control on the GIFMIS rather than the
budget starting with the 2024 budget.
ii. MDAs will be required to revise their cash plans on a quarterly basis to
reflect the allotments received over the year and remaining
requirements. The Cash plan module on Oracle Hyperion will be
reconfigured by December 2023 after completing all stakeholder
engagements, in line with the system’s functionalities, which will be
deployed to the various MDAs. MDAs will be trained on how to use the
system to enable them to update their cash plans quarterly. This will
ensure that MDAs are able to revise their cash plans within the window
provided.
iii. Standardize contracts for public works to ensure flexibility in budget
execution.
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iv. Review standard tender documents to include clauses that make the
award of the contract null and void if not supported by GIFMIS generated
PURCHASE ORDER.
v. All MDAs will be required to use GHANEPS for all Procurements to
enhance transparency and efficiency in the procurement of goods,
works, consultancy, non-consultancy, and asset disposal.
vi. Improve Budget Execution practices by undertaking the following:
a. Approval of MDAs commencement requests to be done within the
first quarter of any fiscal year to allow MDAs sufficient time to
complete procurement and payment processes before end of
year;
b. Enforcement of the use of GIFMIS for all transactions to prevent
unbudgeted expenditure.
vii. Internal Audit Agency to ensure that public officers within covered
entities adhere to the legal and regulatory principles governing public
financial management in the discharge of their duties. - All public officers, particularly Principal Spending Officers of covered entities will
be held to the strict application of the specified in Sections 96 to 98 of the PFM
Act. - In view of this, the Ministry of Finance has established a Compliance Desk as
part of the internal audit function of the Ministry. The desk will closely track the
tender advertisements from Covered Entities to ensure that they have allotment
and are on the GHANEPS. In the event that such Covered Entities are not
compliant, the desk will immediately seek explanation and refer such infractions
under the PFM to the Attorney-General through the Legal Directorate of the
Ministry for advice or penal actions. - Mr. Speaker, the Public Financial Management Act, 2016, Act 921, was passed
to regulate the financial management of the public sector within a
macroeconomic and fiscal framework. This law sets out stringent accounting,
audit, and reporting requirements for public funds.
86.As the First Finance Minister to oversee the implementation of this critical law,
I can confidently say that this Government has been the most transparent and
accountable in our history. Over the past seven years, I have laid before this
House, 55 statutory reports to fulfil the provisions of this law. These include:
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i. the Annual Report on the Petroleum Funds; and
ii. Report on the Utilisation of the African Union Levies. - We have also learnt key lessons from the helpful feedback from our
stakeholders. Most of these formed the core of the macro-critical reforms being
implemented under IMF-back PC-PEG. - Mr. Speaker, as the PC-PEG enters the second year, we plan to assess progress
and deepen our collaborations for reforms at a PFM Summit to be organized by
April, 2024. We encourage our Development Partners to join us on this journey.
Real Sector in 2024 and the Medium Term - In the real sector, we expect Overall Real GDP growth to increase from an
expected 2.3 percent in 2023 to 2.8 percent and reach 5 percent by 2027. This
yields an average growth rate of 4.3 percent over the 2024-2027 period. NonOil Real GDP is projected to slow down from an estimated 2.8 percent in 2023
to 2.1 percent in 2024 and pick up to 5 percent by 2027 giving an average
growth rate of 4.1 percent over the 2024-2027 period.
Monetary Sector in 2024 and the Medium Term - Mr. Speaker, the Bank of Ghana has maintained the tight monetary policy
stance to firm up the disinflation process. Among other measures, the Bank has
further raised the monetary policy rate by a cumulative 300 basis points (bps)
in the year to September 2023 to 30 percent. In the outlook, monetary policy
in 2024 and the medium-term will aim to regain price stability. - Inflation is expected to remain within the IMF programme’s Monetary Policy
Consultation Clause (MPCC) of 29.4 percent, with a symmetric band of 4.0
percent at the end of 2023, an end year target of 15% in 2024 and trend further
down to the medium-term target band of 8±2 percent by end-December 2025.
A tight monetary policy stance, favourable base drifts, relative stability on the
foreign exchange market, and a favourable food harvest are expected to
outweigh inflationary pressures over the near-term.
External Sector in 2024 and the Medium Term - In the outlook, the external sector’s performance will largely depend on the
conclusion of negotiations with the country’s external creditors. Also, the Bank
of Ghana’s policy thrust will remain focused on increasing external buffers
through sustainable means. The exchange rate is expected to remain stable
supported by continued progress with the implementation of the IMFSupported Programme, expected inflows from the cocoa syndication loan, the
second tranche of IMF loan, mining inflows, and the BoG’s continuation of the
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Gold-for-Oil Programme. The main risks to the external outlook include
increasing uncertainty about geopolitical tensions and volatility in commodity
prices.
V. UPDATE ON THE IMPLEMENTATION OF THE IMF-SUPPORTED PC-PEG - Mr. Speaker, the IMF Executive Board approved Ghana’s 3-year, US$3 billion
IMF-supported Post Covid-19 for Economic Growth (PC-PEG) on the 17th May,
2023 after the Government of Ghana secured a staff level agreement on the
Programme in December 2022. The Programme aims to:
i. restore macroeconomic stability and debt sustainability;
ii. build resilience through the implementation of wide-ranging and strong
structural reforms in key sectors of the economy; and
iii. lay the foundations for stronger and more inclusive and private sectorled growth, while protecting the poor and vulnerable. - Mr. Speaker, the IMF-supported PC-PEG is assessed semi-annually by the IMF
through an IMF staff review mission followed by final approval by the IMF
Executive Board. Disbursements under the Programme are tied to successful
completion of each review. The reviews assess our progress towards meeting
the Quantitative Performance Criteria (QPCs), Indicative Targets (ITs), and
Structural Benchmarks (SBs). - Mr. Speaker, Ghana’s first review commenced with the IMF fielding a mission
to undertake a staff assessment from 25th September to 6th October 2023. This
review covered the assessment of:
i. six (6) Quantitative Performance Criteria (PCs);
ii. one (1) Monetary Policy Consultation Clause (MPCC) for inflation;
iii. three (3) Indicative Targets (ITs); and
iv. nine (7) Structural Reform Benchmarks (SBs) that were due at the end
of September 2023. - Mr. Speaker, I am glad to inform this august house that based on the IMF’s
own assessment (at the staff level) after the first review, Ghana met:
i. All six (6) of the Quantitative Performance Criteria (QPCs). The QPCs are
a floor on net international reserves, ceiling on primary balance on
commitment basis, ceiling on contracting non-concessional
loan/guarantee, zero collateralized borrowing, and no accumulation of
external debt service arrears.
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ii. Two (2) out of the 3 Indicative Targets. The two ITs met are a floor on
social spending and a floor on non-oil public revenue. The IT on zero net
accumulation of payables was extended largely due to the ongoing
negotiations with Energy Sector IPP on legacy debt; and
iii. Six (6) out of the seven (7) Structural Benchmarks due end-September - The six SBs met are (a) preparation and publication of arrears
clearance and prevention strategy, (b) preparation and publication of
financial sector strengthening strategy, (c) preparation and publication a
strategy for review of earmarked (statutory) funds, (d) preparation and
publication of a medium-term revenue strategy, (e) a strategy for
indexation of LEAP benefits and (f) BoG to approve capital building buffer
plans for banks. The seventh SB on the preparation and publication of
an updated Energy Sector Recovery Plan which was expected to be
completed at the end of June 2023 was strategically completed and
published on the MoF website in October 2023. - Mr. Speaker, the outstanding performance of Ghana during the first (1st)
review paved way for Ghana to reach a Staff Level Agreement (SLA) with IMF
on the 6th October, 2023, a record five (5) months after the Programme was
approved in May 2023. - Mr. Speaker, on behalf of H.E. Nana Addo Dankwa Akufo-Addo, the President
of the Republic of Ghana, permit me to use this occasion to express our sincere
gratitude to the Right Hon Speaker, leadership of Parliament, and all members
of this august House for the immense role you played in the successful
implementation of the IMF-Supported PC-PEG under the first Review. - Mr. Speaker, we would also like to appreciate the contributions of key
stakeholders including, the Managing Director, Management and staff of the
IMF, The World Bank, the AfDB, and development partners who played diverse
roles in this journey. Mr. Speaker, we are equally grateful to the Council of
State, CSOs, Labour Unions, Employers Associations, AGI, FBOs, Think-tanks
and Research institutions, and all other stakeholders who played various roles
in the process. Let me note Labour’s remarkable composure and historic
agreement yesterday to ensure that our discussion with the Fund was not
derailed. Thank you
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VI. GROWTH STRATEGY - Mr. Speaker, the fiscal incentives and reliefs I announced previously are in line
with Government’s 5-year Growth Strategy, which was approved by Cabinet in
August 2023. This is to stimulate and sustain economic growth even as we
restore macroeconomic stability under the IMF-backed PC-PEG. - The first phase, which is a 14-month programme, essentially focuses on scalingup prioritised existing programmes and attracting Private Sector Investments
to deliver rapid results without significant demands on budgetary resources. - Mr. Speaker, the Growth Strategy prioritises key sectors of the economy,
including Agriculture, agri-business and aquaculture, trade, industry and export
promotion, tourism, as well as digitisation and technology. - The recently launched ‘Ghana Mutual Prosperity Dialogue’ will support this path
of growth. A permanent Steering and Technical Committee, co-led by the
Ministries of Finance as well as Trade and Industry and the private sector and
supported by our Development Partners, is being set up to drive this
collaboration for growth. - Mr. Speaker, last year, I discussed the enormous impact of the food imports
bill on exchange rate volatility and inflation. I made clear how unsustainable
the imports are and the need to change course. - The Growth Strategy therefore supports the implementation of interventions
that increases our capacity to produce, deepen value-chains, facilitate and
modernise storage facilities and increase the shelf-life of products. These
improvements are expected to help support exports, build forex exchange
buffers and reduce inflation.
Improving Agriculture Production and Productivity
Planting for Food and Job (PfJ) 2.0 - In seeking to change course in the Agriculture sector, the President in August,
2023 launched the Planting for Food and Jobs (PfJ) 2.0. By design, the PfJ 2.0
places greater emphasis on value chain approaches and focuses on
strengthening linkages between actors along eligible agricultural commodity
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value chains – broadly categorised into grains, roots and tuber, vegetables and
poultry. - The PfJ has a special focus on poultry to address the heavy reliance on imports.
Accordingly, Fifteen (15) anchor farmers and 500 out-growers in 5 regions
(Ashanti, Greater Accra, Bono, Bono East and Eastern regions) will be selected
to produce 65,000 MT of broilers in 2024. - Mr. Speaker, the significant shortfall between demand and domestic production
of vegetables requires urgent action, especially considering the impact of the
recent supply disruptions from the Sahelian region. - The engagements with Onion Producers and Importers prior to this 2024
Budget revealed the importance of developing an ‘Onion Index’ to track the
production, distribution, and consumption of the commodity. It emerged during
these engagements that in 2022, demand for onions was 314,337 MT, while
the local production was 178,492 MT. In addition, the national demand for
tomatoes in 2022 was estimated to be 1,257,348 MT, while local production
stood at 468,280 MT. These are two prominent vegetables in the Ghanaian
household. - Mr. Speaker, PfJ 2.0, therefore, seeks to improve supply and utilisation of highquality inputs, facilitate credit guarantees for Aggregators to procure improved
seeds, fertilizers, and pesticides and supply them on zero-interest credit terms
to vegetable farmers in the immediate and short-term. - Furthermore, the condition and capacity of existing warehouses will be
improved to enhance the condition and capacity in storing bumper harvest and
maintaining price stability. - Mr. Speaker, the Growth Strategy also aims to boost fish production, mostly
through increased focus on oceanic and inland earthen ponds. The goal is to
support fishermen, fish farmers, and fish processors in our coastal regions. The
interventions planned in this sub-sector include direct support for production,
distribution, and storage of fish as well as producing and supplying over
110,700,000 litres of Premix fuel using gasoline and condensate.
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Economic Enclave Projects - Mr. Speaker, we are complementing the Planting for Jobs (PfJ) 2.0 strategy by
also increasing support to private commercial agriculture under the Economic
Enclaves Project (EEP). - Towards this, priority has been given to securing and developing lands to offer
security of tenure for large scale agricultural investments. The focus on large
scale commercial agriculture is to harness the benefits of scale and scope of
economies, promote the adoption of technology for efficiency and
standardisation as well as support price stabilisation efforts. - As of December 2022, three enclaves in Kasunya (Greater Accra), Kumawu
(Ashanti) and Banda (Oti Region) were operational. Five (5) other enclaves are
planned in 2024 to promote value addition, integration, and deepening
aggregation and value chain systems to serve as economic ‘growth poles’. - The three operational EEPs will lead to production of 160,000mt of rice by the
end of 2024 over 110,000 acres of land in cultivation for the key staples. Private
sector actors investing on EEP will provide employment for the youths, with a
target of, at least, 5,000 jobs - Already, ten private sector actors have responded to the expression of interest
to predominantly act as anchor farmers on the developed lands. Government
will also pursue the interest expressed by other international private sector
operators to unlock investment and technology for the Economic Enclave
Projects. We are also using the EEP to leverage catalytic financing from key
partners including MasterCard and the African Development Bank. - To implement the Economic Enclaves at scale and speed, GHC 1 Billion
has been allocated to Millennium Development Authority (MiDA) to complement
the PFJ II. This funding will be dedicated to providing critical infrastructure,
including irrigation, canals, as well as clearing and developing land for private
Sector actors in the EEP. Other key interventions under the GhanaCARES
programme such as the completion of Foundry will benefit from this funding.
MiDA has a remarkable record from the implementing two Compacts under the
Millennium Challenge Corporation, one of which was agriculture and
agribusiness. They continue to demonstrate experience and ingenuity that will
accelerate the delivery of the growth poles to transform agriculture in this
country.
Digitisation
27 - Mr. Speaker, the Digital Youth Village (DYV) is a key initiative of the Ministry of
Communications and Digitalisation and University of Ghana to promote digital
entrepreneurship among the youth and serve as a bridge between academia
and industry. To date, the DYV project has completed the design, land
allocation, site clearance as well as securing an architect. Phase 1 of the DYV
project is expected to be completed before end-December 2024.
Trade, Industry and Export - Mr. Speaker, key operations under 1D1F, Free Zones, Export Promotion,
Strategic anchor Industries and Business Regulatory Reforms have been
prioritised under the growth strategy. Altogether, earnings from NonTraditional Exports are expected to increase to US$4 billion (2023) and US$4.8
billion (2024), from US$3.51 billion (2022). 271 licensed Free Zone Companies
are expected to increase earnings to US$2.19 billion in 2024), compared to
earnings of US$1.8 billion from 207 licensed Free Zone Companies in 2022.
Tourism - Mr. Speaker, Ghana remains the preferred tourist destination in the sub-region.
The steady stream of domestic and international tourists also requires
dedicated spaces in cities to drive a Night Economy and tourism. - As we promote ‘December in GH’ initiatives, we will also work towards
enhancing security and the lighting infrastructure. A Task Force, comprising
Public regulators and Private sector actors, has already been established to
drive the Night Economy initiative under a public private partnership
arrangement.
YouStart Programme - Mr. Speaker, on 14th November, 2022, (Exactly a year ago), Government
launch the YouStart Initiative as a direct response to the employment challenge
facing our country. Through this initiative, Government seek to create an
Entrepreneurial Nation by providing training, competitive funding, access to
market and technology to our youth. This is to cause a cultural shift and guide
your teeming youth into entrepreneurship by assisting them start, build and
grow their own businesses. - Mr. Speaker, a year on, the preparatory works have been completed. The three
components of the Initiative, YouStart District Entrepreneurship Program
(DEP), Commercial Program (CP) and the YouStart Grace program- have also
been developed and piloted successfully. On 20th September, 2022,
Government signed a Memorandum of Understanding with 11 Banks and the
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Ghana Association of Banker to support entrepreneurs gain access to capital to
enhance their businesses. The Ghana Association of Banks have worked with
us to train the Participating Financial Institutions on the program and have
completed the design of a technology platform to receive applications. The
National Banking College has also been engaged under the programme to train
beneficiaries on behalf of the participating banks. - Mr. Speaker, the Ghana Enterprises Agency (GEA) and the National
Entrepreneurship and Innovation Programme (NEIP) has been brought
together as a cohesive unit to co-lead the District Entrepreneurship component
of the YouStart. - Mr. Speaker, as October, 2023, a total of 23,695 beneficiaries comprising 5,183
males and 18,512 females had completed the Basic Level training by the GEA
under the YouStart Jobs and Skills project. Out of this number, 7,975
comprising 2,474 males and 5,501 females progressed and completed the
Intermediate Level training, with 4,514 beneficiaries comprising 1,679 males
and 2,835 females also progressing to the Advance Level. GEA has commenced
disbursement of grants to beneficiaries who have completed the Intermediate
and Advanced Levels. Evaluation of the grant proposals is currently ongoing. It
is expected that at least 5,000 of the 1st batch of beneficiaries would be
supported with startup grants. The NEIP has also trained a total of 2,000
beneficiaries under the Government of Ghana sponsored YouStart DEP. - Mr. Speaker, all is set to accelerate the implementation of YouStart in the 2024.
We are working with our partners, the World Bank, to secure a financing worth
US$150million. On our own, we are committing GHS 200 million to ensure that
more young persons are supported into entrepreneurship.
Ghana Integrated Aluminium Development Corporation (GIADEC) - Mr. Speaker, the Ghana Integrated Aluminium Development Corporation
(GIADEC), through their strategic partners, has completed the Mineral Resource
Estimate (MRE) Report that has been prepared in line with Joint Ore Reserves
Committee (JORC) standards. The results of the report indicate significant
bauxite quantities making the project a commercially viable one. - In 2024, the corporation along with their partners will undertake the drilling
and MRE for Project 3 and commence Valco retrofit and Project 2 mine
development. - Mr. Speaker, the Ghana Integrated Iron & Steel Development Corporation
(GIISDEC) has completed a strategic conceptual layout to guide growth,
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promotion, and development of the integrated iron and the steel industry. The
Master plan has been reviewed and given a seal of approval by KPMG and ready
for the industry. - Mr. Speaker, to ensure that various mineral discoveries and inferred deposits
of iron ore are commercially viable, a high-level Mineral Resource study has
been commissioned by GIISDEC working with its Private Partners. This capitalintensive activity has been offloaded to Ghanaian Private Partners to produce a
standard Bankable report at no cost to Government of Ghana. - This is to ensure that the Integrated Iron and Steel Industry (IISI) is not faced
with the continuous decline of domestic production and processing of metallic
minerals and the associated dependence on foreign supplies for our needs.
Enabling Growth - Mr. Speaker, key interventions to improve the business environment include:
i. Enacting the Business Regulatory Reform Bill to enhance the quality and
transparency of regulatory administration and establish a predictable
regulatory environment;
ii. Crowding-in private sector financing of $20 billion through Foreign Direct
Investments and enhanced Public-Private dialogues and Partnerships as
well a more coordinated and aggressive promotion of Foreign Direct
Investments; and
iii. Amendments to the GIPC Act has been completed and submitted to
Parliament. - Mr. Speaker, the Growth Strategy sets ambitious targets for easing access of
the domestic private sector, including medium and long-term finance at
competitive rates. Government will leverage the plans of the Development Bank
of Ghana (DBG), GIRSAL, the Venture Capital Trust Fund (VCTF), and the
Ghana Investment Infrastructure Fund (GIIF) to provide loans, partial
guarantees and venture capital to private entities with transformational and
strategic projects in Agriculture, Technology and Industry. - Mr. Speaker, Government intends to achieve its objectives through following
channels:
i. DBG: to increase the lending volume of the Development Bank, Ghana
(DBG) to GH¢2 billion, focused on medium and long-term lending for
commercially viable private sector projects. DBG will also provide partial
guarantees to reduce risk and attract more investment from the private
sector into manufacturing, ICT, and high-value services. Government will
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in addition support DBG fundraising of an additional $1 billion in 2024
and 2025.
ii. GIRSAL: Provide GH¢350 million partial risks guarantees to leverage
private sector participation in the agricultural sector and agri-business.
Relying on the GH¢350 million guarantee, banks will be able to provide
around GH¢700 million to the agricultural sector and agri-business.
GIRSAL guarantees help reduce banks’ risk perception of the agricultural
sector and encourage them to increase lending at slightly lower rates
and longer tenor.
iii. IFC: Government will pursue the negotiations for $500 million of
financing from the World Bank’s IFC, a partner in the Ghana Mutual
Prosperity Dialogue.
iv. Recapitalisation of Banks: Government and World Bank will recapitalise
the Banks through the Ghana Financial Stability Fund and Financial
Sector with over GH¢10 billion to enable aggressive financing of private
sector businesses. - Furthermore, the Venture Capital Trust Fund would commit an additional US$13
million. This follows the US$11 million the VCTF committed in 2023.
31
VII. GHANA’S DEBT RESTRUCTURING PROGRAMME - Mr. Speaker, debt sustainability concerns remain high, especially across
emerging economies. The International Monetary Fund (IMF) indicates that in
2020 – at the peak of the pandemic – the stock of global public debt as a share
of global GDP was 258 percent. Moreover, as of 2022, the stock of public debt
was 238 percent, 9 percentage points higher than in 2019. - To return to a path of debt sustainability, from a Debt to GDP ratio of 89%,
Ghana, in December 2022, commenced a difficult but necessary restructuring
programme covering both domestic and external debt. The goal is to achieve a
55% Debt to GDP ratio and 18% Revenue to GDP ratio over the medium term. - Mr. Speaker, Ghana completed the first phase of the DDEP in February 2023,
where circa GH¢82,994.51 million of old domestic notes and bonds were
exchanged for new bonds. These new bonds have longer maturities and
average coupon of about 9.1 percent, achieving a participation rate of about
84.9 percent. - In September 2023, an administrative reopening of the first phase was done,
of which GH¢4,013.65 million was tendered. The total exchanged amount was
GH¢87,008.16 million, with a participation rate of 90.7 percent. Mr. Speaker,
the second phase was launched in July 2023 and settled in September 2023. - Mr. Speaker, the DDEP has positively affected our domestic debt portfolio’s
costs and risk indicators. The weighted average interest rate for instance,
reduced from 21.2 percent at end-December 2022 to 12.7 percent at endSeptember 2023. Additionally, the Average Time to Maturity (ATM) improved
from 2.7 years at end-December 2022 to 6.2 years at end-September 2023. On
the total debt portfolio, the ATM improved from 8.4 years at end-December
2022 to 9.3 years at end-September 2023. - We anticipate that the completion of the external debt restructuring will
improve our debt trajectory, even more, to enable us reach our target landing
zone of 55 percent debt to GDP in present value terms by 2028. - Mr. Speaker, the external debt restructuring parameters comprise bilateral and
commercial debt (including Eurobonds). Consequently, on 13th December
2022, Ghana formally requested a debt treatment under the G20 Common
Framework for Debt Service Suspension Initiative (CF-DSSI).
32 - Ghana’s bilateral creditors, subsequently established the Official Creditor
Committee (OCC) on 12th May 2023, under the auspices of the Paris Club to
restructure the bilateral debt. Government, has already shared illustrative
scenarios with the OCC, which is co-chaired by France and China. - An agreement in principle on the restructuring parameters is expected to be
reached in the coming week. This will be formalised in an MOU between the
Government and the OCC. - Mr. Speaker, on our commercial debt (Eurobonds), we have received illustrative
proposals on the debt treatment scenarios from the two bondholder groups.
We are currently reviewing the illustrative proposals and expect to converge
towards a solution in compliance with the comparability of treatment principle.
We outlined broad parameters in our investor presentation of a haircut between
20% and 40%, a maximum 5% interest rate and maturity not to exceed 20
years. - It is envisaged that, in the coming weeks, extensive negotiations with both
groups will commence and ensure we achieve the targets set under the
IMF/World Bank Debt Sustainability Framework. We are hopeful of a year-end
resolution. - Mr. Speaker, the Financial Sector Strengthening Strategy (FSSS), which was
developed to mitigate the impact of the GoG debt operation on the financial
sector, provides for the design of the Ghana Financial Stability Fund (GFSF) as
a programme in the Ministry of Finance. It also aims to address outstanding
legacy issues following the 2017-2019 financial sector clean-up. - This Fund offers a solvency window consisting of two distinct sub-funds –
namely a US$250 million World Bank supported sub-fund targeted at qualifying
banks and SDIs; and a cedi equivalent of US$500 million GoG-funded sub-fund
that will help to recapitalise state-owned financial institutions as well as
potentially support other indigenously-controlled financial institutions to
improve their post-DDEP solvency. - Mr. Speaker, in addition, a provision of GH¢4 billion has been made in the 2024
Budget to address National Investment Bank (NIB), distressed SDIs, and other
outstanding legacy challenges in the financial sector. Notwithstanding the
ongoing litigation commenced by shareholders Blackshield Capital Management
Limited (formerly Gold Coast Securities Limited), the SEC will continue engage
the Official Liquidator and clients of the defunct Blackshield to reach a
33
consensus on a framework for a bailout intervention and an amicable resolution
of the impasse.
34
VIII. SECTORAL PERFORMANCE - Mr. Speaker, in the 2024 Budget, Government will build on the significant
investments that have been made to date, and promote its key interventions
covering social spending, infrastructure, governance, security and climate
change.
Social Spending
Free SHS and TVET - Mr. Speaker, the Government’s flagship Free Senior High School and TVET
Programme continues to create and expand access to secondary education in
the country. In a generation’s time, when we have a more educated population
which sustains social mobility and cohesion, we will appreciate the significance
of these decisions and investments. - In the year under review, we continued to support a total of 448,000 first year
SHS students; bringing the total beneficiaries for the 2022/2023 academic year
to 1.3 million students. In 2024, the implementation of this transformative
initiative will continue.
Capitation Grant - Mr. Speaker, Government continues to ease the financial burden on parents
and guardians in the access and provision of quality basic education. To this
end, we provided feeding grants for 7,500 students in Special Schools and
capitation grants to all public basic schools across the country. - Additionally, the registration fees of over 471,000 prospective candidates from
public JHS for the BECE were paid to guarantee that all candidates will sit for
the examination. Government will continue to provide opportunities for quality
basic education through the capitation grant in 2024.
Livelihood Empowerment Against Poverty (LEAP) - Mr. Speaker, support for beneficiaries of the Livelihood Empowerment Against
Poverty (LEAP) programme was sustained in 2023. Government invested about
GH¢298 million to support 350,000 extremely poor households. In 2024, the
Programme will improve the financing by 50% and will continue to provide
meals to more schools to enhance basic school enrollment.
National Health Insurance Scheme (NHIS)
35 - The National Health Insurance Scheme (NHIS) witnessed an expansion in
coverage, with 16 million active members as at September 2023 – representing
80 percent of the targeted population of 20 million. Efforts to integrate the
Ghana Card into the enrollment system are progressing steadily.
School Feeding - Mr. Speaker, under the School Feeding Programme, Government invested over
GH¢740 million to feed 3.8 million pupils, one hot meal a day in over 10,000
public basic schools. In 2024, the Programme will continue to provide meals to
enhance basic school enrollment.
Infrastructure - Mr. Speaker, our programme to improve accessibility and connectivity, as well
as safety along roads continues to be prioritised. We will conclude negotiations
with the Official Creditor Committee to ensure that work on eligible externally
funded projects resume. - However, the following projects are ongoing and are at various stages of
Completion:
i. Kumasi Lake Road and Drainage Extension project is completed;
ii. Reconstruction of Bechem-Techimantia-Akomadan road – is 71 percent
complete;
iii. Construction of the Flyover on the Accra-Tema Motorway from the
Flowerpot roundabout – is 60 percent complete.
iv. Phase 2 of the Tema Motorway Roundabout (including construction of
the 3rd tier of the interchange) – is 56 percent complete
v. Construction of 4 major by-passes at Osino, Anyinam, Enyiresi and
Konongo along the Accra-Kumasi Highway commenced in 2023 and are
at various stages of completion.
vi. Reconstruction of Agona Nkwanta-Tarkwa road – is 44 percent
complete
vii. Dualization of Ho Main Roads (Sokode-Gborgame-Civic Centre) and
Traffic Management Works(10.5km) – 100 percent
viii. Selected Roads in Sekondi and Takoradi Phase 1 – is 28 percent
completed;
ix. Dualization of Nsawam-Ofankor road (including widening of the road to
10–lanes with a 6–lane expressway and 4 – lane service road with
interchanges at Amasaman, Pobiman, Medie and Nsawam Junction) –
is 30 percent completed;
x. Construction of a 4-tier interchange at Suame in the Ashanti Region –
has commenced;
36 - Mr. Speaker, the following projects under the Master Project Support
Agreement (MPSA) with Sinohydro Corporation Limited have been completed:
i. Tamale Interchange Project (100 percent);
ii. Western Region and Cape Coast Inner City Roads- 32.19km (100
percent);
iii. Construction of Hohoe-Jasikan–Dodi-Pepesu – 66.4km (100 percent);
iv. Upgrading of Selected Feeder Roads in Ashanti and Western Regions –
68km (100 percent); - However, the following are at various stages of completion:
i. Sunyani Inner City Roads (39km) – 81 percent completed;
ii. Construction of Sunyani and Berekum Inner City Roads (39km) – 81
percent complete; and
iii. PTC roundabout interchange project, Takoradi – 80 percent complete. - Mr. Speaker, in addition, the preparation for the reconstruction of the AccraTema Motorway under the Road Sector’s Public Private Partnerships (PPP) with
GIIF is on course. The Concession Agreement and draft Engineering
Procurement and Construction (EPC) agreement have been approved by
Cabinet and will be submitted to Parliament for approval shortly. - Mr. Speaker, Government infrastructure progamme will also be anchored on a
strong private sector collaboration. To this end, Government will continue to
pursue the Mining Sector Roads rehabilitation projects to improve the road
network in mining communities. - Government will begin the formalisation of the agreements with the Mining
companies and mining related industries to fund and commence the
rehabilitation of Roads in the Mining Enclaves in 2024. Selected communities
include Takoradi Agona Nkwanta, Tarkwa Dualisation and Tarkwa township,
Prestea Bogoso and Bogoso township, Dunkwa Obuasi, Obuasi township, Ahwia
Nkwanta, Manso Nkran, and Konongo. - Mr. Speaker, to promote trade and transit from the Tema Port, the capacity of
the Tema Hospital Road will be improved under PPP arrangements. Accordingly,
Government has developed a deed of transfer to be executed. - Mr. Speaker, Government has renegotiated the contract terms of the La General
Hospital Project and will now be funded through the national budget. The
contractor is expected back on site next week to complete a significant amount
of work by 2024.
37
One District, One Factory - Mr. Speaker, in accordance with Government’s strong commitment to
industrialisation, a total of 169 One District, One Factory (1D1F) projects are
currently operational, leading to a total employment of 169,870. An additional
152 factories are currently under construction and expected to be fully
operational in 2024 and 2025. These industries are expected to increase valueaddition and support our efforts to reset the economy.
Enterprise Development - Mr. Speaker, in 2023, Ghana Free Zones Authority successfully licensed 29 Free
Zones companies, with capital investment of $180 million and created 2,500
jobs. In 2024, it is projected that Free Zones companies will generate an
estimated US$192 million in capital investments. - In line with Government’s commitment to support Micro, Small and Medium
Enterprises (MSMEs), through the Ghana Enterprises Agency (GEA), 140,562
enterprises – including 100,211 women-owned enterprises – were provided with
training and business development services. 2,055 informal sector operators
were also assisted to formalise their operations by registering with the Office
of the Registrar of Companies.
Transport - Mr. Speaker, to improve connectivity within the sub-region and facilitate
tourism, the upgrading of the Tamale Airport has been completed. To
complement this effort and facilitate trade through Ghana’s transit corridor, the
construction of the Boankra Integrated Logistics Terminal (BILT) is being
executed and is about 54 percent complete. - Following the approval of Ghana’s Energy Transition Investment Plan,
Government has commenced the development of a National Electric Vehicle
Policy as part of efforts to create an enabling environment for the uptake of
electric vehicles.
Housing - Mr. Speaker, Government rolled out the National Rental Assistance Scheme in
February 2023 to ease the burden of huge rent advance payments by
prospective tenants. From February to October 2023, the Scheme disbursed
about GH¢13.8million to cover the payment of rent advance for 1,105
individuals in the Greater Accra, Ashanti, Northern, Eastern, Bono East and
Western Regions.
38 - Mr. Speaker, Government continued works on Phase III of the Security Services
Housing Programme, involving the construction of 320 units for the Ghana
Police Service at the Ghana National Police Training School, Tesano. The overall
progress of work stands at 95 percent. - In addition, work commenced on the first phase of the Revised National
Affordable Housing Programme at Pokuase, to construct 8,000 housing units.
In 2024, Government will commence work on the National Affordable Housing
Project at Dedesua in the Ashanti Region.
Infrastructure for Poverty Eradication Programme (IPEP) - Mr. Speaker, under the Infrastructure for Poverty Eradication Programme,
Government continues to embark on strategic investments across our
communities nationwide in line with the fiscal consolidation plan. Through the
Development Authorities, over 340 projects were completed in 2023 and
accordingly handed over to the beneficiary communities.
Rural Telephony - Mr. Speaker, Government constructed a total of 1,010 rural telephony sites
under the Rural Telephony and Digital Inclusion Project, to provide voice signals
in underserved and unserved communities. This has benefitted about 1,353
rural communities who can now make calls via their mobile phones, thereby
enhancing social and economic activities in those communities. - In 2024, the remaining 1,006 sites will be built and integrated, and activate all
2,016 sites for voice and data services to ensure reliable, affordable, and
secured broadband infrastructure under this initiative.
Rural Electrification - Mr. Speaker, in line with the goal to achieve universal access to electricity by
2024, a total of 189 communities have been connected to the national grid,
with 211 communities at various stages of completion. The national electricity
access is estimated at 88.85 percent as at third quarter, 2023, and our goal is
to exceed a 90% mark by year end 2024.
Communications and Digitalisation - Mr. Speaker, under the Girls in ICT initiative, 2,000 girls and 200 ICT Teachers
in the Savannah and Northern Regions were trained. Additionally, a total of 287
laptops were presented to the best performing students and teachers in both
the Savanna and Northern Regions. In 2024, 3,000 girls and 300 ICT teachers
will be trained in the Ashanti, Greater Accra, and Volta Regions. Government,
39
Mr. Speaker, continues to seek resources for a one laptop per child programme
in order to create a tech-savvy population. - Mr. Speaker, the Ghana.gov platform deployed in 2020 has onboarded 1,541
MDAs, MMDAs, and State-Owned Enterprises (SOEs) with 130 of these entities
actively utilizing the platform for various functions, including processing
payments. This has yielded a total revenue of over GH¢164 billion since its
inception. In 2024, NITA will enroll government agencies responsible for
revenue collection onto the platform. In addition, a “Citizens’ App” will be
integrated into the platform, to enrich Citizen-to-Government engagement and
allow persons with disability to access the platform to foster inclusiveness.
Coastal Protection / Drainage / Flood Control - Mr. Speaker, Government continued with the coastal protection works to
protect coastal settlements against beach erosion and flooding while protecting
lives, livelihoods and properties from tidal wave erosion. Accordingly, the
Dansoman, Anomabu and Elmina (Phase III) coastal protection projects are
currently at 97 percent, 75 percent and 96 percent respectively. Other projects
include Cape Coast (80 percent), Dixcove (40 percent), Komenda (98 percent),
Aboadze Phase II (61 percent) and Ningo-Prampram (50 percent). - Government continued drainage improvement works to mitigate the disaster
risks associated with flooding in various parts of the country, while minimising
the economic losses that are associated with the floods. In 2024, work will
continue on uncompleted projects under the National Flood Control
Programme.
Governance - Mr. Speaker, the new Conduct of Public Officers Act seeks to address current
weaknesses in the asset declaration system. The new Act will introduce
provisions that ensure public officers submit their declaration in time and that
an effective verification system is in place. The draft Bill is under consideration
by Cabinet and will submitted to Parliament subsequently. - Government is also committed to ensuring the implementation of the second
phase of the National Anti-Corruption Action Plan (NACAP) to foster public
accountability and transparency.
Security - Mr. Speaker, Government will continue to resource the Ghana Armed Forces to
collaborate with other Security Services in the following operations: COWLEG,
CALM LIFE, HALT, GONGGONG to provide security to society, check illegal
40
logging and mining to control environmental degradation. In addition, the
establishment of 10 Mechanized Battalion at Wa, 11 Mechanized Battalion at
Bawku, 3 Field Workshop and 3 Mechanical Transport Company under
operation CONQUERED FIST have improved security and neutralized threats of
terrorism from the Northern Border. - Mr. Speaker, the establishment of 15 Forward Operating Bases (FOBs) along
the Northern Borders of the country to prevent cross border crimes and terrorist
infiltration are progressing steadily. In addition, the FOB at Ezinlibo in the
Western Region is 55 percent complete and forms part of the national strategic
programme to protect the country’s oil and gas fields. - Mr. Speaker, on internal security, the Ghana Police Service sustained and
enhanced its peace-building efforts in conflict zones such as Yendi, Tamale,
Wa, Chereponi, Bawku, Alavanyo, Nkonya, Ejura, and Akropong-Akuapem. The
Police Service improving Community Watch Programme with professional
motorbike riders has elevated the sense of security and the country. - The Service received 100 Toyota Hilux Pick-ups, 6 Armoured Personnel Carriers
(APC), and 600 Motor Bikes to augment the fleet of the Formed Police, Visibility,
and Motorbike Patrol Units to enhance their work. - Mr. Speaker, the Ghana Immigration Service conducted day and night patrols
along the borders to secure the country against irregular migration flows and
migration-related crimes. The Service also conducted 5,901 inspections at
various locations, such as companies, hotels, residential sites, and educational
institutions, to ensure compliance with immigration laws.
Independent Power Producers - Government has continued to engage key operational Independent
Power Producers (IPPs) in positive and constructive bilateral negotiations.
Engagements have centered on the sustainability of Ghana’s energy sector, as
well as the restructuring of legacy IPPs debt and power purchase agreements
(PPAs); future-proofing timely payments to IPPs going forward; and the
implementation of critically needed energy sector reforms. Government aims to
finalise commercial agreements with key IPPs in the coming weeks. - Mr. Speaker, Government remains mindful and appreciative of the
continuing commitment on the part of IPPs not only to supporting Ghana’s
power sector but also to collaborating with Government and the Electricity
Company of Ghana to achieve a sustainable future for the sector, while shoring
up Ghana’s reputation as a compelling investment destination.
41
Climate Change - Mr. Speaker, Ghana has been at the forefront of advocacy for a fit- for-climate
global financial architecture whilst expanding its engagements to mobilising
climate financing. - At the 2023 IMF/World Bank Group Annual Meetings, Ghana secured critical
financing support for its climate adaptation and mitigation measures. This
includes:
i. US$54.5 million to establish the Ghana Shea Landscape Emission
Reduction Project (GSLERP) in partnership with the Green Climate Fund.
ii. $4.8 million successfully earned by reducing nearly 1 million tons of
carbon emissions through forest conservation and degradation
prevention. We expect to earn up to $45 million by the end of 2024.
iii. Additionally, Government has signed 6 MOUs/agreements with
Switzerland, Singapore, Sweden, South Korea, as well as some public
and private entities in line with Article 6 of the Paris Agreement. - To leverage the mobilisation of climate finance resources and maximize its
usage, the Ministry of Finance is setting up a Climate Financing Division. This
is to improve coordination at the national level and hasten Ghana’s growth
towards climate resilience. Additionally, it will facilitate the fulfilment of Ghana’s
international commitments by effectively implementing Ghana’s Nationally
Determined Contributions. - Mr. Speaker, our leadership as Chair of both the Climate Vulnerable Forum (CVF)
and the Vulnerable Twenty Group (V20) is a prime example, directed by our
Ministries of Finance, Environment, Science Technology and Innovation, and
Foreign Affairs. - Under Ghana’s tenure, we’ve not only raised our global standing in climate
discussions but also championed the interests of climate-vulnerable nations.
President Nana Addo Dankwa Akufo-Addo leads the CVF, with Hon Ken OforiAtta chairing the V20 Finance Ministers. - Since 2021, under Ghana’s direction, the CVF and V20 have driven a forwardthinking agenda to counter climate change threats. We’ve led pivotal talks,
advocating for enhanced climate finance and firmer commitments from
developed nations. This effort extends to supporting vulnerable countries
through climate prosperity plans and the Accra-Marrakech agenda.
42 - Crucially, Ghana has been instrumental in pushing for reforms in the global
financial system to make it more conducive to climate-resilient growth and
sustainable development. Our leadership in this area is evident in advocating for
long-term reforms and presenting actionable steps, in line with the objectives of
the Accra-Marrakech agenda and the Bridgetown Initiative 2.0 proposed by
Prime Minister Mia Mottley of Barbados. - Ghana’s leadership in advocating for a reformed global financial system
underscores our commitment to fostering a future where climate-resilient growth
and sustainable development are at the forefront. By championing the needs of
developing countries in the face of climate change, we aim to pave the way for
a world where our nations not only survive but thrive. This vision for climate
resilience is more than an environmental imperative; it is a pathway to enduring
prosperity and stability for developing countries globally, ensuring that we are
equipped to face climate challenges while progressing towards a sustainable,
prosperous future.
43
IX. CONCLUSION - Mr. Speaker, today, I have highlighted our collective achievements as a nation
to this august House. I have also demonstrated how our investments over the
last seven years have positively impacted individuals, households, businesses,
and communities. - We have a safer country. We have a more physically and digitally connected
society. We have a more educated and skilled population. Through our policy
approach, the foundation for a country has been laid where: Ingenuity is being
encouraged; Innovation is supported; Public service is valued; Responsibility is
shared; Prosperity is shared; and Accountability for the custodianship of public
resources is prioritised. - Mr. Speaker, this is a marked change from when I first stood before this House
on 2nd March, 2017. At the time, ‘dumsor’ had decimated the incomes of
businesses and households. The financial sector was weak and near collapse.
Trained nurses had stayed home for years without employment. NHIS was in
arrears for over a year. A sizable number of Ghanaians were unable to access
Senior High School education. Above all, our economic prospects had dimmed
considerably. I referred then to the biblical story of five loaves and two fishes
to illustrate the approach in turning the economy around. - Mr. Speaker, I stood here in March 2017 and asked that the country’s
paltry 2 fishes and 5 loaves be multiplied. Indeed, as the young boy gave all
he had to the multitude, so have we and the Lord, in response, has blessed our
nation, and this we should not forget.
i. From a nominal GDP of GH¢262 billion in 2017 to GH¢1 trillion in 2024
ii. Invested in the future of our children under the free SHS programme with
1,261,495 students having access to secondary education.
iii. Supported the poor and vulnerable through an enhanced LEAP programme
by increasing the number of beneficiary households from 212,545 in 2017
to 350,000 households in 2023 with the aim of further increasing this to
450,000 over the medium term.
iv. Invested in providing one hot nutritious meal per day to 3,260,468 pupils in
our basic schools and provided a study income stream for 32,496 caterers.
v. Invested the most in the construction, rehabilitation and upgrading of major
road networks across the country.
vi. Supported small businesses with GH¢750 million during the COVID-19
pandemic through the CAP-Buss programme and other interventions.
44
vii. Invested in making sure that all public workers were paid every month
during the COVID pandemic including the teachers who were paid for all
the nine months when the academic calendar was disrupted.
viii. Invested to strategically establish over 160 factories across all districts
under the 1D1F programme
ix. Investing in the expansion of health infrastructure in every district under
the agenda 111 initiative - Mr. Speaker, let me take this opportunity to recognize the strong
partnership that has co-existed between the Government and organised labour.
I also want to use this occasion to thank the leadership of organized labour for
their positive cooperation since 2017. Yesterday, 14th November, 2023, we
successfully concluded negotiations for the 2024 Single Spine Salary Structure
the base pay which culminated in a 23 percent increase in the base pay on the
Single Spine Salary Structure (SSSS) across board from January to June 2024,
and a readjustment to 25 percent from July 2024 to December 2024. This
wouldn’t have been possible without the cooperation of our Labour Unions. - Since then, we have stayed focused and implemented our plans. However, it
has not been smooth sailing. There have been ebbs and flows. We have faced
severe headwinds since March 2020. The economy has faced multiple shocks.
We have not created enough jobs and food inflation remains high, creating
hardship and we are committed to tackling this. However, we are re-anchoring
our path, using the PC-PEG as our compass… our true North. - Mr. Speaker, backed by the PC-PEG, the 2023 Budget sought to restore and
sustain macroeconomic stability. With hard work and the grace of God, we are
on a path of stability and growth. Thankfully, a sense of a “new beginning” has
taken hold. - Despite our remarkable progress in the last ten months, risks abound. In
October, 2023, the IMF reported that global recovery remains slow, with little
margin for errors. The Kenyan Finance Minister also noted in September, 2023
that “All low and middle-income countries are walking a tightrope given the
current economic constraints globally”. - Mr. Speaker, we are aware of these pressures and risks. So far, the
implementation of the Government’s PC-PEG, which addresses these pressures,
is delivering the immediate intended results. We have successfully concluded
the Domestic Debt Operations and are making steady progress on external debt
restructuring. We are implementing the new Growth Strategy, which prioritises
45
the completion of key transformative interventions to improve the quality of life
and welfare of our people. - Mr. Speaker, for our future, large public spending and deficits cannot
remain embedded in our policy framework. So after achieving macroeconomic
stability, the gains will be anchored on enhanced fiscal responsibility rules. The
IMF is already working with us to strengthen these rules in order to maintain
macroeconomic stability and implement structural reforms needed to sustain
the country on a strong path of economic growth and transformation. - To achieve a sustainable recovery, we must deepen our reforms:
i. Promote private sector investment and entrepreneurship. This is why in
this budget the DBG has committed about GH¢2b in private sector lending.
The YouStart initiative will also commit to channel GH¢200m to our SMEs
through GEA, NEIP and our commercial banks.
ii. Coordinate with the Bank of Ghana to bring down interest rates to single
digits in the next 24 months as the inflation path improves.
iii. Protect the financial system and enable stronger institutions. This is why
under the IMF supported program we have committed 2.6% of GDP to be
deployed in phases to further strengthen the financial system and
ensuring confidence. This is critical in sustaining the recovery and
ensuring that both short term funding for operations and long term capital
investment by the private sector are supported. In the Mid-year we
committed US$750m equivalent under Ghana Financial Stability Fund, and
are making provision for an additional GH¢4 billion to address legacy
issues in the financial sector. - Mr. Speaker, the 2024 Budget has been developed to:
i. Ensure the accelerated implementation of the PC-PEG and safeguard the
recent macroeconomic gains;
ii. Expand investments in the real sector to implement the new Growth
Strategy and chart a new course;
iii. Consolidate and complete on-going infrastructural projects to improve
productivity and welfare; and
iv. Mobilise climate finance to enable us build resilience and promote
Climate-sensitive growth - The policy initiatives outlined in this Budget will also ensure Ghana remains
attractive for domestic and foreign investors. The feedback from our extensive
engagements with key stakeholders has informed our policy choices.
46 - Mr. Speaker, we have launched the Ghana Mutual Prosperity Dialogues so that
Government can work with the private sector to craft solutions that will ensure
that the nation will realise a thriving and resilient economy. Crucially, we will
invest in local businesses to catalyse a new wave of growth and employment
that is sustainable, inclusive and impactful. - More importantly, the various components of the Government-owned financial
ecosystem such as DBG, GCB, CBG, GIRSAL, GCX, GIIF, Venture Capital Trust
Fund, GEA, NEIP, YEA, GEPA will be strengthened to enable us to address the
concerns of the private sector in respect of access to credit, access to skills,
labour, and raw materials. - Mr. Speaker, we do this knowing that the key to our prosperity is not handing
out free goods and services to our underprivileged folks. Rather, it is by
providing skills and finance to enable people to generate income and jobs. - Mr. Speaker, we continue to optimise our tourism infrastructure investments to
advance our economic progress. The improvements in key tourist sites have
been complemented by aggressive marketing to reposition Ghana. Next month,
as in recent years, our country will expect an increase in tourists seeking to
patronise the ‘DECEMBER IN GH’ event. This follows the successful ‘Year of
Return’ and ‘Beyond the Return’ programmes launched by the President in 2019
and 2021 respectively. Our investments in CCTVs on our roads, and provision
of increased logistics for the security services will continue to support these
events and make them memorable. - These investments would also facilitate the hosting of the 13th All Africa Games
in Accra, from 8th to 23rd March, 2024. The occasion will spotlight Ghana as a
leading sporting venue in Africa and highlight our organisational capital for
sporting events in the future. - In addition, Ghana has strategically positioned itself to mobilise climate
financing, and champion a fit-for-climate global financial architecture as Chair
of the Climate Vulnerable Forum and the Vulnerable Twenty Group (V20). The
vehicles being explored includei. Sustainable Use of Natural Resources and Energy Finance (SUNREF) in
Ghana;
ii. Climafintrack climate financing tracking tool;
iii. Sustainable Financing Framework;
iv. Digitisation of Payments in the Cocoa Supply Chain;
v. Environmental and Fiscal Reform; and
47
vi. Engagements with the Green Climate Fund. - Mr. Speaker, a new and exciting opportunity is Ghana’s newfound wealth in
lithium and graphite, which will be extracted in line with the Green Minerals
Policy, to support our energy transition. - On 19th October, 2023, Government granted its first concession for the mining
of lithium, which is guaranteed to be a major contributor to Ghana’s GDP from - On the Atlantic Lithium mining project, which is projected to produce
some 360,000 tonnes of lithium a year, Government has negotiated a 10
percent royalty and a record-high 13 percent free carried interest for the State.
The company will also pay one percent of its revenue and another one percent
for the Growth and Stabilisation Levy. - Mr. Speaker, in addition, the Minerals Income Investment Fund, has acquired
a 6 percent contributing interest in Atlantic Lithium’s Ghana Portfolio. This will
lead us to a new negotiation posture for future extractive industry investments. - Mr. Speaker, in line with Government localisation policy, Atlantic Lithium would
list on the Ghana Stock Exchange to further enhance and deepen local
participation. Also, a study to assess the economic benefits of the downstream
conversion of lithium in Ghana, including the local use of feldspar and kaolin
for ceramics and other products, has commenced and the findings will be
submitted to Government by end of February 2024. - Mr. Speaker, we are in a better place than we were before. The nation has
been positively impacted and positioned to harness its prospects. We must
move forward courageously. For as 2 Timothy 1:7 counsels, “God has not
given us the spirit of fear; but of courage, and of love, and of a sound mind”. - It is in this same vein of courage and power, that we have forged a path of
resilience since 2017. It is important to recall that despite the ‘poly-crises’ since
March 2020, we have, together, taken a GDP of GH¢219.5 billion in 2016
and almost quadrupled it. We are crossing the GH¢1 Trillion GDP mark this
year. - A key lesson from this leap since 2017 is for us to eschew unfounded
pessimism. We have shown that it is possible. We should be collectively proud
of ourselves and the can-do-spirit of our people. We have proven that a lot
more is possible, if we stay the course and believe in a future of immense
possibilities.
48 - To realise our common aspiration, Mr. Speaker, we must continue to speak in
our language. This is Ghana: A nation united in diversity. A resilient nation on
the path to manifest destiny. Every opportunity to safeguard our progress must
be protected by adherence to the exhortation of Genesis 11:6. - Mr. Speaker, I present to you the “NKUNIM” Budget. A people with a manifest
destiny for greatness. We are resilient and we shall prevail, because the Battle
is still the Lords. - God bless our homeland Ghana and make us steadfast to build together a
nation strong in Unity. - Mr. Speaker, I so move.
