The Member of Parliament for Evalue-Ajomoro-Gwira and Vice Chairman for Economy and Development Committee, Honourable Kofi Arko Nokoe has argued that Ghana’s current economic situation shows signs of improvement compared to the conditions experienced in December 2024. He said the reduction in inflation, lending rates and other economic indicators demonstrates progress, while stressing that more interventions are required to expand employment opportunities.
Honourable Nokoe explained that the country’s inflation rate has declined significantly from 23.8 percent to 3.3 percent, which he said has created a more favourable environment for businesses and households. The Vice Chairman noted that although challenges remain within the economy, the current conditions represent an improvement from previous periods.
According to him, government policies are focusing on reducing production costs to support businesses and encourage job creation. He cited efforts within the energy sector, including plans to establish another gas processing plant through the Ministry of Energy, as part of measures to ensure reliable power supply for industries.
The MP added that infrastructure development remains a key component of economic growth because efficient transport networks help businesses move goods and services across the country. He mentioned road projects connecting areas such as Kumasi, Accra, Axim, Takoradi and Koforidua as important steps towards improving logistics.
“Things are not so good, but they are better than before. What we need to do is continue putting measures in place to strengthen businesses and create jobs.”
Honourable Kofi Arko Nokoe
The Ranking Member further stated that economic growth must be supported by practical interventions that allow local industries to expand. He explained that reducing operational expenses for companies would encourage investment and improve their ability to employ more people.
Discussing the relationship between economic growth and employment, Honourable Nokoe said increases in national output must be accompanied by policies that promote value addition. He noted that sectors such as agro processing and manufacturing remain essential areas where Ghana can create sustainable jobs for young people.
Additionally, the MP said government’s approach is on improving the conditions that allow businesses to survive and grow. He stressed that access to affordable credit, stable power supply and efficient logistics were necessary elements for entrepreneurs seeking to establish enterprises.
The Vice Chairman also responded to criticisms surrounding Ghana’s economic performance by stating that progress should be measured through clear indicators and policy outcomes. He urged stakeholders to focus on solutions that strengthen production capacity and improve opportunities for citizens.
Government Reviews Industrial Policies To Improve Local Production
Honourable Kofi Arko Nokoe also disclosed that the review of the One District One Factory policy was influenced by concerns surrounding the implementation of tax exemptions linked to the initiative. He explained that government’s decision was is aimed at ensuring that incentives granted to businesses deliver measurable benefits to the economy.
Honourable Nokoe said some exemptions associated with the programme were misused during the previous administration, creating the need for a reassessment of the system. The MP argued that public resources must be managed carefully to ensure that incentives support genuine industrial growth and employment creation.
According to him, the previous policy framework did not produce the expected impact on unemployment figures despite the number of factories presented under the initiative. He questioned why the unemployment situation remained challenging if the programme had created enough opportunities for young people across the country.
“Why did it not reflect in the unemployment rate? It did not because it was just on paper. What we need is a system that creates real jobs for the Ghanaian youth.”
Honourable Kofi Arko Nokoe
The Vice Chairman explained that economic expansion must be connected to sectors capable of absorbing large numbers of workers. He identified agro processing, manufacturing and value addition as areas that could provide stronger employment opportunities when supported with the right policies.
Furthermore, Honourable Nokoe said the country must focus on processing raw materials locally to increase economic value and create jobs. He disclosed that discussions with the Ministry of Trade and Industry had highlighted measures to ensure that exported materials receive some level of processing before leaving the country.
The MP also pointed to the importance of reducing the cost of production for businesses through improved access to electricity, affordable credit and efficient transportation systems. He said young entrepreneurs in communities such as Takoradi and Axim require support mechanisms that allow them to establish and expand businesses.
Additionally, Honourable Nokoe stressed that lower lending rates would provide opportunities for small and medium sized enterprises to access capital. He noted that entrepreneurs involved in agro processing and other productive ventures require financial support to contribute effectively to economic growth.
The Vice Chairman also defended government’s economic direction by arguing that current policies have been designed to address structural challenges within the economy. He said job creation would depend on strengthening productive sectors and creating conditions that encourage private sector investment.
READ ALSO: Growth Without Jobs Not Enough, Ofoase Ayirebi MP Points Out
