Ghana looks to consolidate its steady economic performance

In the wake of the new budget presented by the government of Ghana for 2020, Big Four accounting and advisory firm PwC has indicated that the government is looking to consolidate the economic gains that have flowed in recent years, in a bid to maintain a degree of stability in the economy.

According to PwC, the new budget statement is centred around eight significant tenets, which address various dimensions of economic growth. These include: Domestic revenue mobilisation, business regulatory reforms, intensified drive for foreign direct investment, digitalisation, accelerated infrastructure development, international financial services centre, enhanced financial support to local enterprises and science & technology.

Ghana’s economy has been performing strongly across most of these areas in recent years. Among the more politically stable countries in Africa, Ghana has been looking to capitalise on its strong position in the region to drive growth through clearly delineated strategies. The government has been centrally involved in these efforts.

One key strategy has been a strong investment in the domestic businesses. Small and medium enterprises in Ghana have long been recognised as key to economic growth, and the public and private sectors have been active in their support for local entrepreneurship. Many have been promoting the integration of technology within the business environment.

Experts have touted Ghana as a potential digital hub in the near future, and the government has been investing in realising this scenario. According to PwC, the government’s commitment to driving these factors while working to maintain stability is noteworthy.

“Overall, we commend Government for presenting a promising Budget for 2020 that seeks to consolidate the macroeconomic gains of the last few years. We believe that its successful execution depends critically on Government's further efforts at enhancing domestic revenue mobilisation, for which more specific and targeted initiatives are required, combined with a credible and enduring political commitment to fiscal discipline,” wriote Vish Ashiagbor, Country Senior Partner at PwC Ghana.

“Timely and the full implementation of the programmes outlined in the Budget and the reform agenda will also be important. We look forward to 2020 being a year in which the growth and shared prosperity that we all seek as Ghanaians is reflected in our day to day lives. We also look forward to working with Government and all other stakeholders to achieve this ultimate goal,” he added.