Ghana's Economic Outlook for the year 2018

02-02-2018

Ghana's Economic Outlook for the year 2018

Last Wednesday our colleagues from the Ghana German Economic Association (GGEA) in cooperation with “ Algemeine Handels Kammer”  (AHK)– delegation of German Industry and Commerce in Ghana organized a seminar under the title “ Ghana’s Economic Outlook for 2018”  which was presented by the main guest and key note speaker  , honourable Ken Ofori Atta, Minister for Finance and Economic Planning. He lauded his government for returning Ghana to macroeconomic stability in 2017 targeting a further improvement in 2018 such as  6,8% GDP growth and  inflation down to 8,9%, lowering the fiscal deficit to 5,4% hence the improvement of monetary and fiscal discipline  . Ghana needs huge investments in infrastructure and is now tackling problems and corruption such as over invoicing. In 2018 further economic growth needs to be created , especially the right growth conditions for industries and companies.

In todays’s Daily Graphic his whole speech was summarized below:

The Minister of Finance, Mr Ken Ofori-Atta, has stressed the country’s commitment to pursue a more strategic aid mobilisation and management approach that fully aligns with its development priorities and programmes within the economy.

He explained that ‘Ghana Beyond Aid’ did not mean the country would turn its back on foreign aid from its development partners.

Mr Ofori-Atta was speaking at the Ghana-German Economic Association (GGEA) Business Forum held in Accra last Wednesday.

“We will continue to welcome development assistance; however, we will be more strategic in how we mobilise and manage it,” he said, adding that in particular aid had to be firmly aligned to economic and social development priorities developed by Ghana for itself.

He said Ghana had seen the role foreign aid played in the Japanese Miracle or the Marshall Plan in 1948, adding that even the majority of European Union (EU) countries depended on the EU for support.

Mr Ofori-Atta said the government would also aggressively promote private investment, both domestic and foreign, and radically improve the business environment in the country.

Given the enormity of the resources required for our rapid economic transformation, he said, the government would intensify its efforts at raising foreign private investments, venture capital and private equity firms, institutional investors and sovereign wealth funds.

The Finance Minister said the government would also rigorously increase the efficiency of resource use in the public sector and significantly increase resource mobilisation, which would involve increasing private savings and government revenues.

“And we will ensure that resources to the public sector are properly deployed and efficiently monitored to ensure value-for-money,” he added.

Strategic programmes

Under the guidance of President Nana Addo Dankwa Akufo-Addo, he said, the government was working towards translating the ‘Ghana Beyond Aid’ vision into specific policies, reforms, processes and strategic investment programmes which would be announced soon by the President.

 

The process of transformation, he noted, would require the government to be an activist government, be pragmatic and, in a sense, dual track.

“We have to play an enabling role and be deliberate in promoting Ghanaian entrepreneurs to team up with their German and foreign partners,” he stressed.

Mr Ofori-Atta noted that there was more than $10 trillion invested in negative interest rate bonds, $24 trillion in low-yield government securities and $5 trillion sitting in cash, waiting for better investment with higher returns.

That, he noted, clearly demonstrated the importance of the Compact with Africa launched last year under the leadership of Germany.

Source: Daily Graphic Friday the 2nd of February 2018, No 20597, page 24-25 or on Internet: https://www.graphic.com.gh/news/general-news/ghana-will-pursue-strategic-aid-mobilisation-management-finance-minister.html

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