Ghana’s growth model must evolve beyond reliance on FDIs

goldcoastnewsline@gmail.com

July 17, 2024
0 Comments

The Minister of Finance, Mohammed amin Adam, has said that Ghana’s growth model must evolve beyond relying heavily on foreign direct investment and raw material exports, which can be volatile and expose the country to external shocks.

He believes the nation must harness the potential of homegrown small and medium-scale enterprises (SMEs) to build a prosperous, dynamic and competitive economy.

Speaking at the launch of the SME Growth and Opportunity programme, dubbed “SME GO,” Dr. Amin Adam underscored the need to be intentional about providing access to financial resources, expertise and capacity building programmes that empower them to drive innovation, create jobs, and stimulate economic growth.

He said the launch of the programme marked a big step towards strengthening the entire SME ecosystem in the medium term as well as unlocking the full potential of Ghanaian SMEs, and create a new wave of entrepreneurs and business leaders who will drive the economy forward.

“We have overcome challenges in the past, and our recent achievements in macroeconomic stability – robust growth, lower inflation, and stronger public finances demonstrate our resilience and determination,” he said.

“Through the SME GO, we will bind the public and private sectors together to create a better ecosystem for our SMEs. Our implementing partners – GEA, Ghana Exim Bank, and Development Bank Ghana – possess the expertise and capacity to deliver results swiftly,” the Minister added.

According to Dr. Amin Adam, his ministry has consulted with stakeholders, including the Association of Ghana Industries (AGI) and civil society, to design selection criteria and financing instruments tailored to meet the needs of high-growth potential SMEs.

“Additionally, we recognize that financial support alone is insufficient, which is why the Programme includes comprehensive capacity-building programs to upskill both beneficiaries and the wider business landscape. This is particularly important because it seeks to address the risk of lending to SMEs by commercial banks, who continue to be worried about low loan recoveries,” he further explained.

The Minister noted that the aforementioned formed the government’s commitment to creating a platform for SMEs, and to “raise SME champions to generate impact that resonates throughout our communities, leaving a legacy of empowerment, innovation, and prosperity for generations to come.”

goldcoastnewsline@gmail.com

Business News

goldcoastnewsline@gmail.com
January 24, 2025
0 Comments
3 minutes Read

Some thugs associated with the National Democratic Congress (NDC) besieged the offices of the Ghana Revenue Authority (GRA) yesterday, causing chaos, and intimidating employees of the state revenue agency.

The group threatened to shut down the operations of the GRA as part of a protest against the appointment of Anthony Kwasi Sarpong as the Acting Commissioner-General.

The rowdy group issued a statement before storming the premises, describing the presidential appointment as “disappointing”, and demanding its immediate reversal. According to them, Mr. Sarpong’s affiliation with the opposition New Patriotic Party (NPP) disqualifies him from serving under the NDC administration. The protesters alleged that Mr. Sarpong’s previous appointment to the Institute of Chartered Accountants, Ghana (ICAG), in 2020 by then-President Nana Akufo-Addo was sufficient evidence of his political alignment.

They vowed to physically block Mr. Sarpong from assuming office. “We will not allow him to step foot in this office. This is a clear betrayal of NDC loyalists who have sacrificed for this party,” one member declared during the chaos.

This incident adds to the growing list of violent actions carried out by NDC-affiliated groups since the party reclaimed power in the December 2024 general elections. The immediate aftermath of the electoral victory was marked by widespread violence, with thugs attacking state institutions, locking up public offices, and forcefully evicting civil servants perceived to be aligned with the opposition.

Since the inauguration of President John Dramani Mahama on January 7, lawlessness has persisted, spreading from public institutions to internal party matters.

In President Mahama’s hometown, Bole-Bamboi, NDC youth expressed outrage earlier this week when Alhaji Yusif Sulemana, the area’s Member of Parliament, was overlooked for a ministerial role.

Enraged by the President’s decision, protesters vandalized properties, torched car tyres in front of the house of Mr. Mahama’s late father, and issued threats of further destruction, including plans to set the local party office ablaze.

In Obuasi, violent clashes resulted in the death of so many NDC thugs attempting to seize control of AngloGold Ashanti’s mining operations. The attempt to take over the company, coupled with fierce opposition from security personnel, has underscored the escalation of tensions within the ruling party.

Additionally, supporters of the NDC in the Ho Central constituency torched their party office on Tuesday. Their outrage stemmed from a perceived neglect by President Mahama, who failed to nominate anyone from their constituency for a ministerial appointment. Protesters broke into the office, threw out furniture, equipment, and vital documents before setting the items ablaze using car tyres.

Business News

goldcoastnewsline@gmail.com
December 3, 2024
0 Comments
2 minutes Read

IMF approves $360m for Ghana after third review

The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of $360 million to Ghana under its $3 billion Extended Credit Facility (ECF).

This follows the successful completion of Ghana’s third review under the program, as announced on Monday, December 2, 2024.

The latest disbursement brings Ghana’s total receipts from the ECF to $1.92 billion. The funds are expected to be credited to the Bank of Ghana by the end of the week.

“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off. Good progress has been made on debt restructuring. Growth is recovering rapidly, inflation has declined—although at a slower pace, and the fiscal and external positions have continued to improve”, the IMF said in a release.

The statement added that the “Ghanaian authorities have continued to make remarkable headways on their public debt restructuring. After successfully restructuring domestic debt last year and reaching an agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with program parameters.

“The authorities have also intensified engagement with their remaining external commercial creditors on a restructuring in line with program parameters and comparability of treatment.

“The Bank of Ghana (BoG) has maintained a prudent monetary policy stance to sustain a continued reduction in inflation against heightened risks and has taken important steps to rebuild international reserves.

“The BoG has also appropriately strengthened measures to buttress financial sector stability by intensifying actions to promote timely recapitalization and steps to sustain the viability of banks. The government has started recapitalizing state-owned banks consistent with available resources.”