Connect with us

Business

Ghana’s fiscal deficit to GDP to end 2022 at 9.8% – Fitch Solutions

Published

on


Despite government’s fiscal consolidation efforts, Fitch Solutions is forecasting Ghana’s fiscal deficit to Gross Domestic Product (GDP) ratio in 2022 at 9.8%.

This is in line with the IMF forecast of 9.8% for this year, but far wider than the government’s target of 7.4% of GDP.

Speaking at the recent Sub Saharan African Update, Country Risk Analyst at Fitch Solutions, Ben Weaver, said the high financing gap will constrain growth.

“Looking into Ghana’s fiscal position following increased spending on health and household support due to COVID-19 pandemic, Ghana’s fiscal deficit widen to an estimated to 11.3% in 2021. This is well above historical level”.

“Despite the fiscal consolidation efforts, we forecast that the country will record a fiscal deficit of 9.8% of GDP in 2022, which is well above the government’s target of 7.4%.”

The International Monetary Fund in its April 2022 Fiscal Monitor Report, projected Ghana’s tax revenue to GDP ratio to increase in 2022 to 16.5%, from 14.7% in 2021. This will be a vast improvement compared to the rates registered during the last 10 years.  

In 2023 and 2024, the country’s tax-to-GDP ratio will however fall to 16% and 16.2% respectively, it added.

The Fund also said government expenditure will decline to 25.2% of GDP in 2022, from 26.3% recorded in 2021. This is expected to put the fiscal deficit to GDP ratio at 9.8%.

However, in 2023 and 2024, the Fund is forecasting expenditure-to-GDP ratio of 25.2% and 23.9% respectively.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Business

Women in timber set agenda to drive afforestation for the survival of industry

Published

on


The Association of Women in Timber-Ghana (WiTG) has called for gender equity in timber processing factories.

The Association laments women have lost opportunities in the timber value chain due to the under-representation of women in forest governance.

A study conducted by the Global Timber Forum (GTF) revealed the ratio of men to women in timber processing factories globally is about 73% to 27%.

The Association of Women in Timber-Ghana (WiTG) has been launched in Kumasi to help build and increase the participation of women in the sector.

President of the group, Ernestina Owusu Banahene, says the Association will join forces with research institutions to tackle issues of reforestation for future supply of raw materials.

Women in timber set agenda to drive afforestation for the survival of industry
President of the group, Ernestina Owusu Banahene

“Considering the role of women in this male-dominated sector, I believe we deserve the needed recognition, it was prudent for women in the sector to come together to project their importance and contributions in the forest sector, hence the Women in Timber-Ghana (WiTG) Association. 

What the WiTG platform offers is a tailored solution to addressing industry challenges that are affecting women,” she said.

 The Minister of Lands and Natural Resources, Samuel Jinapor, believes the Association will help women in the forest sector to showcase their abilities to improve activities in forestry.

He was represented by Edith Abruquah, the Acting Executive Director of the Forestry Commission.

“Participation of women in the sector is arguably often overlooked. 

I was elated when I received a briefing on this laudable initiative of establishing a Women’s Group to serve as a platform to promote the contributions of women in the sector while offering opportunities for building their capacities to ensure that they manage their businesses viably.

I am convinced that this Association, in addition to other ongoing initiatives by the Ministry of Lands and Natural Resources will prove useful in addressing gender inequality for every Ghanaian woman in the forest sector to showcase their abilities and capacities in order that society at large will be beneficiary,” Mrs. Abruquah read on behalf of the sector minister

Women in timber set agenda to drive afforestation for the survival of industry

The launch of the Women in Timber-Ghana Association in Kumasi was on the theme: “Strengthening Women’s Participation in Forestry and Wood Industry in Ghana”.

The association currently has 150 registered members.



Source link

Continue Reading

Business

Major players in capital market across West Africa push for speedy integration  

Published

on



Rev. Daniel Ogbarmey Tetteh

Major players in the capital market across West Africa have intensified efforts to integrate their operations, to enhance cross border trading.

According to the stakeholders, the move to integrate, which began about five years ago was distorted due to uneven regulations among capital markets in the sub region.

Speaking on the first day of the two-day West Africa Capital Market Conference 2021, in Accra, the Director General of the Securities and Exchange Commission, Rev. Daniel Ogbarmey Tetteh stressed that countries with stronger capital markets have decided to start the integration and later allow others to join.

He stressed the need to move faster towards integration since it will enhance the capital market performance in the sub-region.

“Capital markets are key areas for development because they provide funds for long term capital investment. The interesting bit about having integration in the sub-region is that it will enable an issuer to have access to more fund in the region for capital expenditure”.

He stated for example that an integration will provide an opportunity for Nigerians to invest in Ghana and vice versa.

The West Africa Securities Regulators Association (WASRA) is the regional association for Capital Market Regulators in West Africa with the mandate of facilitating corporation and consultation among Capital Markets in the West African region.

As a flagship programme of WASRA, the conference is a biennial event that seeks to present the West African region and indeed Africa as a whole the opportunity to address important issues related to the orderly growth and development of the regional and continental capital markets.

The conference brought together relevant stakeholders and experts including but not limited to regulatory agencies, market operators, inter-regional economic bodies, and stock exchange managers.

The Managing Director of the Ghana Stock Exchange (GSE) Ekow Afedzie emphasized the need for a quick integration of the capital market on the continent.

“The processes have delayed for a while and for some observers the integration can start gradually so that other countries can join later,” he said.



Source link

Continue Reading

Business

Ghana hosts 31st Annual Meeting of Board of Governors of ACBF

Published

on



The Government of the Republic of Ghana is hosting the 31st Annual Meeting of the Board of Governors of ACBF from May 23rd, 2022, at the International Conference Center.

The main objective of the meeting is to seek broad policy and strategic direction for the foundation as well as discuss sustainability issues.  

In this regard, the Board of Governors will receive from an update on the activities of the Secretariat and the 2021 Financial Statements from the Executive Board.

With 2022 being the last year of the current strategy (2017-2022), the meeting will also discuss what is on the horizon and consider the roadmap to develop the next strategy.

The 31st Annual Meeting presents an opportunity to showcase the continued relevance of the foundation and increase its visibility. This is also an opportunity to deepen the partnership with member countries and strategic institutions such as multilateral and regional partners.

The Board of Governors of ACBF which is the highest policy making body of the Foundation comprises representatives of ACBF member countries and non-African countries, as well as the World Bank, the African Development Bank (AfDB), and the United Nations Development Programme (UNDP). The Governors are usually African Ministers of Finance and/or Economic Planning, Directors-General or other high level representatives of international development cooperation agencies for non-African countries.

The Board of Governors has a bureau of three members, (Chairperson and two Vice-Chairpersons) who are elected annually.

The Minister of Finance, Ken Ofori-Atta, is the current Chair.

Its main responsibility is to set the broad policies for the operation of the Foundation, as well as the appointment of the independent members and chairperson of the Executive Board.



Source link

Continue Reading

Trending