Ghana’s Finance Minister, Cassiel Ato Forson, gathered with over 22 Managing Directors of banks to chart a new course for the country’s economy. The meeting was a call to action, a candid discussion about the heavy lifting required to restore macroeconomic stability and foster sustainable growth.
The minister’s message was clear: Ghana needs a robust and resilient economy, and to achieve this, tough decisions must be made. Massive investment cuts are on the horizon, and goods and services expenditure will be reset to 2023 levels. The target is ambitious: a primary surplus of 1.5% to consolidate gains and rebuild confidence.
But that’s not all. The minister also announced plans to submit a fiscal responsibility rule to Parliament, a debt ceiling that the Ministry of Finance cannot exceed. This move demonstrates a commitment to fiscal discipline and a determination to avoid the turbulence of 2022.
The Domestic Debt Exchange Programme (DDEP) also got a mention. The minister reassured the gathering that Ghana does not intend to default on its obligations. All outstanding holdouts have been paid, and sufficient buffers are in place to meet DDEP obligations this year.
The meeting was a testament to the power of collaboration. The minister acknowledged the crucial role of the banking sector in Ghana’s development agenda and expressed his desire to work together to build a resilient financial system.
With the assurances of Dr. Johnson Asiama, Governor of the Bank of Ghana, and the insights of Mr. Kwamina Asomaning, President of the Ghana Association of Banks (GAB), the minister’s plan seems to be gaining traction.
As Ghana embarks on this new economic journey, one thing is clear: the country’s future is bright, and with collective effort, a stronger, more resilient economy is within reach.
Ruth Abla ADJORLOLO
