Government moving forward with joint public-private endeavor to boost post-pandemic economic growth
Revamped Article:
Getting Ghana back on its feet and paving the way to economic growth isn't just a pipe dream – it's the mission of the Ghana Mutual Prosperity Dialogues (GMPD), according to finance minister Ken Ofori-Atta. This initiative, a partnership between the public and private sectors, is geared towards drawing in both foreign and local investments, while promoting shared advancement based on job creation, exports, and import substitution.
During his 2023 mid-year budget presentation, Mr. Ofori-Atta highlighted the government's commitment to creating an environment that nurtures businesses to prosper and encourages innovation. Emphasizing the importance of a robust financial system and critical support for private enterprises, the minister stressed that both sectors are interdependent, and each needs the other to thrive.
He shed light on the raison d'être of the GMPD: to gain a better understanding of the private sector's needs and remove the obstacles hindering the ease of doing business in the country. By engaging with the private sector at an industry level, the state aims to shape forward-looking policies that cater to the aspirations of various sectors.
The expected growth rates for the following four fiscal years are 1.5 percent for 2023, 2.8 percent for 2024, 4.7 percent for 2025, and 4.9 percent for 2026. While these figures promise a promising future, they are not enough to create the necessary jobs and investments essential for a significant economic transformation.
Addressing this issue, the minister plans to design a growth strategy with a focus on promoting private investment and attracting foreign direct investment (FDI). The goal is to create an alluring investment environment that enhances Ghana's global competitiveness.
A crucial driver of this initiative is Ghana's journey towards macroeconomic recovery, which underscores the significance of a broad-based dialogue on FDI. This dialogue brings the private sector and government voices together to tackle challenges in private sector development and retain foreign investors, ultimately boosting Ghana's appeal to both domestic and foreign investors.
FDI is considered a key catalyst for revitalizing economic growth and mitigating the country’s debt burden. The government recognizes the potential of FDI in channeling capital, technology, and knowledge into strategic sectors for sustained growth.
Creating an enticing investment climate requires collective efforts from various stakeholders within the country. Ghana, historically a popular destination for FDI, has a long track record – FDI inflows were valued at approx. $1.3 trillion by the Organisation for Economic Cooperation and Development (OECD) last year.
In 2021, Ghana clinched the second spot as the leading recipient of foreign direct investment, according to the World Investment Report. The country attracted $2.6 billion, a 39 percent increase from the $1.8 billion in 2020.
With such promising potential, the future of Ghana's economy is ripe with opportunities for both domestic and foreign investors. It's time to stand up, team up, and take charge of Ghana's prosperous future together! 🎉💰🇬🇭🌍💼✨
- The Ghana Mutual Prosperity Dialogues (GMPD), as highlighted by finance minister Ken Ofori-Atta, aims to attract both foreign and local investments, fostering shared advancement through job creation, exports, and import substitution.
- The financial minister emphasized the importance of a robust financial system and critical support for private enterprises in nurturing business growth and promoting innovation.
- To create a more conducive environment for investments, the minister plans to design a growth strategy that focuses on attracting foreign direct investment (FDI), emphasizing its potential to channel capital, technology, and knowledge into strategic sectors.
- Ghana's increasing popularity as a destination for FDI is evidenced by the World Investment Report, which placed it as the second leading recipient of foreign direct investment in 2021, with a significant increase from the previous year.
- To maintain Ghana's appeal to both domestic and foreign investors and continue its economic growth, collective efforts from various stakeholders are necessary to create an enticing investment climate, as Ghana has historically been a popular destination for FDI, with FDI inflows valued at approximately $1.3 trillion by the Organisation for Economic Cooperation and Development (OECD) last year.
