National Economic Dialogue recommends roadmap for sustainable growth

The National Economic Dialogue has developed a comprehensive set of recommendations aimed at stabilising and transforming the country's economic landscape. 

The detailed blueprint focuses on macroeconomic stability, sustainable growth, private sector development, infrastructural enhancement and structural adjustments.

Presenting the communique at the end of the two-day event, the Chairman of the Planning Committee, Dr Ishmael Yamson, said the primary objective was to attain macroeconomic stability and restore confidence in the economy through enhanced coordination between fiscal and monetary policy operations.

The recommendations include implementing major tax reforms to expand the tax net, specifically targeted at property taxes and revised Value Added Tax (VAT) rates.

The proposals call for addressing revenue leakages through compliance and adherence with the Public Financial Management Act, 2016 (Act 921) as well as reforming the fiscal responsibility legislation.

A key focus emerged on reforming state-owned enterprises, with an emphasis on enforcing transparent financial reporting and implementing good corporate governance practices.

Dr Yamson, a business executive who has played various roles in supporting different governments, highlighted the need to strengthen expenditure controls in public agencies, developing effective internal audit resources and establishing a credible medium-term expenditure framework to ensure adequate project funding before commencement.

Inclusive growth

The dialogue strongly advocated inclusive and sustainable growth to drive economic transformation.

A significant recommendation is the establishment of new agricultural institutes to enhance the sector's expertise, drive innovation and stimulate interest in industrialised agricultural production.

The proposals also include introducing a stimulus tax system for agricultural inputs and outputs to promote efficiency and reduce sector burdens.

Developing policies to address skills gaps and align with current and projected developmental priorities was another critical recommendation.

The dialogue emphasised the need to create comprehensive strategies that bridge existing skills deficiencies in the national workforce.

Promoting private sector

Promoting private sector-led growth emerged as a central theme.

The recommendations call for structuring and institutionalising a platform for sustained private-sector engagement.

This includes providing hands-on support to businesses to maximise trade opportunities, directing banks to enforce Capital Reserve Ratio requirements towards private sector credit creation, and implementing faster business registration and licensing processes.

Infrastructure

The communique also proposed the introduction of a range of investable asset classes in infrastructure through the Ghana Stock Exchange and the Ghana Infrastructure Investment Fund.

Proposals also included the need to revise pension fund investment regulations to align with infrastructure projects, ensuring sustainable development and long-term economic growth.

Dr Yamson said the energy sector was a particular focus, with recommendations for ensuring effective policy execution to improve efficiency, sustainability and service delivery.

He called for a comprehensive review of the Electricity Company of Ghana's (ECG) operations, with reforms aimed at positioning the company for potential private-sector involvement.

“There is the need to strengthen ECG's billing and collection systems and enforce cost-cutting measures, he said.

He said the Ghana Cocoa Board (COCOBOD) must also return to its role as an agency under the Ministry of Finance, ensuring a focus on core mandates and protecting farmers' interests.