Ghana will maintain fiscal discipline after the expiration of the International Monetary Fund’s (IMF) $918 million bailout to ensure that the economy does not slip into decline, Vice President Mahamudu Bawumia has said.
Speaking at the 2018 Ghana Economic Forum under the theme; “Building a Competitive Economy for Sustainable Growth”, at the Movenpick Hotel, the Vice President said the Akufo-Addo administration has put in place adequate measures to ensure that the economy does not slip into decline again.
In less than a year, the IMF programme is expected to end. However, some market players and the investor community are wondering if government will ensure that the fiscal discipline imposed by the IMF will be maintained.
The Vice President in his address indicated that government has a comprehensive plan to ensure that fiscal discipline and debt sustainability is maintained after the IMF programme.
“Government is putting in place measures to ensure irreversibility of macro-economic gains achieved so far. Understandably, there are concerns in the investor community about fiscal discipline post the conclusion of Ghana’s IMF Programme. We are committed to maintaining fiscal discipline for our sake.
“As a result we stated before coming into office that we are going to implement structural measures to tackle some of the long term structural issues. This include a new fiscal responsible law to cut the budget deficit so that it does exceed 5% of GDP in any year moving from 2019,” the Vice President said.
The Vice President noted in his speech that the new Ghana Card which will also serve as an Electronic pass (E-Pass) for Ghanaians traveling within the ECOWAS region has come to stay.
He added that National ID card will simplify acquisition of passports by Ghanaians going forward since all the data required for the acquisition of passports will be captured on the card.
He therefore urged all Ghanaians to participate fully when the nation-wide roll-out of the exercise begins.
Sino -Hydro Deal and the Bauxite Industry
On the $2 billion dollars Sino-Hydro deal that the government of Ghana has signed with the Chinese firm, Dr. Bawumia explained that Sino – Hydro is not a mining company and would therefore not be participating in the mining of bauxite in Ghana.
According to him, Sino-Hydro will simply be constructing roads, interchanges, bridges and hospitals worth 2 billion dollars.
Government has establish a holding company backed by an Act of Parliament (Ghana Integrated Aluminum Development Corporation).
The holding company will soon enter into joint venture arrangements with potential mining companies to establish a bauxite mine and refinery in Ghana. Sino – Hydro will subsequently be paid by the Government of Ghana through its share of the revenue that will be generated from the mining and refinery of the country’s bauxite.
Ghana Economic Forum
The Ghana Economic Forum was established seven years ago to facilitate dialogue between the private and public sectors in order to improve the business environment in Ghana.
It is also designed to support the development of Ghanaian businesses and contribute to their international promotion.
The Ghana Economic Forum brings together chief executives, investors and financial decision-makers to support the development of Ghanaian businesses and contribute to their international promotion, facilitate dialogue between the private and public sectors to improve the business environment in Ghana.