Monday, 14th July, 2025
Hon Eric Afful
Amenfi West
Mr Speaker, thank you so much and I would like to take the opportunity to make this Statement to highlight the positive trend of the economy of Ghana to educate and encourage ourselves as Ghanaians in decision-making, households, businessmen and even Governments which have signed social contracts with these people.
Mr Speaker, governance is about seeking the welfare of the people, especially about their respective standards of living in a country. This is measured by the amount of goods and services available for consumption as well as its affordability by adopting a mechanism used to allocate or distribute the goods and services among the citizenry in a country.
Mr Speaker, the effectiveness and efficient mechanism designed to allocate the said resources are measured by certain economic and financial indices, data and statistics in a country. Some of these include the Gross Domestic Product (GDP) of a country, the rate of inflation which measures the general price levels of goods and services in a country over a period of time, the gross international reserves of a country, the Balance of Payment (BoP), the primary fiscal balance of trade, the national debt level of a country and its associated national debt to GDP ratio.
Mr Speaker, the Consumer Price Index (CPI) of a country is also a good measure to this effect. The Central Bank Monetary Policy and interest rates also counts a lot. Above all is the strength of the cedi in relation to the hard currencies in the world such as US dollar, the UK Pound S0terling, the euro in the European countries and other currencies in the world.
Mr Speaker, data and statistics available, according to the 124th Report of the Bank of Ghana (BoG) Monetary Policy Committee (MPC) and figures from the Ghana Statistical Service (GSS) indicated that the economy of Ghana is striving on a growth path which will eventually lead to sustainable growth and development in the country.
Mr Speaker, inflation which was taken in January 2025 at 23.4 per cent, now stands at 18.3 per cent as at May 2025, which has been programmed to hit mid-teens by the middle of the year. According to the report on the domestic front, the banks high frequency indicators point to a sustained pick-up in economic activity. The updated composite index of economic activity increased by 2.3 per cent on year in March 2025 compared to 1.0 per cent over the same period last year, 2024.
In addition, Mr Speaker, the Purchasing Managers Index (PMI) rose above the 50-benchmark as output and new orders increased, signalling improved growth and prospects. According to the 124th Report of the BoG Monetary Policy Committee, it indicates that based on inflationary pressures and options above the macroeconomic conditions, the latest Confidence Survey showed a significant improvement in business and consumer indices, the highest in the last seven years.
Mr Speaker, the headline inflation has declined consecutively within the year according to BoG by 2.6 percentage points to 2.12 per cent in April 2025 and 18.3 percent in May 2025. This resulted in reduction of price of goods and services in the country. The primary fiscal balance on commitment basis has also improved significantly in the first quarter of 2025.
Mr Speaker, according to the report, at the end of March 2025, the stock of public debt stood at GH₵769.4 billion, representing 55 per cent of GDP compared to GH₵726.7 billion, also representing 61.8 per cent of GDP at the end of December 2024. Mr Speaker, according to the current Report of the BoG, the external sector has continued to improve. Mr Speaker, the provisional current accounts earned a surplus of US$2.1 billion at the end of the first quarter of 2025, mainly driven by high prices and production volumes of gold and cocoa and strong remittance inflow.
Mr Speaker, the overall balance of payments registered is a surplus of US$1.1 billion in the first quarter of 2025, with a significant reserve accumulation. Mr Speaker, the strong external performance resulted in a significant reserve accumulation. According to the Report, the gross international reserve amounted to US$10.7 billion in April 2025, equivalent to 4.7 months of import cover of goods and services.
Mr Speaker, the gross international reserve has been programmed to hit 4.0 months of import cover at the end of 2025 to the 2025 Budget Statement and Economic Policy. This shows that, broadly, the external sector outlook remains favourable, likely anchored on expectations of increased gold and cocoa receipts, as well as inflow from remittances. Mr Speaker, according to the Report, the cedi has rebounded strongly against the major trading currencies, driven by a combination of factors, including the tight monetary stance, ongoing fiscal consolidation, record reserve accumulation, strict enforcement of foreign exchange rules, and improved market sentiment.
Mr Speaker, on 21st May, 2025, the cedi had appreciated against all currencies. Mr Speaker, the Ghana cedi appreciated by 24.1 per cent against the US dollar, 16.2 per cent against the British Pound Sterling, and 14.1 per cent against the euro. Mr Speaker, the Monetary Policy (MPC) Report by the BoG still holds the monetary policy reach at 28 per cent. Mr Speaker, Ghana’s economy continues to show more strides locally and internationally. The economy is growing rapidly and has seen an advantage internationally.
Mr Speaker, due to the current performance of the economy, the Switzerland government has awarded a grant of US$77 million to support the development of a resilient and forward-looking economy of Ghana. Switzerland has pledged its support to Ghana through economy, trade, governance, democracy, peace and security, environment and climate change, as well as sustainable development. Mr Speaker, I would therefore entreat all to simply support the Government in achieving the targeted financial and economic indices stated in the 2025 Budget Statement and Economic Policy.
Thank you, Mr Speaker, for the opportunity.
Hon Nana Osei-Adjei
New Juaben North
Mr Speaker, thank you very much for the opportunity.
Mr Speaker, I am going to be very mindful of Order 93(5), but since it is a Statement that highlights the positive strengths of an economy, you give me a bit of latitude to do some comparison because one cannot speak on the economy without doing a little bit of comparison. Mr Speaker, an economy Thank you very much, Mr Speaker. This is a good Statement by the respected Chairman of the Committee on Economy and Development. He has elaborated on a lot of indicators.
Mr Speaker, an economy that is seeing positive strengths should, as a matter of fact, see price stability in the country. As a matter of fact, there should be full employment in the country. Mr Speaker, if I refer to page 4 of the Statement, the respected Chairman talks about Marginal Propensity to Consume (MPC) rate of 28 per cent.
Mr Speaker, MPC rate of 28 per cent is how much the commercial banks are getting from the Central Bank. Mr Speaker, if you go on to the street, the interest rate in most of the banks is between 33 per cent to 39 per cent. In an economy that is showing positive strengths, we are not experiencing interest rates that are good for the consumers. Mr Speaker, this economy that is showing positive strengths has a lot of inefficiencies.
Mr Speaker, an economy that is showing positive strengths is directly proportional to economic growth. If it is directly proportional to economic growth, then the managers of the economy should be implementing expansionary fiscal policies. Mr Speaker, but what do we see now? We are seeing contractional fiscal policies that is hindering employment.
Mr Speaker, I will end by saying that we spent a lot of time in this Chamber agreeing to the d-Levy. Mr Speaker, what do we see now? Just the throw of stones from Israel to Iran forced this Government, an economy that is showing positive strengths, to stop the implementation of the d-Levy. Mr Speaker, I say that it is the throw of stones because it is nowhere compared to what was happening in Ukraine and Russia. In Iran and Israel, they are just throwing stones and an economy that is showing positive strengths has not been able to implement the d-Levy.
Mr Speaker, I will say that this Statement is good but I will advise the respected Chairman of the Committee on Economy and Development to bring this Statement again in December so that we can actually compare the figures.
Mr Speaker, thank you very much for the opportunity.
Hon John Abdulai Jinapor
Yapei Kusawgu
Thank you very much, Mr Speaker, let me commend the maker of the Statement for the research he has conducted.
Very in-depth, very accurate, and he gives the timelines, and I find this very educative. Beyond the politics, what we are doing is an academic exercise that helps all of us, and I think that we should encourage such research to anchor what we do here in Parliament. Facts are facts. Facts are sacrosanct. One may put an interpretation on the facts, but facts can only be one. He has given the facts about inflation, exchange rates, GDP growth, debt to GDP, the primary balance, the current account, the fiscal balance, and all that. Are they accurate or not? They are accurate.
If one has a counter-information, the person should put it out here. If one wants to put an interpretation on it, that is their own opinion. Is it true that inflation has improved? It has improved and so if you see prices going up— when they say inflation is low, it does not mean prices are coming down. It simply means that the rate at which prices are going up is slowed down. He did not talk about disinflation. He did not talk about deflation. He said inflation is lowering and that is a fact. He spoke about the exchange rate. Is it doing well or not? Year on year, it is doing well and to say that it has not translated, no, there is something you call lag. The lag, or the transmission mechanism in economics.
The fact that Mr Speaker looks healthy today, looking handsome, does not mean he ate today. It could be that yesterday’s food, the day before yesterday’s food, which is “T-1” is what is accounting for today. That is why when one is computing an equation, one accounts for the lag or the previous year of the dependent variable in order to make sure that what you are doing is robust and so please, the fact that one has not seen prices going down immediately does not mean it would not go down. What you want to do is to sustain this positive trend for a period of time because prices are downward sticky. Prices easily go up; they do not easily come down.
So, I think that, Mr Speaker, let us rather find out how we can support Government to anchor these positive developments and make them sustainable. Because the current trajectory is not just about GDP growth. We are talking of inclusive, sustainable growth that translates into job creation and for me, having attained these positive indices, the next thing we should be looking at is how we can translate that to create jobs for the people of Ghana and I think that if we focus on that, it will help us very much.
Mr Speaker, he talks about expansionary fiscal policy. When you reduce taxes, that is an expansionary fiscal policy. It means that you are putting money in the pockets of the people. If Government spends, that is an expansionary fiscal policy. If you lower interest rates, that is an expansionary fiscal policy. So, I do not understand what other expansionary fiscal policy he wants to see. Look, Mr Speaker, when something is good, admit that it is good.
Mr Speaker, no as for that one, these two Ladies seated here are beautiful by whatever standard. So, you cannot argue with— Mr Speaker, these two Ladies, by all standards, by whatever measure, are beautiful. Whether you like them or you hate them, they are beautiful. Even Mr Speaker is nodding his head. The fact that Mr Speaker is nodding his head attests to the statement I am making—
Mr Speaker, in conclusion, let me commend the maker of the Statement for that in-depth research but also advise Government and all of us, including our Members on the other Side, to support Government on this positive trajectory. So, that we can continue to strengthen and anchor the Ghanaian economy and make it the economy that we all aspire to have.
Thank you very much, Mr Speaker.
Hon Tweneboa Kodua Fokuo
Manso Nkwanta
Mr Speaker, thank you for the opportunity and I want to use this opportunity to thank the Hon Member, the Chairman of the Committee on Economy and Development for the Statement made.
Mr Speaker, indeed, there has been improvement in some macroeconomic parameters this year and that is good for Ghana. However, we need to understand and unpack the basis for these improvements that we have seen. For macroeconomic indicators, what is important is their sustainability. It is not the point-in-time figure that we see. So, we need to understand the basis for their improvement. We need to understand why they are where they are. If you look at the first indicator that we are all talking about, which is the value of the local currency —
Mr Speaker, this has been debated severally and I would be brief. There is no doubt that the trade issues that we have had around the world, starting from actions that were taken by the United States Government, have actually impacted the strength of our local currency. Because based on that trade issues around the globe, we have seen major trading currencies losing value on their own. So, relatively, it is making our cedi look good.
Mr Speaker, some other indicators that have supported the strength of the cedi is the gold reserves and there is no doubt about that. But it is factual that, this year, the amount of gold reserves that we have added is just about one metric tonnes. So, it is not that much.
Mr Speaker, again, the issue of balance of payment is one of the key economic metrics that actually supports the strength of the local currency. Yes, if we look at the trend, the balance of payment has gone up as indicated by the maker of the Statement. But if we read further to also understand what is behind the balance of payment, we would understand that, yes, two key commodities of the country: cocoa and gold have supported a balance of payment.
So, we ask ourselves, cocoa and gold, especially, cocoa, is it that we have done something structurally different to produce more cocoa or what has happened? If one looks at it, they would understand that it is because the world trade price of cocoa has improved. But is it sustainable? We do not control world market price. So, if balance of payment has gone up because market prices have gone up, we cannot commend ourselves for that. Actually, what is worrying is the light crop season for cocoa this year.
We have been told by Ghana Cocoa Board (COCOBOD) that, this year, the volumes would be short by 10,000 metric tonnes. So, we should be worried that the volume of cocoa for this light crop season is rather going down. So, if world market price goes down now, we are done and the balance of payment that we are priding ourselves in would be nothing to talk about.
Mr Speaker, another point is inflation. Now, we have seen inflation trending down, which is good for the country. It gives value to everything. But let us ask ourselves, with inflation, what have we done to send inflation tumbling? Have we done anything specifically to send inflation tumbling? That is the big question. If we look at inflation, we would understand that the reduction is not coming from the food basket; it is rather coming from the non-food basket and where we are benefiting is also not determined by us.
We had the price of crude oil going down earlier in the year, which led to transport fees also coming down. All these impacted to send inflation down. If we look at the food segment, inflation has not gone down that much. It is really insignificant. So, we ask ourselves that what have we really done to bring inflation down? If it is based on some global trade crisis, like fuel, then we should not pat ourselves on the back.
Mr Speaker, in all, I would say it is rather too early for anyone to be patting himself on the back because all that we are seeing are issues that are happening across the globe and we are benefiting. If we look at trade tariffs by the United States Government, we had a pause of about 90 days. This 90-day period is ending and right away, we would now see the real effects on us. On that basis, we will now really be assessing ourselves if we have done something special to see these metrics improving.
Mr Speaker, in all, I would say it is rather too early for us to start partying that we have made macroeconomic parameters look good. These are based on international issues of which we have not played much part.
I thank you very much, Mr Speaker.
Hon Dickson Kyere-Duah
Berekum West
Mr Speaker, I rise to commend the Hon Member, who is also the Chairman of the Committee on Economy and Development, for elucidating the economic gains that this country has chalked under the governance of H. E. John Dramani Mahama and the prudent economic management of the Minister for Finance and the other Ministers of State.
Mr Speaker, it is my prayer that, from time to time, the leadership of the various Committees will address the House regarding issues within the purviews of their respective Committees. Mr Speaker, the Hon Member talked about the inflation, which stood at over 23 per cent in January and now hovering around 18 per cent. It is refreshing and also to put on record that Fitch Solutions has projected that, in the coming days, inflation is projected to drop further to about 15 per cent.
Mr Speaker, it is also important for us to recognise that, as a result of the prudent management of the economy, all the international rating agencies are now painting positive outlook of the Ghanaian economy. Not long ago, we are where Fitch Ratings upgraded Ghana from restricted default to stable outlook, that is “B-”. I am very confident that in the coming days, Moody’s Rating, S&P, and other agencies will equally be painting a very good picture of the Ghanaian economy.
Mr Speaker, again, we are aware that in the first quarter, the economy saw a 5.3 per cent growth year on of the GDP and this, once again, is an indication of how well this economy is being managed. Again, without belabouring the point already made by Colleague Members, we are aware the performance of the cedi against all the major currencies in the last six months has been very sterling. It is, therefore, important for this House to recognise that these gains were not achieved just on their own, but were achieved as a result of the deliberate, prudent, and fiscal discipline that this Government has undertaken.
On that note, once again, Mr Speaker, I would like to conclude by thanking the maker of the Statement and pray that the leadership of other Committees will emulate same and from time to time, address this House on issues within their areas.
Thank you.
Hon Abdul Kabiru Tiah Mahama
Walewale
Mr Speaker, Hon Eric Afful, the Chairman of the Committee on Development and Economy of Parliament, presented a Statement.
I am quite happy that in his position now, in power and in Government, he now understands the real economics as opposed to the propaganda economy. I am happy and very much so because my respected senior, Hon Jinapor, who was very articulate on the other Side on the economy and energy has, today, found the real understanding of economics as opposed to the propaganda economy, and I will start from there. He now understands the real meaning of inflation. When he was on the other Side, he told us that inflation is this and why is the price of goods increasing? Today, he has made us understand that inflation is not the same as disinflation; that when they say inflation is reducing, it does not necessarily mean prices of goods and services are coming down.
Mr Speaker, since time immemorial, prices of goods and services have never come down because as he rightly mentioned, prices are not sticking downwards, and that is common case law in economics, that prices of goods and services are not expected to be on a downward trend. They are supposed to adjust. This is because when prices of goods and services are decreasing, it means that there is going to be a disincentive for production. No rational producer will want to produce when prices of goods and services are decreasing and that is one thing I am happy that they have understood.
Mr Speaker, I am equally happy that this House has been informed of the transmission mechanism. He talked about time lag, T-1, very elucidate and very good point, but he failed to remind him of the implication of the time lag on the positive figures he mentioned. That is one thing he failed to tell him, that time lag has effect on the positive figures he mentioned. I expected him to have told him that.
Mr Chairman, when I talk of time lag, it means that the policy put in place at a particular time may have effect in one year’s time. Some of them will have effect in six months and others in two years. That was the point he mentioned. Today, he understands time lag, but he has failed to remind him that time lag has an effect on the inflation figure he mentioned, the debt-to-GDP, the gross reserve ratio, the balance of payment, and the current accounts. He failed to tell him, but I will help him.
Mr Speaker, there is one thing we fail to do in this country and in this Chamber, that is when a government puts in policies and those policies are working, we need to commend them. I am one person that would be willing to commend the Government. One of the reasons we are experiencing the appreciation of the cedi is fiscal policy. We admit that it contributes, but we have been reminding this Government that much of the impact is due to the direct intervention of the Bank of Ghana (BoG) in the market, which is antithetical to the free and liberal market we are operating. The direct, unmitigated intervention by the pushing and injection of hard currency into the Ghanaian economy is not economy. Any Minister for Finance or Governor of the Bank of Ghana can do that.
We will allow prices of goods and services in the market and we will allow demand and supply of the currency to determine the price of the Ghanaian cedi, but I have a problem with that intervention, Mr Speaker. The problem with that intervention is that it creates a false sense of the strength of the Ghanaian cedi. When we inject dollars into the Ghanaian economy, it creates a false sense that that will make investors think that the cedi is doing well, but in actual sense, it is not doing well. The IMF has actually come to the country and have mentioned that the Bank of Ghana must stop. This House must encourage the Bank of Ghana to stop the measures of intervening and injecting hard currency into the economy.
Mr Speaker, he mentioned debt-toGDP. What has the Government done? The Government has not paid any loan, except those we have so agreed to pay. Government has actually contracted more loans, but the debt-to-GDP is declining. Why? Because of the painful decision of the Government of Nana Addo Dankwa Akufo-Addo to go for the Debt Restructuring and the IMF Support Programme. Now, they are taking the credit.
Today, they are taking the credit and they are telling us that the debt-to-GDP is 54 per cent, but they forgot to tell the House what has accounted for the reduction in the debt-to-GDP. The Government has not done anything about the debt situation; absolutely nothing. Yet, the debt-to-GDP has moved to 54 per cent. He needed to tell this House that it is decreasing because the Government painfully took the Debt Restructuring Programme, painfully went to the IMF for a Fund Programme and they are gaining this momentum because of the intervention of Nana Addo Dankwa.
We need to mention one thing, the IMF Programme. The IMF Programme has been highlighted as one of the saviours, but come to think of it, inflation has been declining. IMF told us in 2024 that we should end 2025 with inflation at 17 per cent. Even before they came into Government, that was the projection. So, if we find inflation at 18 per cent or 17 per cent, it should tell them that that is what we had already programmed. They are now telling us that when we got the positive gains in 2017/2018, it was because we were under the IMF Support Programme. Today, are we not under the IMF Support Programme and they are talking about their successes?
Mr Speaker, these successes we are having are also supported by the same IMF Programme that they criticised, so until we are out of the Fund Programme— Mr Speaker, in winding up, it must be put on record that the foundation upon which most of the macroeconomic indicators are now going to the north, instead of going to the south is because of a certain difficult austerity measure taken and that the Government that took those decisions should be commended. It must also be placed on record that when the Government does certain good, it must also be supported to continue.
Mr Speaker, in conclusion, we cannot say that we are doing well when statutory payments are not being released. How do we say we are doing well? Contractors are not paid. We are in arrears. Even his Ministry has not even received their funds; he complains in private. The Ministry of Finance is not giving financial clearance to give to people.
So, Mr Speaker, I want to thank the maker of the Statement for this Statement, but to tell them that let us put the records straight and when we are giving such Statements, it should be 360 and not one-sided.
Hon Thomas Worlanyo Tsekpo
Hohoe
Mr Speaker, I will just do three minutes. Mr Speaker, thank you very much for the opportunity and let me commend the Chairman of the Committee on Economy and Development for educating all of us, especially the Minority Thank you very much, Mr Speaker.
Today, I have seen one honest Minority Member, that is the MP for Manso Nkwanta commending Government for doing well—That is what I have seen. One honest Let me again thank the maker of this very important Statement for educating us and allaying the fears of Ghanaians about what some of our Colleagues say and the sand they have been throwing in the eyes of the public.
Mr Speaker, the maker of the Statement made it clear that through the better management of the economy as compared to the previous government, inflation has come down, which is true. It is a fact that we cannot take away from the Minister for Finance, the Governor of the Bank of Ghana, and all the managers of this very economy. Interest rates have come down and it is a fact that the dollar, which was GH₵17.00 is now GH₵10.00 on the market. It is a fact that one cannot take away from this Government.
Mr Speaker, all this was not out of the blue moon because some people had the opportunity six months ago, and they could not do what we are doing today. Mr Speaker, six months Mr Speaker, it is a personal observation I have made and it is the same thing my Colleagues also did, comparing the previous Government and this particular Government. It is not different -What I am saying is not different from what they did. It is not— It is a fact. Mr Speaker, it is a fact that six months ago—What we have done in six months, they could not do it in eight years. It is a fact. Mr Speaker, all this was not out of the blue. It is because of the fiscal discipline. Mr Speaker, now, today, we have 56 Ministers. They had about 120 Ministers.
Mr Speaker, that alone Thank you very much, Mr Speaker. The fact remains the fact that dollar in this country ever went up to the ceiling of GH₵17.00. It is a fact they cannot take away. Mr Speaker, and all these economic successes that we have chalked did not come out of the blue but it is the fiscal discipline — that is why I mentioned, the reduction of the number of Ministers, 120 plus, to 56. Even the four has not been added. All this amounted to the discipline that we have in our economy today.
Mr Speaker, it is surprising, that our Colleagues are saying that all this discipline, all these successes are not reflecting. Mr Speaker, just last week, I was in my Constituency, weedicides that we were buying at a cost of GH₵90.00 six months ago, I bought it for GH₵45.00. This is a reflection — a true reflection of the economy. Mr Speaker, today they are buying petrol and diesel cheaper than they left it. Those who are complaining today, criticising the very economy that we are all enjoying today, are buying diesel, petrol at GH₵11.00, which they cannot deny. Mr Speaker, this same economy is paying back school fees that our students have paid, that is the first year of tertiary education.
Mr Speaker, this same economy that they are criticising, is providing fertilisers to our farmers, — the Feed Ghana Programme, something that they could not do in eight years. Mr Speaker, this same economy is paying allowances that they could not pay to tertiary students — the Economy they handled eight years ago. Mr Speaker, all what we are trying to say is that Hon Ato Forson, the Governor and the managers of the economy have managed this particular economy in six months more than they have done in eight years. They are enjoying; they are benefiting from it. It is something they cannot take away
Hon Kojo Oppong Nkrumah
Ofoase Ayirebi
Mr Speaker, thank you for the opportunity and I want to commend the Chairman of the Committee on the Economy and Development for the Statement he has made, which has introduced, back onto the floor of this House, a number of subjects for us to consider.
In the commentary that has come, Mr Speaker, unfortunately, there has been some distortion that I think that, even as we all elucidate, we should try to correct. First is the subject of the exchange rate. Yes, there has been an appreciation of the Ghana cedi and nobody can say he is unhappy about that, but what is the cause? Among other things, quite recently, the International Monetary Fund (IMF) has quite clearly explained part of what is happening that the Government has dumped about US$1.4 billion from our dollar reserves onto the market. If a country has US$1.4 billion of dollar reserves to dump onto the market to help its currency appreciate, two questions must be asked: the first, where did those reserves come from? And the second, how sustainable is it?
Mr Speaker, it is a matter of fact that, in the six months of this Administration, it has not generated US$1.4 billion in terms of new additions to our gross international reserves. The truth is that, at the point of inheriting power, the previous Administration had left over US$8 billion of international reserves, part of which the new administration has drawn and dumped onto the market. So, as we discuss the performance of the economy, credit should be given where credit is due. The second part of that argument, Mr Speaker, is how sustainable it is. How sustainable is it to continuously be dumping US$1.4 billion onto the Ghanaian market in a six-month period? Do we have that kind of reserves? it, therefore, calls for some more honest and prudent economic planning beyond an attempt to take fiscal plaudits.
Mr Speaker, the next matter I want to speak to is the subject of fiscal discipline. Sometimes, you hear fiscal disciple being bandied about. Fiscal discipline does not mean a failure to meet your fiscal targets. If you programme to raise, for example, a billion and spend US$800 million and leave a balance of US$200 million, you do not fail to raise your billion and just, maybe, raise aboutUS$300 million, spend US$100 million, and say that is fiscal discipline because you have still achieved $US200 million. No, that is not it because there are a lot of public goods and services you have programmed to do with that US$800 million.
Today, Mr Speaker, we were here in this Chamber when the Minister for Finance represented to us that so much money had been sent to the district assemblies and that under the District Assemblies Common Fund, about 80 per cent allocation is going to the assemblies. All of us here in the Chamber know that none of the districts has received that money. So, if the Government has not mobilised and spent that money and it keeps touting fiscal discipline, it will come back to haunt them.
Mr Speaker, currently, the Government has launched the US$1 million Coders programme, agriculture for economic transformation known as Feed Ghana, National Apprenticeship Programme, and a number of other programmes. They even announced recently that they have signed a contract to send over 2,000 Ghanaians to work abroad. We all know that no money has been released for these programmes, so there are no real beneficiaries on the ground.
So, this argument of fiscal discipline that you want to tout as rhetoric, Mr Speaker, we encourage our Colleagues, is not backed by the numbers. Their numbers have not exactly performed, so you have not spent. It is now that moneys are being mobilised to be released to the Ministries, Departments, and Agencies (MDAs), so that cannot be defined as fiscal discipline. The failure to perform on the fiscal programme is not fiscal discipline.
Mr Speaker, finally, conversations border around relief in the economy. Yes, it is true that, as the cedi has appreciated, it has translated into a lower cost of various items that are imported, but we have already discussed the sustainability and the why. But even at the same time, the Government has increased electricity tariffs by 14 per cent earlier and another 2.5 per cent and they are advertising to increase electricity tariffs some more. That is not relief to the Ghanaian consumer.
The Government has increased water tariffs; that is not relief to the Ghanaian consumer. They are beginning to advertise that—And the majority of farmers who are cocoa farmers who benefit from cocoa and were hoping they will get some more based on the promises you have made—They may not be in a position to increase cocoa prices and give them more relief.
So, Mr Speaker, yes, there have been developments on the Ghanaian economy, we expect that the Minister for Finance will appear shortly to provide some more details. But the reasons that are being given should be reasons that align more with the facts and less with the propaganda.
I thank you, Mr Speaker, for the opportunity.
Hon Suhuyini Sayibu Alhassan
Tamale North
Thank you very much, Mr Speaker, for the opportunity to contribute to the Statement ably made by the Committee on Chairman of the Economy and Development. I will not repeat the fact that has been stated by many that, indeed, it was a thorough Statement, well researched with facts.
Mr Speaker, I agree with my colleague, Hon Kojo Oppong Nkrumah, who says we should educate ourselves on the issues that have come up in contributions. Mr Speaker, and part of the education I want to note is that, sometimes, discipline can look like what he claimed as non-performance because it takes discipline to deny oneself of the ability to do. So, if one is not disciplined and they are not able to control their expenditure, then they run the risk of living deficits like those that we have inherited.
Mr Speaker, my Friend spoke about injections in the economy by the Bank of Ghana. The facts are that the IMF have indicated clearly that, in the last quarter of 2024 alone, when their Government was in power, the Bank of Ghana intervened with about US$2 billion.
Mr Speaker, despite that US$2 billion intervention, the cedi was exchanging at about GH₵16.00 to a dollar. That means that one cannot attribute the current good performance of the cedi to just a US$1.4 billion intervention. If that were the case, the cedi would have been doing better when we had about US$2 billion intervention in the last quarter of 2024.
Mr Speaker, he asked of where the intervention or the reserve is coming from. It is coming from a reformed gold sector and that is a policy which is backed by good governance, where we now have the Ghana Gold Board ensuring that, in about just four months, the country is able to raise US$2.7 billion. That is where an intervention can come from, but, again, I want to repeat that that intervention alone is not enough to bring the cedi to GH₵10 as it is trading to the dollar. If that were the case, it would have been better in 2024 when, in the last quarter, the Bank of Ghana intervened by over US$2 billion.
Mr Speaker, the economy is something that we all live. It is simple and it is basic. Only last week, Mr Speaker, I was in my constituency. One branch chairman of mine came to a base where we were seated. He parked his motorbike and decided not to switch the engine off. When one of us called him and said, “Chief, please, turn off your engine”. He said, “Oh, aban papa aba so, fuel has reduced and I do not care’’. Mr Speaker, to wit, that a good Government was in place and fuel prices have gone down, so he does not mind how much he pays for fuel now because it has reduced.
Mr Speaker, so when we speak of inflation, at the risk of contradicting my Colleagues who spoke earlier, it may be the case that, indeed, inflation coming down does not necessarily mean prices coming down. But in our circumstance today, the trending down of inflation, coupled with the improved exchange rate, has obviously led to reduction in prices of commodities on the market. Only a couple of weeks ago, we celebrated Eid in this country. Before the current economic transformation that we are experiencing, we had Eid-ul Fitr in the early part of this year. As we all do, supporting our constituents, after Ramadan, during Eid-ul Fitr, I bought a bag of rice for GH₵620 in Tamale, just to support constituents.
Mr Speaker, ask me how much I bought a bag of rice for only a couple of weeks ago when we had Eid-ul Adha. It was about GH₵400 for the same bag. These are facts. Mr Speaker, yes, inflation trending down may not necessarily mean prices are coming down, but I am saying that we cannot run away from the fact that, today, because it is coupled with the improved exchange rate situation, we even have companies running ya ti so ho promotions across the country. They are telling us in their adverts that they are reducing prices because the cedi is becoming strong. It is on our radio and television stations today. We cannot run away from these facts. Fuel prices have reduced. Fuel that used to be sold at about GH₵14 per litre is now being sold below GH₵12 per litre. Transport fares have reduced. In the food sector, I just gave you an example of rice.
Mr Speaker, I commend the maker of the Statement for stating nothing but facts. I hope that moving forward, the conversations here will guide us to determine the roles each of us have to play to continue to sustain this growth for the benefit of all Ghanaians.
Hon Akwasi Gyamfi Onyina-Acheampong
Kwabre East
Mr Speaker, it is an undeniable fact that the figures have reduced. That on paper, the exchange rate or the cedi has appreciated.
Today, BoG is quoting the cedi to dollar at GH₵10.39 and GH₵10.4. We should ask ourselves that if we go to a bank today to get dollars, at what rate are they going to give to us? If one goes to the bank today to get dollars to do business, would they receive the quantity of dollars they need to do their business? Today, the dollar is in high demand, but if one goes on the ground to look for dollars to trade, they would not get it. Do you know where one can get the dollar? Abotsi has the dollar, but the dollar is going for between GH₵13.00 to GH₵13.3 at the Abotsi centre. How is it that the banks do not have the dollar, but Abotsi has it?
Today, BoG has the rate, but Abotsi has the dollar. What are we doing to ourselves as a country? We cannot continue on this charade and continue to put things on paper, but when it comes to the reality, it is nonexistent. We cannot do that. We need to be honest with ourselves. This facade of putting out a good dollar rate, but in reality, on the ground, it is different, we need to depart from it and do the right things for this country.
Mr Speaker, today, if one wants a dollar, the maximum amount one can get from a bank or forex bureau would be about US$20,000, maximum. I am telling the House that if we go to the bank today, we might not even get US$20,000. Just walk down to the bank— Mr Speaker, US$20,000 is the maximum you will get from a bank. One will not get the maximum that they need to trade, but we are here saying the dollar is at GH₵10.34 and GH₵10.4. We need to be honest with ourselves in this country.
Mr Speaker, again, we know that a few months ago, COCOBOD received about US$1.8 billion. All this money has been injected into the economy and where did this US$1.8 billion come from? The majority of cocoa that is bought is bought within the main crop, which is from October to December and even sometimes, early January, but October to December is where the majority is bought. Last year, who was in power from October to December? The New Patriotic Party (NPP) Government bought majority of the cocoa, kept it and shipped it, which is why the US$1.8 billion came into the economy to boost it. So, when they are giving credit, they should give credit where credit is due.
Today, they are mentioning that the economy is boosting. The four-month import cover that he touted that it is being projected that we will get, how many months of import cover did the previous Government leave? It is also four months, so what are they doing? If they are repeating the four months and clapping for themselves, what are they doing? They are not doing anything, Mr Speaker, Hon Suhuyini mentioned the Gold Board. Previously, when the Gold Board was not there, a pound of gold was sold at around GH₵12,000.
Today, because of the Gold Board, the gold dealers are receiving only GH₵8,000. That is about 33 per cent short of what they were receiving. So, their purchasing power has rather reduced. What is happening here? We are touting ourselves and putting things on paper and we say, we are doing well? Meanwhile, the people are suffering on the ground because they are receiving less money than they used to. We are saying that inflation has gone down. Has it reflected in the pockets of the ordinary Ghanaian? No, Mr Speaker.
Mr Speaker, in conclusion, I am saying that we should be honest with ourselves. My senior Colleague mentioned fiscal discipline. We were here when he said the district assemblies have not received their share of the Common Fund and they said it is not true. Is it the case that they are doing selective justice? Are they paying the district assemblies of the Majority and not paying that of the Minority? If that is the case, they should let us know because I have not received it and my Hon senior Member has not received it. No one on the Minority Side has received their share of the Common Fund, but the Majority Side said they have received theirs. Is it something that they are just saying to while away time and to create the impression that things are going on well?
Mr Speaker, the sweetness of the pudding is in the eating; let them do things right and we will fill it in our pockets.
Thank you, Mr Speaker, for giving me the opportunity
Hon Alexander Kwamena Afenyo-Markin
Effutu
Mr Speaker, let me commend our Colleague who chairs the Committee on Economy and Development, Dr Eric Afful, for bringing this Statement to the fore for all of us to comment upon.
Mr Speaker, this five-page document which he read, I have had the opportunity of going through it, and I must admit that it has taken a great deal of industry to produce this. I would want to commend him and add my voice to earlier speakers who encouraged other Committee leaders to, from time to time, come up with Statements regarding their sector. It is good for us as a House to discuss some of these things from time to time.
Mr Speaker, let me set off, by way of my comments, with a quote from him at the last page of his Statement, the last but one paragraph, and I quote: “Mr Speaker, due to the current performance of the economy, the Switzerland Government has awarded a grant of US$77 million to support the development of a resilient and forwardlooking economy of Ghana. Switzerland has pledged its support to Ghana through economy, trade, governance, democracy, peace and security, environment and climate change, as well as sustainable development”.
Mr Speaker, while the issue of US$77 million grant is a fact, my question is, how did the Swiss Government generate this wealth? Through taxes. Can we do the same so that we do not depend on them for said grants? Because even if it is a grant, it is not for free. You still have to pay. So, Mr Speaker, the world has got to a stage where many countries are now looking at supporting their own citizens rather than engaging in external financial support to countries that may depend on them for budgetary support.
Mr Speaker, it is true that certain statistics are showing some positive signs. My concern is how to sustain these positive data that we are seeing. How do we sustain them? Mr Speaker, one, as a country, we must change our attitude. We have a huge attitudinal deficit. Many of our compatriots, when they benefit from initiatives of governments, they see it as a freebie. In the end, we the politicians play politics with this, and it becomes a burden on the country, and they go scotfree. The time has come, in my very humble view, for us to ensure a national dialogue, to chart a new path, and begin a new conversation that would help change the attitude of the very people who elect us into this Chamber.
Mr Speaker, if, as political leaders, we do not come together to identify the areas of the economy that affect the very foundation of our country, trust me, our democracy may not be there for us to benefit from. The attitude of our own people must change. Mr Speaker, I am not shy to cite some examples of interventions by governments, that have gone waste. Let us go back to former President Rawlings’ Poverty Alleviation Fund; those who benefited, did they pay? Kufuor came, he continued. Kufuor started the Microfinance and Small Loans Centre (MASLOC), Prof Mills continued MASLOC. President Mahama, Chapter 1, continued MASLOC. AkufoAddo continued MASLOC and even introduced the National Entrepreneurship & Innovation Programme (NEIP). How many people benefited and paid? We buy them the tractors and the aboboyas; they take the money, do we pursue? If they do not pay, and because of politics, we also do not pursue because we want them to vote for us again and there is no positive attitude, Mr Speaker, this country will stagnate. It will not go anywhere. Look at the energy sector crisis we are facing. I was privileged to have chaired the Electricity Company of Ghana (ECG)’s board for some few months.
And Mr Speaker, if you see the challenge there, moneys that Government would have to use for development, it is using that same money to pay for electricity that people have enjoyed and are refusing to pay. How many companies are paying ECG bills? Even some of their prepaid metres have expired. People consume power because the metre is not reading. I believe that the political leaders of Ghana today must see this as a real threat to democracy. Because looking at the trend in global politics, nobody is ready to bring us their tax money to develop our country when we can deal with some inefficiencies in our system ourselves.
So, I am saying that if we can sustain the economy with the information we have today, one of the things we should do as a country is to pursue a robust reform. For instance, in the energy sector, particularly, ECG, so that all leakages are addressed. Then people will not push Government to say that the only way is to tax the people. Then that also becomes politics. Is that what we want? Mr Speaker, let us change our attitude on some of these things. Mr Speaker, on the issue of galamsey, until we begin a national dialogue, beginning in this very Chamber, that the NDC and the NPP understand that galamsey is a threat to our very existence, so that we communicate that with one voice to our people, Mr Speaker, we will be pretending to be solving the problem.
Every election cycle, somebody will promise to do this to win votes; soon thereafter, it will come and haunt us. Our Side will not be to obstruct Government; our Side is ready to constructively critique, but also to sit on the table with the Government and look at these national issues. The West African sub-region is melting because they took some of these things for granted. Ghana, perhaps, is the only serious democracy standing, but we have these challenges there.
Mr Speaker, if we do not deal with this galamsey thing — money is getting into the hands of people and people are destroying the environment. In the long run, it is this same economy that it would affect. How do you sustain your economy when some environmental factors are affecting the economy and it is hand-tomouth? Mr Speaker, look at the issue of crop production—food. Reading this Statement, it is talking about some economic gains, but indeed, the poor farmer in Bawku, Hamile, Gyengyase in Effutu and Hohoe, are they getting the needed support?
Mr Speaker, it is when we invest in agriculture that we can sustain an economy. If we are not investing in these areas, but are talking about some six months successes, then, after everything comes to square one, do we go back to the IMF begging? Today, the District Road Improvement Programme (DRIP) machines that are supposed to be here for our roads, some people are using it for galamsey and there is no authority to even reprimand. There is impunity because they come and tell us that they voted for us, so we should allow them to do whatever. No! Mr Speaker, what is the strength or the authority of the Ghanaian politician? I am happy that Government intends to roll out a lot of incentives to support the private sector including this Nkokↄ Nketenkete Project.
However, Mr Speaker, my question is what support systems have we put in place to ensure that these investments when they go, they come? That should be the focus of the discussion if we are talking about the economy. As Ghanaian politicians, we should not allow things to implode, it may be too quicker than we expect. It can just be one morning and the very people that we failed to discuss the challenges with will say you have failed.
Mr Speaker, look at the turn out in the 2024 election, a whole Greater Accra where we do a lot of the political activism had a 55 per cent turn up. It should tell us that the people are beginning to get fed up with us, to say that what are we doing; they can no longer trust us. Look at the Ablekuma North election, we were told that 6000 voters were in the 19 polling stations. If we add the figures that we saw, at least those ones that were officially announced, it was almost like 2000. What it means is that it is just around 35 per cent that decided to come out and vote with all the noise. It tells us that the citizens are losing trust. They do not have confidence in us, and
Mr Speaker, we must wake up. We must limit the politicking, the partisanship, and at least dialogue on critical issues. It is not enough to say that the Government has done so well. I am not here to do any partisan politics—
Mr Speaker, I will conclude with respect. I am not taking this Statement with a partisan eye; I am happy with that courage in bringing it up. But I am asking that if we do not do all the things that I have raised and we do not get a bi partisan support to move our country forward and we continue in the path that we are all seeing with our eyes, how do we sustain the economy and our democracy? I, therefore, would conclude by saying that we should use this Statement by Dr Eric Afful—He says that it is an honorary doctorate, these days that Ghana Tertiary Education Commission (GTEC) is all over the place—I do not want—
Mr Speaker, that day I enquired from him because he is my friend, so I first asked him “Bro is this honorary” and he said “Yes, it is honorary”. Mr Speaker, our respected Colleague, Dr Eric Afful, honorary doctorate, is the Chairman of the Committee on Economy and Development.
Hon George Kweku Ricketts-Hagan
Cape Coast South
Thank you, Mr Speaker. I would add my voice to commend Dr Eric Afful for the Statement he made today.
Mr Speaker, this should be something that all Chairpersons of Committees should emulate in leading some of the discussions we have in the House with the areas that they chair. Mr Speaker, it is a very important and timely. Mr Speaker, something is happening in this country that, maybe, some have not paid attention to. People are wondering why within six months or so of a government things seem to have dramatically improved.
Mr Speaker, you hear people say that this is not going to last or this is just to pull wool over our eyes, without critically looking at what is happening. When we make a Statement—I need to thank my Hon Minority Leader, Osahen AfenyoMarkin, in fact, when one is given a title, one must use it and I am glad he uses his.
Mr Speaker, Ghana has been producing gold for over 100 years, yet we have never been in control of our gold. Different governments have come and gone, but Ghana has never been in control of the gold we produce which is our natural resource. We must commend the current government for coming up with this idea of GOLDBOD. The whole idea is for us to be able to take charge of the gold that we produce, so that it does not end up on the shelves of other countries to bag up their currencies.
Mr Speaker, so we must commend the Government for this Ghana Gold Board (GoldBod) which is raking in money that is going to sustain our currency. I also admit that credit should also be given to the Government that started the Gold Purchasing Programme.
Mr Speaker, the Gold Purchasing Programme, again, was something that was done at the eleventh hour because, in Ghana, we have been producing gold for many years. All the countries that we measure ourselves with, in terms of our currency weight, have their currencies backed by gold. But a Ghana that produces the gold does not back its currency with gold. And how come or how can we then have a currency that is strong and sustainable? So, it is a good idea that we introduced the GoldBod.
But it is also good that the current Government has maintained that policy and intensified it. It is for that simple reason, not a record sign, that the cedi will continue to appreciate and stabilise. We do not actually need intervention anymore going forward. When currency of a country is stable and not fluctuating, it does not need intervention from the central bank. So, its reserve will be kept in the bank and it can always boast off between four and six months of import cover. So, it is not anything that they would say nobody is doing anything.
Somebody is doing something. Because if we do not continue to buy the gold and build a gold reserve, Great Britain, United Kingdom and United States of America and other countries in Europe would build gold reserves. But Ghana that produces the gold does not have any gold reserve. One cannot understand that we have not done that for all these years and we have suffered generation after generation.
It is important that the Government of today has introduced this GoldBod and it is important, though even if it was eleventh hour, for the previous Government to start the gold purchasing, for this Government to intensify it. So, anybody who thinks that our currency will be going back to the old days, then they do not know exactly what is happening in this country. A small tweaking that this country has done is going to keep us safe, strong, and stable and we would not have all the problems that we have had in the past if we do not mess these things up. So, these are the things that we should actually wake up to and see how we can help this Government do this and do it better and for future generations to continue, so that our currency will be strong and we will have the purchasing power.
In Economics, basically, all the indices you have mentioned here and the numbers we are giving are all interlinked. So, if one thing is doing well, all the others naturally, a domino effect, will also do well. So, we need not understand why inflation is doing better. If inflation is doing better, it is simply because the inflation on food is actually going down. Interest rates and all the other things we can talk about.
So, when we make a Statement, as intellectual as this Statement is, with the fact that it has, let us look at the fact and not play politics with some of these things and look at giving credit where credit is due and not to say that this Government is not doing anything. This Government is doing something that this country has never done for 70 years. Let us think about it and that is why we are where we are today.
AskParly