The government is projecting the value of Ghana’s economy at over GH¢1 trillion in 2024, with a pledge to protect “at all cost the foundation for sustained economic expansion, achieved through the sweat and patience of the Ghanaian people.”
Mr Ken Ofori-Atta, Finance Minister, said this when he presented the 2024 budget to Parliament on Wednesday, November 16.
He said the feat would be crystalised by providing the right environment for private sector growth.
“This will include reliable energy supply, stable cedi, lower inflation, and lower interest rate regimes, access to private sector credit, infrastructure provision, food security, and national security,” he said.
He also stated that government would ensure inter-continental market linkages by increasing active platforms such as the Africa Continental Free Trade Agreement (AfCFTA) for the private sector.
The government is also deepening partnerships under the “Ghana Mutual Prosperity Dialogue,” to enhance competitiveness and increase Ghana’s attractiveness as a hub for businesses on the continent.
About eight tax reliefs were granted in the 2024 budget to support, which together with the implementation of the government’s five-year Growth Strategy, would stimulate and sustain economic growth.
The growth strategy is to scale-up prioritised existing programmes and attract private sector investments in agriculture, agri-business and aquaculture, trade, industry and export promotion, tourism, digitisation and technology.
That would increase the country’s capacity to produce, deepen value-chains, facilitate and modernise storage facilities and increase the shelf-life of products to support exports, build forex exchange buffers and reduce inflation.
Specific interventions to support the realisation of the GH¢1 trillion economic growth include the phase two of the Planting for Food and Jobs (PFJ), which is to meet the 314,337 metric tonnes of demand for onions, and 1,257,348mt demand for tomatoes.
It is expected that the condition and capacity of existing warehouses would also be improved under PFJ II, to enhance the condition and capacity in storing bumper harvest and maintaining price stability.
Again, there would be the production and supply of over 110,700,000 litres of Premix fuel using gasoline and condensate to support fishermen, fish farmers, and fish processors in the country’s coastal regions.
The Minister stated that some GH¢1 billion has been allocated to Millennium Development Authority (MiDA) to complement the PFJ II to provide critical infrastructure, including irrigation, and canals.
Under the Economic Enclave Projects (EEP), the government would assist with large-scale commercial agriculture, promote the adoption of technology for efficiency and standardisation, while supporting price stabilisation efforts.
“As of December 2022, three enclaves in Kasunya (Greater Accra), Kumawu (Ashanti) and Banda (Oti Region) were operational,” Mr Ofori-Atta said.
He noted that 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, and create some 5,000 jobs.
Ghana’s earnings from Non-Traditional Exports are also expected to increase to US$4 billion (2023) and $4.8 billion (2024), from $3.51 billion (2022).
Regulatory-wise, the Minister stated that the government is enacting the Business Regulatory Reform Bill to enhance the quality and transparency of regulatory administration and establish a predictable regulatory environment.
It is also aiming at crowding in private sector financing of $20 billion through Foreign Direct Investments (FDIs) through a more coordinated and aggressive promotion and enhanced Public-Private dialogues and Partnerships.
Mr Ofori-Atta noted that Ghana had seen continued macroeconomic stability and economic recovery this year through the prompt deployment of strong fiscal and monetary policy measures.
“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,” he said.