An investment firm, C-nergy Ghana, recently unveiled a comprehensive review of Ghana’s economic performance, highlighting disparities between the country’s economic growth in local and foreign currency terms. According to the firm’s 2024 Budget Review Document shared with Graphic Business, the nominal GDP growth doubled in cedi terms between 2017 and 2022 but displayed a significant decrease in dollar terms by approximately 5%.
The review detailed that Ghana’s nominal GDP surged from GH₵262 billion in 2017 to over GH₵610 billion in 2022, with an anticipated growth projection exceeding GH₵850 billion by the close of 2023. However, concerns were raised about the economy’s reliance on wholesale and retail trading, indicating a heavy dependency on imports, which could hinder sustainable economic development.
While the Finance Minister, Ken Ofori-Atta, recently touted a nominal GDP projection of GH₵1 trillion by the end of 202犀利士 4, C-nergy highlighted the comparatively modest growth forecast of 2.8% for 2023-2024. This projection is notably lower than Ghana’s peer countries such as Cote d’Ivoire, DRC, Benin, and Kenya.
The investment firm cautioned that while reaching the GH₵1 trillion milestone is noteworthy, it might not necessarily translate into significant domestic output growth or improvements in the standard of living for Ghanaians. The report emphasized the importance of productive activity expansion in sectors like industry, agriculture, and services, which drive employment, macroeconomic stability, and income equality.
Sectoral Analysis and Recommendations:
Education Sector: The report underscored the need for increased education sector funding to achieve a net export status of human resources within the sub-region. It called for additional investments in basic education, highlighting the slowdown in investment in this sector since the inception of the Free SHS policy.
Roads Infrastructure: While commending investments in road infrastructure, the firm stressed the significance of completing major roads like Accra-Tema Motorway, Accra-Takoradi, and Accra-Kumasi highways to lower business costs and food prices. It recommended interventions to expedite payment to road contractors, including road bonds, tolls, and aggressive Public-Private Partnerships (PPPs).
One District, One Factory (1D1F): C-nergy urged a focus on manufacturing products that leverage Ghana’s competitive advantage, particularly in the agriculture sector. Highlighting the potential in agro-processing due to Ghana’s abundant arable land and favorable climate, the report suggested prioritizing staple food processing like rice, tomatoes, and cassava for import substitution and increased exports.
The investment firm’s analysis concluded by stressing the potential of the agro-processing industry for successful industrialization, citing examples like local fruit juice brands’ success in export markets as indicators of the sector’s considerable potential.