Trade Minister defends Gov't 2021 budget, policies for AfCFTA implementation

As Ghanaian businesses gear up to explore and harness opportunities within the African Continental Free Trade Area (AfCFTA) in the aftermath of the COVID-19 pandemic, the Minister for Trade and Industry, Alan Kwadwo Kyerematen, has defended programmes and policies of the Government of Ghana as indicated in the 2021 Budget and Economic Policy Statement.

Addressing participants of this year's edition of the Deloitte Ghana Economic Dialogue, held under the theme, "2021 Budget Statement: Making Ghana a Hub for AfCFTA," Mr. Kyerematen outlined the government of Ghana’s plans intended to promote business activities across the country which include the completion of airport projects in Kumasi and Tamale to boost air travel in the sub-region.

Mr. Kyerematen said the Government in response to the global pandemic, has over the last year, introduced policy interventions to stimulate economic recovery in the form of incentives and reliefs to businesses and households.

"The primary objective of the 2021 Budget Statement and the Medium Term Fiscal Framework is to implement measures to mitigate the impact of the pandemic with a view to returning the economy to strong and sustainable growth while protecting lives and livelihoods."

"The focus of the Budget and the Medium Term Plan is to restore and sustain macroeconomic stability anchored on fiscal discipline and ensuring debt sustainability; Return the economy to the fiscal responsibility threshold of 5 per cent fiscal deficit and a positive primary balance by 2024; Implement reforms to increase revenue mobilization and efficiency of public expenditures and revitalize and transform the economy through the implementation of the Ghana COVID-19 Alleviation Revitalization and Enterprise Support Programme (CARES)."

According to Mr. Kyerematen, the budget will also focus on building a robust financial sector to support growth and development; Providing a supportive private sector environment for entrepreneurial development and for domestic businesses and Foreign Direct Investment to thrive; and deepening structural reforms to make the machinery of government work more efficiently and effectively to support socio-economic transformation.

He said AfCFTA is expected to play a significant role in Ghana's post-pandemic economic recovery and thus the above-listed programmes are prioritised in the National Action Plan to support its implementation.

Following the merging of African Regional Economic Communities (RECs), of which ECOWAS is one, into a single duty-free and quota-free AfCFTA, vast market opportunities have been created for trade, investment, employment creation and other economic activities.

The 2021 edition of the Deloitte Ghana Economic Dialogue focused on Ghana's preparations towards becoming an important trading centre for AfCFTA, which is headquartered in Accra.

A panel of industry experts included John Awuah (Ghana Association of Bankers), Abena Osei Asare (Former Deputy Minister, Finance), Yaw Appiah Lartey (Financial Advisory Leader, Deloitte Ghana), Godfred Bopkin (University of Ghana) and Seth Twum Akwaboah (CEO, AGI).