Importance of Budget Measures for Private Sector Growth in Ghana

In a recent statement, PwC Ghana emphasized the need for the government to effectively implement budget measures to support private sector growth. Challenges in policy implementation hinder the private sector’s potential. Dialogue with the mining sector and adequate support for agriculture were highlighted as vital for fostering a conducive business environment. Government efforts to enhance local enterprises through initiatives like the Exim Bank were also underscored.

The government is advised to prioritize the implementation of budget measures to foster an environment conducive for private sector growth. Mr. Vish Ashiagbor, Country Senior Partner at PricewaterhouseCoopers (PwC) Ghana, emphasized that despite the private sector’s potential as a growth engine, policy implementation challenges hinder progress. He noted, “from a business point of view, we think that the budget is business friendly. The key will be on how we implement going forward” during the PwC Ghana 2025 Budget Digest in Accra.

On the topic of the growth and sustainability levy, Mr. Ashiagbor urged for constructive dialogue between the government and the mining sector. He acknowledged concerns from the mining sector regarding potential investment distortions due to increased levies and extended tenures, and he stressed the importance of fostering communication. “Dialogue will be necessary so that the mining sector in this case can have a better understanding of what the issues are,” he stated, highlighting the need for collaborative solutions.

Regarding agriculture, Mr. Ashiagbor commented that the government’s financial allocation seemed insufficient, especially considering agriculture’s role as a growth pillar. He indicated that indirect support, such as enhancing infrastructure and establishing agri-zones, is essential for agricultural development. He stated, “government does not need necessarily to invest directly in agriculture itself, but… they create the environment that allows private sector to thrive in agriculture.”

Mr. Seth Tekper, the Presidential Advisor on the Economy, reaffirmed the government’s dedication to supporting local enterprises through initiatives like the Exim Bank to enhance value addition and promote exports. He affirmed, “We will not only continue to support the Exim Bank, but we are actively working on increasing value addition within our domestic industries,” emphasizing its importance in minimizing reliance on imports.

Furthermore, Mr. Goosie Tanoh, Presidential Advisor on the 24-hour Economy policy, spoke about efforts to reform the economy and lessen dependency on imports. His remarks about the accelerated export development program underscored the commitment to transform the agricultural value chain for sustainable job creation and economic stability. Overall, the PwC Post-Budget Analysis aims to review the financial policies and their potential impacts on various sectors and the public.

In summary, the implementation of budget measures is paramount for promoting private sector growth in Ghana. Effective dialogue with the mining industry, adequate support for agriculture, and enhancing local enterprise value addition are critical components. The government’s focus on restructuring the economy and transforming agricultural frameworks is essential for long-term economic progress and reducing import dependency.

Original Source: gna.org.gh