Deloitte Ghana makes 5 recommendations government can employ to grow the economy

The local economy took a downward trend in 2020 after the country was hit by the coronavirus pandemic.

The outbreak of the Russia-Ukraine war also affected the economy and government in a bid to restore the economy on track ran to the International Monetary Fund (IMF) for a $3 billion financial bailout programme.

Finance Minister, Ken Ofori-Atta, on Wednesday, November 15, 2023, presented the 2024 Budget Statement and Economic policy in parliament.

The Budget Statement was under the theme “pursuing growth & development within a stable macroeconomic environment”.

The budget reading was in accordance with Article 179 of the 1992 constitution and Section 21 of the Public Financial Management Act 2016 (Act 921).

Tax waivers for the local textile industry, agricultural machinery and vehicles, inflation expected to remain within the IMF programme’s Monetary Policy Consultation Clause (MPCC) of 29.4 percent, among others were some of the highlights of the budget presentation.

Speaking at the 5th edition of Deloitte Economic Dialogue in Accra on Wednesday, November 22, 2023, the Country Managing Partner of Deloitte Ghana, Daniel Kwadwo Owusu, gave 5 recommendations government can adopt to grow and stabilize the economy.

According to him, government can curb the high unemployment rate in the country due to the contraction of the industrial sector in 2023 by enhancing the agro-processing sector.

The sector, he said, needs to move to value addition to create employment opportunities for the teeming unemployed youth in the country.

Below are the 5 recommendations made by Deloitte Ghana:

Intentional focus on agric and industries

He called on government to enhance agro-processing leading to value addition, industry growth and create employment opportunities for the youth.

Lack of stable currency affects planning and confidence in investment

According to Mr Owusu, currency stability is very crucial, therefore, government needs to stabilize the currency as the industry looks forward to projections and investment decisions.

Halt harassment of industry players

Deloitte recommended an approach that identifies industries as partners in economic development.

Inflation

Sustain monetary and fiscal policy to keep moving inflation to the targeted levels.

Remove nuisance taxes

Remove some of the taxes that industries have termed nuisance taxes such as the COVID-19 levy.

Also, government must consolidate indirect taxes into the VAT regime.

These when adopted, Mr Owusu said, will help build a better future for the local economy which will subsequently drive Ghana to a sustainable economic recovery.

SA/NOQ

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