The Association called on him to put in place mechanisms that would reduce deficits and debt build-up, and put the economy on a growth path of five percent or more in fiscal 2022.
To this end, GEA urged the government to ensure that the inflation rate at the end of December is within the medium-term range of 8 Â± 2, reducing the monetary policy rate (MPR) to single digits, although the rate is 11.0% as of September 2021.
GEA CEO Alex Frimpong said on Tuesday at a forum to review the 2022 budget and the Ghanaian business environment.
He described the contents of the budget as essential for all employers and the business community and urged the government to stabilize the forex market to prevent the Cedi from reacting to slight disruptions in its major trading currencies.
Mr Frimpong said it would provide a healthy environment for businesses to quickly recover from the impact of the COVID-19 pandemic, further contribute to economic growth and create more employment opportunities.
The government projecting real growth in gross domestic product (GDP) of 5.8% and an inflation rate at the end of December of 8%, he said, âto achieve these goals, the government must remain disciplined. in fiscal consolidation measures by ensuring effective debt sustainability. and streamline spending.
“We therefore urge the government to maintain a good balance between the implementation of revitalization and transformation programs in order to promote private sector growth in a stable macroeconomic environment,” Frimpong said.
Among the recommendations made by the Association regarding the budget and the business environment was that the government ensure the adoption of the tax exemption bill by the first quarter of 2022.
The GEA said the adoption and implementation of the policy “would respond to the overly generous exemption regime and solve the problem of underperforming national income.”
The CEO called for a good domestic credit facility for the private sector to help it recover and compete favorably in the single market window characterizing the objectives of the African Continental Free Zone (AfCFTA) agreement.
The World Bank’s 2020 development indicators show that only 10.88% of financial resources were allocated to the private sector in Ghana last year, compared to 17.24% on average in sub-Saharan Africa (SSA).
Referring to the establishment of the Development Bank of Ghana, he said that for many years the country had struggled to have a capital expenditure framework that would consider long-term financing of projects.
Therefore, the implementation of the concept of development bank as envisioned in the policy would mean that the enterprises of the country would have access to sufficient capital, especially to finance medium and long term projects.
He said it would reduce âchallenges on how to invest in the industry, especially in the manufacturing, pharmaceuticals, hospitality, tourism and hospitality sectors. This will bring more revenue to the government, improve industrialization and increase our job creation. “
Regarding the Ghana COVID-19 Alleviation and Revitalization of Enterprise Support (Ghana CARES) initiative, he urged that âthe government accelerates measures to determine the modalities of implementation, as well as a reliable framework to enable reporting and timely feedback on program key performance indicators. “
Mr. Frimpong echoed GEA’s commitment to the Ghana Beyond Aid program and the government’s economic transformation policies through social dialogue and consultations.
Mr. Ken Ofori-Atta, Minister of Finance, presented the 2022 budget and economic policy statement to parliament last week, said it aims to build a sustainable entrepreneurial nation, consolidate public finances and create jobs.
“In the short term, the government, through its economic revitalization program, will seek to develop the economy with the provision of targeted fiscal stimuli while also ensuring fiscal sustainability to cushion the impact of COVID-19 on businesses. and to facilitate a rapid and strong recovery of our economy, âhe said.