Ghana’s government has taken significant steps towards economic stabilization and investor confidence restoration through a series of financial maneuvers and strategic investments.
A key component of these efforts was the payment of GHS 12 billion to bondholders under the Domestic Debt Exchange Programme, a measure outlined in the Mid-Year Budget review presented by the Minister for Finance, Mohammed Amin Adam, on July 23, 2024. Addressing Parliament, Dr. Adam underscored the government’s dedication to meeting its financial obligations and ensuring economic stability.
“The payment of GHS 12 billion to bondholders marks a critical step in our efforts to restore confidence in the financial markets and stabilize the economy. This payment is a testament to our commitment to fiscal discipline and prudent financial management.”
Mohammed Amin Adam, Minister for Finance
The Finance Minister detailed how this substantial payment fits within the broader strategy for economic recovery and growth. The Domestic Debt Exchange Programme, introduced to manage and restructure the country’s debt, has been instrumental in these efforts.
“Through this programme, we have not only managed to honor our commitments to bondholders but also created a more sustainable debt profile for the nation,” Dr. Adam explained.
This financial maneuver is part of a broader set of measures aimed at improving the macroeconomic environment. Dr. Adam highlighted significant progress in stabilizing inflation and the exchange rate.
The Mid-Year Budget Review also spotlighted the government’s substantial investments in social programmes and infrastructure.
Dr. Adam indicted that over GHS 5.4 billion has been disbursed for various social initiatives, including the Livelihood Empowerment Against Poverty (LEAP) initiative, the School Feeding Programme, and the National Health Insurance Scheme (NHIS). These programs are vital in supporting the most vulnerable segments of society.
In addition, Dr. Adam revealed nearly GHS 10 billion has been invested in the road sector since January 2024. Key projects include the expansion of the Komfo Anokye Teaching Hospital, the rehabilitation of the Ofankor-Nsawam Road, and ongoing investments in water and sanitation infrastructure.
Education and SME Support
Education remains a priority for the government, with substantial funding allocated to the Free SHS programme. In the first half of 2024, GHS 1.5 billion was invested in this initiative, ensuring that the youth have access to quality education.
“Investing in education is investing in the future of our nation. We are committed to building a skilled and educated workforce,” Dr. Adam stated.
Recognizing the critical role of small and medium-sized enterprises (SMEs) in job creation and economic development, Dr. Adam noted that the government has launched a GHS 8.2 billion programme to boost SMEs.
This initiative aims to provide financial support and resources to local businesses, fostering innovation and entrepreneurship.
Dr. Adam also discussed the progress made in the digitalization agenda, with a GHS 135 million investment in the National Identification Programme. This initiative is crucial for improving governance and service delivery, ensuring that every Ghanaian can access essential services efficiently.
The payment of GHS 12 billion to bondholders is a significant milestone in Ghana’s efforts to stabilize its economy and restore investor confidence. Coupled with other strategic measures outlined in the Mid-Year Budget review, the government is demonstrating its commitment to fiscal discipline, economic recovery, and sustainable growth.
Ghana’s Mid-Year Budget Review presents a comprehensive overview of the government’s efforts to stabilize the economy, restore investor confidence, and invest in the nation’s future through strategic financial measures and targeted social and infrastructural developments.
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