By Kodjo Adams
Accra, Aug. 15, GNA – Mr Thomas Nyarko Ampem, Deputy Minister of Finance, says Government is shifting its economic focus from restoring macroeconomic stability to translating the gains into higher investment, production, exports and quality jobs.
He said the next phase of the economic recovery would place the private sector at the centre, with increased domestic production, local value addition, export expansion and job creation expected to drive sustained growth.
Mr Ampem said this at the Association of Ghana Industries’ (AGI) second-quarter Business Barometer survey in Accra.
He said improvements in inflation, currency stability, interest rates and foreign exchange reserves should provide businesses with greater certainty and predictability, while fiscal discipline should create more room for private-sector investment.
“Stability must now produce industry growth and jobs,” he said, stressing that stronger productive activity and employment should be key measures of the economic recovery.
Mr Ampem said the Government would focus on strengthening domestic supply chains, increasing local sourcing of production inputs, processing more of the country’s raw materials and expanding access to international markets for locally produced goods.
He said lower inflation and greater stability in interest rates should translate into improved business conditions, lower production costs and greater certainty for households and enterprises.
Mr Ampem said the Government would pursue measures to reduce the cost of doing business and improve access to finance, particularly for women-led enterprises through the Women’s Development Bank.
He said the Government would also strengthen road and energy infrastructure, remove unnecessary regulatory bottlenecks and improve the efficiency of customs and port operations.
The Deputy Minister said export support under the 24-hour economy programme and technology-driven tax compliance would form part of efforts to consolidate economic stability and create conditions for stronger private-sector growth.
The AGI’s second-quarter Business Barometer recorded a business confidence index of 108.7, reflecting continued confidence among businesses despite persistent cost pressures and challenges in the real sector.
The survey attributed the confidence to improving macroeconomic stability and growing confidence in the Government’s economic management and reform agenda.
Businesses, however, identified the high cost of electricity as their biggest operating challenge during the quarter, followed by the cost of raw materials, multiplicity of taxes, access to credit and poor road infrastructure.
The survey also identified access to finance as a significant constraint, particularly for businesses in the real sector, despite increased lending to the private sector.
Mr Seth Twum-Akwaboah, Chief Executive Officer of the AGI, said the high cost of electricity accounted for 19 per cent of concerns identified by businesses in the survey.
He said the cost of electricity affected businesses across the manufacturing, services and
construction sectors, as well as small, medium and large enterprises, and required urgent attention to protect production and competitiveness.
The Business Barometer is a quarterly AGI survey that measures confidence in the domestic business environment, identifies short-term business trends and provides evidence to inform policy advocacy.
GNA
Edited by Kenneth Sackey
Reporter: Kodjo Adams