Considering Ghana’s economic recovery outlook, the Minister of Finance Dr. Mohammed Amin Adam has addressed concerns while stating that the nation is steadily recovering from the economic challenges posed by the COVID-19 pandemic.
Speaking at the 13th edition of the Ghana Association of Industries (AGI) Industry and Quality Awards 2024, Dr. Amin Adam emphasized the notable strides made in the year’s first half, particularly in economic growth.
The event, which brought together industry leaders, policymakers, and innovators, celebrated excellence in Ghana’s industrial sector under the theme “Navigating the Uncertainties of Our Business Landscape to Sustain Productivity.”
Economic Growth Surpasses Projections
Dr. Amin Adam highlighted that the economic recovery is evident in the impressive growth figures in 2024.
“Let me emphasize that the half-year growth in 2024 is more than the half-year growth in 2019 by 0.4 percentage points, and this is why some of us are optimistic that this economy is returning to the pre-COVID growth trajectory.”
Dr. Mohammed Amin Adam Finance Minister
He attributed this success to industry players’ resilience and significant contributions, paying tribute to their unwavering commitment to Ghana’s economic recovery.
Comparison with Pre-COVID Performance
In his address, Dr. Amin Adam drew a comparison with pre-COVID growth levels to demonstrate the pace of recovery. In 2019, the economy grew at a rate slightly below what has been achieved in the first half of 2024.
This, he stated, was a clear indication that the nation is on the path to returning to its pre-pandemic growth trajectory.
“Last year, we projected to grow at 1.5%, [but] we grew at 2.9%. This year, by the first half of the year, we were supposed to have grown by 3.1%, but we grew at 5.8%.”
Dr. Mohammed Amin Adam Finance Minister
Appeal for Policy and Tax Reforms
However, Dr. Humphrey Ayim Darke, the President of the Association of Ghana Industries (AGI), used the occasion to call for urgent policy and tax reforms to ease the burdens on private-sector businesses.
“When you adhere to and look at Act 891, it will also help you in the Fisher’s equation where you bring about the stability. And the Fisher’s equation talks about the nominal interest rates being the real interest rate plus inflation.
So that, when the Bank of Ghana deploys the monetary policy in [which] all things are [being] equal, when the inflation goes down the nominal interest rate must also go down. [With] this anomaly, you are a student of economics, respectfully we believe you [would] go and relook at Act 891. We are willing to engage you to bring reasonable stability and predictability to business.”
Dr. Humphrey Ayim Darke President of the Association of Ghana Industries (AGI)
He called for comprehensive reforms to simplify the system and provide predictability for the private sector. He emphasized; “the complications in the tax positions are not good for business, we really need tax reforms.”
Additionally, he encouraged collaboration between policymakers and the business community to ensure sustainable growth in Ghana’s economic environment.
Collaboration for Economic Growth
The event underscored the critical role of collaboration between policymakers and industry players in fostering economic growth and stability.
Both Dr. Amin Adam and Dr. Darke emphasized that a united effort is necessary to navigate the uncertainties in the business landscape.
The government’s commitment to supporting industry growth and the industry’s appeal for reforms highlight the shared goal of achieving sustainable productivity.
The 13th edition of the AGI Industry and Quality Awards not only celebrated the achievements of Ghana’s industrial sector but also served as a platform for dialogue on the country’s economic recovery.
Dr. Mohammed Amin Adam’s optimistic outlook on the economy, coupled with Dr. Humphrey Ayim Darke’s call for reforms, sets the stage for a collaborative effort to sustain productivity and growth.
As Ghana progresses toward pre-COVID growth levels, the partnership between policymakers and industry leaders will remain crucial in shaping the country’s economic future.
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