Wednesday, 12th February, 2025
Hon Nana Osei-Adjei
New Juaben North
Mr Speaker, I am very grateful for the opportunity given me to make a brief statement on the impact of USAID shutdown on Ghana’s economy.
The United States Agency for International Development (USAID) is primarily responsible for administering civilian foreign aid. Responding to the pledge of former President Barack Obama, in his 2013 State of the Union’s Address, to join with other allies to eradicate extreme poverty in the next two decades, USAID adopted its mission statement to partner to end extreme poverty and promote resilient democratic societies, while advancing the security and prosperity of the United States and beyond. USAID operates in Africa, Asia, Latin America, the Middle East, and Eastern Europe.
Mr Speaker, permit me to list some of the interventions USAID has made over the past years in Ghana in a number of areas such as health, agriculture, education, and governance. In terms of agriculture, through its Feed the Future initiative, USAID has supported smallholder farmers, especially in northern Ghana, where poverty and malnutrition are prevalent. The programme has increased food production, improved market access, and built resilience among farmers. Without this support, many will struggle to sustain their livelihoods.
Beyond agriculture, USAID has been instrumental in strengthening Ghana’s democracy, rights, and governance. It has played a critical role in ensuring free and fair elections, improving local governance, and enhancing accountability in public institutions.
With the Donald Trump Administration sounding war drums on the shutdown of the operations of USAID worldwide, opinions have varied, with some expressing little surprise at the turn of events. The cut in the funding will affect the United States President’s Emergency Plan for AIDS Relief (PEPFAR), which provides vital HIV prevention care and treatment services. A decrease in development assistance could severely disrupt vital initiatives, which are essential in addressing Ghana’s public health challenges.
PEPFAR, which operates largely through USAID, provides antiretroviral treatments to thousands of Ghanaians living with HIV/AIDS. If these funds disappear, countless people could lose access to essential healthcare, reversing years of progress in disease control. USAID has been a lifeline in fighting malaria, improving medical health, and funding life-saving vaccines.
Mr Speaker, again, permit me to say that USAID’s shutdown would likely have a negative impact on Ghana’s economy, potentially leading to decreased investments in critical infrastructure and many more, not to leave out the many NGOs that rely on USAID for support. In view of this, I call on all stakeholders, including us, Members of Parliament, as leaders, to take a critical look at this issue.
Mr Speaker, in Nigeria, in response to this directive from the Government of the U.S., the Nigerian Government, through the Federal Executive Council (FEC), approved US$1.7 billion for healthcare reforms and NG₦4.8 billion for HIV treatment. Like the response of the Nigerian Government, other African nations should seize this moment to look inward and begin the journey toward self-sufficiency in critical sectors.
Mr Speaker, during the commissioning of the National Vaccine Institute in Ghana by His Excellency Nana Addo Dankwa Akufo-Addo, the former President of the Republic of Ghana, on Wednesday, 10th May, 2023, he highlighted his Government’s determination to ensure that Ghana is never again a victim or pawn of the international vaccine order.
The National Vaccine Institute is thus, expected to operationalise Government’s vision of securing the much-needed vaccines through domestic vaccine development and manufacturing in short, medium and long-term phases. The Institute was given some seed money to coordinate and facilitate the capacity of domestic pharmaceutical companies to fill, finish, and package mRNA COVID-19, malaria, and tuberculosis vaccines.
Nana Addo Dankwa Akufo-Addo went on to explain that vaccine nationalism played out by the developed world during the COVID-19 pandemic was a wake-up call for Ghana to take its destiny into its own hands. As if he knew that this would spring up again in the foreseeable future; thanks to the former President for this foresight.
Mr Speaker, while Ghana and Africa still have a long way to go, timely and decisive leadership could set the continent on the right path, reducing years of over-dependence on the US and other foreign donors. It has always been said by renowned scholars and leadership consultants that no country can build a sustainable future by relying solely on foreign aid. Ghana must take proactive steps to secure its progress and reduce its dependence on external support.
One critical step is domestic resource mobilisation.
The Government must strengthen tax collection, close loopholes, and reduce losses to ensure that essential programs such as healthcare, education, and infrastructure are funded from within. Additionally, public-private partnerships (PPPs) must be expanded to encourage businesses to invest in key sectors like healthcare and education to ease the burden on Government’s spending. When the private sector is engaged, development becomes more sustainable. Beyond this, Ghana must diversify its partnership.
Finally, Mr Speaker, while the US has been a key ally, it is essential to engage strategically with other players like the European Union (EU), the African Development Bank (AfDB), and emerging global economies. This will ensure continuous support while reducing dependency on any single donor.
Mr Speaker, I thank you very much for this opportunity. The good people of New Juaben North are grateful.
Hon Richard Acheampong
Bia East
Mr Speaker, thank you very much for the opportunity to comment on the Statements made by our Colleagues.
Mr Speaker, this is more of a research paper, and I think after commenting on it, we need to archive and publish it.
The first one came from the former Minister for Finance. He has done extensive work and has researched into it. If one reads the document, it is very insightful and educative, likewise my Hon Colleague who just finished reading his Statement.
Mr Speaker, on the issues raised by the former Minister for Finance, he has also provided an antidote to deal with the matter which tells us that at least he knows the challenges ahead of us and has provided some information. If we take all of the issues on board, we can address them.
Mr Speaker, I must say that history is repeating itself. COVID-19 exposed our medical system in this country. We said among one another, that we should invest so much in our health facilities, and there was even a mantra, “Ghana beyond aid”. Let us look within, develop our own nation, and our own economy so that there would not be any attractive venture for our youth to travel outside the country to seek for greener pastures. This is because if we read the Statement, he is talking about deportation.
So, if we are able to develop our own nation and our youth would just travel for fun or holidays as tourists, there would be no motivation for someone to stay abroad or to even talk about deportation. But no matter what, there would be one or two found in that instance.
So, what are we doing to ourselves? We talk of import substitution. What are we providing and producing locally? The question is, are we also consuming what they are producing? We behave as if we do not care about what is happening around us. Yesterday, there was The Speaker’s Breakfast Prayer Meeting and he made mention of everyone patronising perfumed rice—
So, I think this sanction or the withdrawal of the USAID support has come at the right time because the Minister for Finance is about presenting his budget to the House. Yesterday, the President issued a Statement calling on the Minister for Finance to provide a funding gap to deal with this situation so this would feed into our budgeting and our plans. So, we need to be disciplined; let us cut the waste like H. E. President John Dramani Mahama said, let us cut unnecessary travels; first class. Business class can be used so that we can make some savings.
Mr Speaker, if we are not disciplined and unable to cut expenditure — because in the Statement, he talked about revenue mobilisation. How do we raise enough revenue and increase expenditure?
Mr Speaker, I would conclude by saying that just few months ago, our Colleagues were attacking us to approve about US$300 million tax exemptions. So, if we raise revenue and on the other hand, give freebies to other people, how do we get enough revenue to deal with such a situation? So, we need to be disciplined; I am talking about fiscal discipline so that at the end of the day, we would have enough revenue in the kitty to deal with such unforeseen shocks and contingencies.
We cannot speak to matters like this and go to sleep. We need to put in place measures to address them.
Thank you very much, Mr Speaker, for the opportunity.
Hon Patrick Yaw Boamah
Okaikwei Central
Thank you, Mr Speaker.
Let me put it on record that nobody travels first class in this Chamber so when one is speaking, one is sending messages out there for them to attack us again. This is because apart from Emirates airline, no aircraft or airline has first class services in Ghana. Hon Acheampong has to be very careful.
Mr Speaker, I would mention five things that would affect some of President Trump’s executive orders and its effect on Ghana and Africa as a whole.
First is the suspension of foreign assistance programme which the President promptly directed the Minister for Finance to look for the funding gap for the US$156 million that the USAID was providing to Ghana. My calculation here is GH₵2.4 billion. Mr Speaker, it is going to be a challenge.
Second is the external revenue service; there is going to be tax calculation distortions that would hit Africa because of remittances and other issues that would come our way.
Third is the withdrawal from the Paris Agreement. Mr Speaker, United States alone contributes 14 per cent of the world’s carbon emission after China and it is an issue that we need to look at critically especially where the Ministry of Energy is now known as the Ministry of Energy and Green Transition while we are seeking to trade in carbon under that programme within the Paris Agreement.
Mr Speaker, fourth, is the withdrawal of the United States support from the World Health Organisation which is going to affect Africa and Ghana. The US contributes US$ 1.24 billion to the World Health Organisation and those programmes are partly funded or has far reaching implications on our health delivery system.
Mr Speaker, last but not least is the energy emergency programme. The USA is now going to explore more oil and gas and that would in effect drive down the prices of oil and gas globally. Ghana is a net exporter of finished petroleum products. We produce only 120,000 barrels of crude oil a day; that is chicken change compared to the over 1.4 million barrels that the Nigerians produce. If the little that we are producing, the USA is going to increase their production levels and it would drive down prices, then we are not going to gain the kind of money or revenue that we are seeking to derive from it. And that would create a funding gap in our Budget. So, we expect to hear some of these interventions from the Minister’s Budget come the end of March.
Mr Speaker, our Colleague spoke about 1D1F programmes and the fact that we need to look into import substitution. It is a call in the right direction. This House did not approve the tax incentives for the 1D1F programme. We were seeking a total of about US$100 million not US$300 million.
My Colleague was a member of the Finance Committee which I chaired and we did not ask for US$300 million. We drove down the prices, took out raw materials and focused on equipment.
All in all, Mr Trump and his administration are telling us something that we must take on board, that we must generate revenues within our borders; grow our local industries; create the jobs that are supposed to be created by the private sector that government cannot absorb; and deal with all the unemployment levels that we see on our streets. We must be creative in our ways and ensure that this country does better than we are seeing today.
Hon Laadi Ayii Ayamba
Pusiga
Mr Speaker, thank you.
Mr Speaker, let me first congratulate the makers of the Statements and I would wish to start with the issue of deportations which is of much interest and very important because we do not know what would happen to our brothers and sisters who would be caught in the USA.
It is most unfortunate, Mr Speaker, that this policy has come to hit. It might not be only Ghana and I know for sure it would not be only Ghana, but we are bothered about our own country. I am so happy to have heard from the Minister for Foreign Affairs and Regional Integration, Mr Samuel Okudzeto Ablakwa, who has come out to say that, from the records in the Ministry, there are 150 persons who are currently supposed to be deported and he has also made it clear that they should report to the various offices where they would get some kind of support to enable them come.
Thank God, Mr Speaker, His Excellency John Dramani Mahama has already spoken about the 24-hour economy. Let us embrace what we have no matter how many we are, no matter how little we have. Most people go out to do menial jobs. If one is in their own country and they decide—or the country comes together, and works towards development and most of the youths are employed, I do not think that anybody would wish to go and be in that cold, running here and there, working and not even—Some of them doing works that they have not even dreamt of.
My prayer is that, they should come home safely. The greatest problem I have is those who might not even hear this. They might not even know and some of them would be in fear, so I want to urge the Minister for Foreign Affairs and Regional Integration to let the message go down well that anybody, even if that person thinks he or she is not part of the 150 persons, that are already registered, the person should report, after all that person is a Ghanaian. We should appreciate our own country and I think that that policy is wake up call to us.
We should not think that when people work somewhere, it is rosy and we are run there to go and benefit. Like someone said somewhere that, if they bring those same category of people from America or other developed countries for instance into Ghana and give them two years, they would change Ghana to be better and to be like those countries which we are running to.
If we are sent there, because we are not ready to work and take up issues by ourselves and ensure that we eat what we grow, wear what we manufacture, appreciate what we have, and that we are ready to live within our means, we would still turn those countries to places that nobody would want and we would still be running back to our own countries where they have taken and made better. Mr Speaker, I am happy that the Minister for Foreign Affairs and Regional Integration, Mr Ablakwa is up and doing.
The issue of USAID, with all the medications and what have you, yes, it would affect us but what have we been thinking? What have we been doing? We need to work harder; we need to appreciate ourselves; let us work together. The Region must be integrated.
African countries must come together and ensure that we are each other’s keeper. If we are each other’s keeper, Mr Speaker, I believe that we should be able to get all the drugs that we think we need.
Also, Mr Speaker, last but not least before I take my seat, let us appreciate our local persons who provide certain medications. Let us make sure we work on them so that they would be able to support us with some locally produced medications which readily help, and I am sure it would go a long way. As for me, I do not blame President Donald Trump for what he has done. He has only woken us from sleep. Let us wake up from the slumber, let us work and let us keep together and Insha Allah, we shall be well.
Thank you, Mr Speaker.
Hon John Ntim Fordjour
Assin South
Thank you, Mr Speaker, for giving me this opportunity.
I rise to comment on the two Statements that are on the floor and to commend the makers of the Statements, the Hon Mohammed Amin Adam, Member of Parliament for Karaga and the Hon Nana Osei-Adjei, Member of Parliament for New Juaben North for bringing to the fore, President Donald Trump’s policy implication on Ghana and the shutdown of USAID and its potential impact on Ghana respectively.
Mr Speaker, since the establishment of USAID by President John F. Kennedy in 1961, the Agency in my view has served its mandate truly and fulfilled their mandate of assisting humanitarian interventions across health education and many sectors particularly agriculture in many countries.
If it has come to a point where a new president deems fit to take the country on a new direction in their national interest, it is important that we in Ghana also reposition the fundamentals of our economic decisions to be resilient to absorb the potential shocks that these decisions would have on us.
Experts have predicted and rightly so, the makers of the Statements have also corroborated.
Millions of Ghanaians that are going to impacted adversely by these decisions by the President of the United States particularly across the sectors of agriculture, education and health. This year alone, as the figures have been indicated, Ghana requested in partnership with USAID’s intervention a total of 137.7 million dollars and out of these 16 million dollars relates to education.
It is important that recognising the critical roles that the partnerships Ghana had underway with USAID relating to sustainable agriculture, supporting farmers to improve their yields in health sector, very important critical programmes on HIV prevention and ensuring that the key diseases are fought and treated and in particular in education, having traverse from transition to English plus to now the Strengthening Accountabilities in Ghana’s Education System (STAGES), the G-to-G agreement.
It is expected that, the first budget of President Mahama in 2025 should be responsive and should be robust enough to be nuance to respond to the shortfalls that stare us in the face, the shortfalls that need to be addressed. We expect that to find expression in the Budget that is to come.
Particularly on health in the year 2015 when the early grade reading assessment indicated that in primary 2 learners across the country, only 2 per cent of them could read at grade level.
It took the intervention of the partnership between Ministry of Education and USAID’s transitions to English plus which was part of their learning activity to ensure that phoenix-based approaches and interventions were deployed across the country in very key schools. Teachers were trained in those phoenix-based approaches, teaching and materials were produced and by those interventions, supporting other interventions of the Ministry and Ghana Education Service (GES), we were able to improve upon reading abilities of our learners and by the year 2023, when the National Satellite Test was conducted, we saw an improvement from 2 per cent of pupils at primary 2 reading in 2015 to 38 per cent and that was a significant improvement. That programme was taunted globally as the best reading programme.
Now we graduated from there and in September my boss here, the former Minister for Education, a Member of Parliament for Bosomtwi, Dr Osei Adutwum, launched in conjunction with USAID the G-to-G level partnership agreement which is Strengthening Accountabilities in Ghana’s Education System (STAGES).
Mr Speaker, in conclusion, all these are very important but it shows that we as a Government at this point without having control over the decisions of other countries particularly very key development partners must take steps to prioritise funding to these critical education interventions to ensure the seamless implementation to augment on the gains to ensure that the decision taken by President Trump do not halt our gains that we have made. Lastly on deportation, the official numbers that have been put by Ministry of Foreign Affairs and Regional Integration stand at 156, potential Ghanaians that face deportation. But, however the numbers, —
It is important that they are assisted with consular services to be deported in dignity, not in chains. They are facing traumatising experiences having been separated from their families with no hope of ever seeing them again. This is the time we would call on the Ministry of Foreign Affairs to ensure that they safely return our people, and I thank you with these few words.
Hon Sebastian Fred Deh
Kpando
Thank you for the opportunity.
Mr Speaker, I can only make a very brief contribution to the Statements that have been made, but I would focus on the one that was ably done and so deeply researched by the former Minister for Finance. I really enjoyed that work, and I actually focused on the areas that he ended his note on where he mentioned that there needs to be some level of deep focus on social interventions, and I heard clearly the mention of education. I want to associate myself deeply with that comment and state that all the interventions that we need to move this country forward and expand our economy are linked to one important ingredient, which I call Technical, Vocational and Skill Training (TVET).
I am happy that my seniors, both Rev Ntim Fordjuor and the former Minister for Education are here, and I believe they would associate themselves with my mention of TVET. I say so because it is a known fact that education is key to development, but the master key to development is TVET, and if this country would expand all that we need to be able to grow this economy, I believe that skills development is critical. All the industries that we need to have a high level of skills to be able to uptake the various technologies that will expand our economy. And if this would develop, this has to do with how we are able to finance our TVET education in Ghana.
Mr Speaker, this is a very good and pragmatic way of improving upon our export development, and that is why the one key policy that has found great expression in the National Democratic Congress (NDC) manifesto, which is being implemented now, is the 24-Hour Economy policy, the export development drive, the improvement in apprenticeship and the modernisation of same. These are critical ingredients that I believe that if we pursue and put some more funding in this, that they do not suffer, this country would improve economically. This country would have the necessary impetus to export and get the necessary foreign exchange that would drive the economy.
Hon Abdul Kabiru Tiah Mahama
Walewale
Thank you, Mr Speaker, and I will also want to join the other Colleagues to thank the maker of the Statement for such a thorough Statement, well researched by the Hon Member for Karaga, ably supported by also the Hon Member for New Juaben North.
Mr Speaker, I would focus on the gap and the implication of that gap on Government fiscals. The maker of the Statement has stated clearly that this decision by the United States government and President Donald Trump to cut 98 per cent of USAID funding to developing countries has come with its own implication. And in Ghana, annually, we are going to have a shortfall of funding of about $150 million.
Mr Speaker, let me put this in context. The Hon Member Okaikwei Central posited that we would have a shortfall of about GH₵2 billion. This is equivalent to falling short of the amount we earn from e-Levy. In other words, the Government would need a revenue handle, like the e-Levy or similar methods, to replace the funding gap. The GH₵2 billion shortfall would have to come on the back of the fact that the Government is already doing away with several revenue handles.
Mr Speaker, many youth programmes, for instance the youth empowerment programme by USAID, are going to be cancelled. The agriculture programme, like the support programme for farmers in the north, is going to be cancelled. Educational programmes, such as the Teaching and Learning Material (TLM), by the United States Government is going to be cancelled. This is the implication of the action by Donald Trump. And this, we must note, is coming to bite the Ghanaian economy. We are going to face the reeling effect of that action.
Mr Speaker, what can be done to ameliorate this situation? The maker of the Statement ably, competently, and brilliantly submitted the proposed solutions. I would go with one of the measures he mentioned: multilateralism. He highlighted the fact that we can still have relations with our development and multilateral partners, such as the African Development Bank and the World Bank. Once we get this relationship ongoing, they can come in to fill in the US$150 million funding gap that is being created due to the United States Government policy decision to stop funding to developing countries. Mr Speaker, last but not least is the Government’s own measures to —
Mr Speaker, safe to say that that was not what I said. The Hon Member did not get the import of my point. And I am assuming he could have sought a clarification to what I stated. For the sake of the record, I stated that, due to President Trump’s decision to stop funding, there are ongoing projects by the USAID which include Teaching and Learning Material support to schools (TLM Plus)—My last check shows that USAID is present in over 48 districts.
Those activities would be cancelled because the funding method by the United State Government would not come. So, they are stopping their funding, they are cancelling these programmes with the Government of Ghana and that is a statement of facts. It is not anticipating anything.
Mr Speaker, so Order 125 is moot. It does not apply in this case. I was concluding. Let me conclude by saying that we would need to look at how we can generate—And I would support any move by Government to the extent that it is consistent with the Government plan and manifesto, to be able to fill in the funding gap. Because the good people of the North benefit greatly from the United States Aid. For instance, the Drought Support Program supports us a lot, especially when we are engaged in farming during the dry season or when we are hard hit by drought.
So, Mr Speaker, I want to thank the maker of this Statement, and to state that Government must have to come with a concrete and cogent action plan to fill in the gap and to support the development of the country. Thank you, Mr Speaker.
Hon George Kweku Ricketts-Hagan
Cape Coast South
Mr Speaker, I would like to add my voice in thanking the former Finance Minister and my brother, the MP for New Juaben North, I believe. I do not think what is happening in the United States should come as any surprise to anyone.
We have always known that Donald Trump is an inward-looking President. Donald Trump is an anti-globalisation President and we just have sat down and done nothing for a very long time, expecting that the result would be the same. The situation we are in now—and I do not even know why we are—The Minister for Finance is here. The donor funding that comes into the budget is very small. It is not much, so I do not know why we are even making—You know, we actually have to find 150 million and I believe that the Finance Minister would find it. That is not the problem.
The problem is the impact that Trump's policies would have on us. Some are primary effect and others are secondary. Mr Patrick Boamah talked about oil production. That would have a primary impact on us, because global prices of oil will go down and therefore, we will not be able to get much revenue from the little oil, 120 barrels a day or that 1,000 barrels a day that we export.
But also, this is a tremendous opportunity for us as a country. Yes, we are not going to—Whatever happens in terms of the tariffs or the Paris Agreement or withdrawal of North Atlantic Treaty Organization (NATO) or whatever Trump chooses to do, it is not going to affect us directly, but it will have a secondary impact on us. The remittance is not going to be much. So far, we have talked about 150 people being brought back home. That is not going to change the numbers in terms of the remittances that we get into that country very much.
But what is actually going to have impact on us has to do with trade. At the moment there is something happening that we need to wake up to. As Ms Laadi said, this is actually a wake-up call for us because a lot of the money that comes into this country, there is 150 million that comes into the budget, and the other ones that goes to various departments and agencies that the Ministry of Finance most of the time do not even know about—That turns out to be what they call the Internally Generated Fund.
A lot of these moneys are actually being misused. They are not used effectively, and some of the people crying as a result of these free moneys, they call it, that come in and get misused.
What we should wake up to now is that because of the tariffs that especially Asian countries and China, are going to be paying, they are beginning to move their productions from China into other countries, especially Africa. A lot of African countries such Rwanda, are benefiting from this. We are here, the headquarters of the African Continental Free Trade Agreement (AfCFTA) is here, and we are doing very little. So, a lot of these companies are basically moving their machines from China and other places to relocate themselves to places where they would pay much lower tariffs.
In Africa, we have various agreements with the United States to be able to send things there on low tariffs. A lot of cotton garment businesses are moving. If one goes to East Africa at the moment, a lot of garment companies are moving from China to relocate to Rwanda and other places because of the low tariffs on things like African Growth and Opportunity Act (AGOA) and things that people are able to send.
These are the things we need to look at and I know you do not like to hear 24- Hour Economy . But the 24-Hour Economy, is going to be a vehicle. If this Government targets some of these companies that are relocating to Africa and encourages them with tax incentives and other incentives, some of them, the raw materials are here, that is why they are relocating.
So, if we can provide the raw materials, we can give them cheap labor, we can provide sufficient energy and efficient energy, and we can do all the things that would enable these companies to set up here, we can industrialise or we will become the serious manufacturing economy that we should be to be able to take advantage.
So we should not just be crying about what is going to happen to us because we would not get US$150 million to waste, or we would not get money going into various departments and agencies, but we should look at the opportunities that this creates.
As I have said, someone gave us a signal that Donald Trump is not a president that looks at things globally, he is an inward-looking President. You keep hearing, “America first, America first”, and now Ghana is crying that Ghana is last. The man had told us already. So Mr Speaker, this is an opportunity for us, as a wake-up call, to look at things differently and inwardly.
As the President said, he has charged the Minister for Finance—
The President said that he had charged the Minister for Finance to fund this gap. The US$150 million or so that we need to fund is not a big deal. The Minister for Finance knows that the donor money that comes into our budget is infinitesimal; it is very small and should not shake anyone up anyone.
It is a wake-up call for us to find ways of building our own economy. Eight years ago, we were told “Ghana Beyond Aid” and today, Ghana still has not gone beyond aid. Those are the things we need to wake up to and try and address them.
Mr Speaker, with these few words, I thank you.
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