National Economic Dialogue Outlines Policy Roadmap for Economic Recovery
The recently concluded National Economic Dialogue (NED) has presented a six-point policy framework aimed at accelerating economic recovery, ensuring long-term stability, and fostering sustainable growth.
The recommendations, issued by the Committee overseeing the Dialogue, set out an ambitious reform agenda for the Government.
Restoring Macroeconomic Stability
Policymakers must prioritize macroeconomic stability to rebuild confidence in the economy. This entails enhancing fiscal and monetary policy coordination, reviewing the foreign exchange retention framework, and implementing comprehensive tax reforms, including broadening the tax net, revising VAT rates, and tackling revenue leakages.
Additionally, a comprehensive overhaul of public financial management (PFM) is necessary, ensuring compliance with the PFM Act, 2016 (Act 921) and reforming the Fiscal Responsibility Act, 2018 (Act 982).
Strengthening corporate governance in state-owned enterprises (SOEs) and enforcing fiscal discipline within public agencies remain crucial to expenditure control.
Pursuing Inclusive Growth
The Government is urged to drive economic transformation through industrialized agriculture. This includes establishing and enhancing agricultural institutes to boost innovation and skills development. A streamlined tax regime for agricultural inputs and outputs will also enhance efficiency and sector competitiveness. Addressing skill gaps through strategic workforce planning is another priority.
Unlocking Private Sector GrowthTo unlock the full potential of the private sector, the Government should institutionalize structured engagement with businesses, strengthen awareness of the African Continental Free Trade Area (AfCFTA), and provide targeted support to firms.
Directing a portion of banks’ cash reserve requirements to credit creation and streamlining company registration and licensing processes will also enhance the business environment.
Addressing Infrastructure Deficiencies
A well-functioning infrastructure system is pivotal to economic development. The NED proposes introducing investable asset classes via the Ghana Stock Exchange (GSE) and the Ghana Infrastructure Investment Fund (GIIF), revising pension fund investment rules to align with infrastructure projects, and enforcing strict performance management in road construction and maintenance. The Road Fund must be safeguarded for maintenance and operational improvements.
Structural and Policy Reforms
Energy sector efficiency is essential, requiring a full review of the Electricity Company of Ghana (ECG) and renegotiation of Independent Power Producer (IPP) contracts.
Measures to tackle illegal mining, improve cocoa sector efficiency, and reposition COCOBOD under the Ministry of Finance are also recommended. Land reclamation and afforestation strategies must be prioritized.
Governance and Accountability
The Government is encouraged to advance constitutional reform, enhance parliamentary oversight, introduce a regulatory framework for political party financing, and strengthen independent governance institutions. Swift implementation of these measures is critical to economic recovery and long-term stability.
