Views: 110 Ishmael Junourgh, Accra, August 1,2019, thur, 3:00pm A national development forum yesterday has advised the government to work on its finan...
Ishmael Junourgh, Accra, August 1,2019, thur, 3:00pm
A national development forum yesterday has advised the government to work on its financial management credibility to attract more investors into the country.
According to the Chairman, Economic Policy Committee, NDPC, Dr. Nii Kwaku Sowa, investor trust could be boosted by the government demonstrating a robust macro-finance system.
Also, it needed to strengthen the institutions to enforce law and order, improve the financial sector, and ensure well regulated and effective financial system.
“Once these conditions are satisfied finance is bound to flow in; only that, special purpose vehicles would have to be established to source and direct the funding to the appropriate development projects.”
But, currently, the country aspires to attain high middle-income status, after exiting the IMF, and declaring Ghana beyond aid mantra.
Dr. Sowa revealed this in his keynote address on—financing development in Ghana over the next forty years—at a forum named: “Innovative Financing for Ghana at 100 Development Agenda,” in Accra.
It was the third national development forum by the National Development Planning Commission. (NDPC)
He said: “No investor will give up resources where there is doubt about recouping it,” went on to say that “finance flows where the market is fair and efficient.”
Dr. Sowa drew in the country’s infrastructure deficit, and inadequate public services. Now he said it was crucial to take a second look at the budget, examine how much resources the country has, review the source of the resources, and weigh how the resources were used up.
He said there was a need for the country to improve in the mobilization of revenue. The revenue from Taxation was low, “equivalent of about 17.6 percent of the GDP,” comparing to that of some 21 countries in the continent trying to run along with a trend that suggests tax revenues should average between the range of 23-25 percent of GDP to manage the fiscal well.
He said there was the need to improve property tax and to show transparency in gold revenue as in oil. Currently, non-tax revenue for natural resources is four percent of the GDP.
He called for a reflection into how aid, grants, and loans from capital expenditure had been used in the country.
He said those funds were often applied in infrastructure that was never completed, and the country might be losing as much as 25 million dollars to such uncompleted projects every year.
He said there was the need to grow the non-fiscal financing as support to the macro-finance environment.
The country should strengthen the financial institutions— the cleanup of the system recently was the right decision to bolster investment trust in the banking sector.
Also, reviewing the capital market could pay off.
He said the country needed to deepen the impact of traditional export, to take advantage of the improving stock exchange, and to make good use of the growing financial schemes and the bond market.
A panel discussion was led by the following personalities: Mrs. Patience Akyianu, Group CEO Hollard Ghana; Dr. Yao Graham, Coordinator, Third World Network; Mr. Alhassan Andani, CEO, Stanbic Bank Ghana, Dr. Sam Mensah, CEO, SEM Capital Advisors Limited; Mr. Sampson Akligoh, Director, Financial Sector Division, MoF.; Dr. Nii Kwaku Sowah, Chairman, Economic Policy Committee, NDPC.