Support govt’s effort to stabilise economy - Industry urged
Captains of industry have been urged to respond positively to the government’s effort to stabilise the economy and create a congenial atmosphere for businesses to thrive.
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A Deputy Minister of Finance and Economic Planning, Mrs Mona Helen Quartey, who made the call, also urged the banks to reduce the interest on loans, while businesses paid taxes and avoided evading duties on dutiable goods.
Speaking at the 54th Annual General Meeting Business Luncheon of the Ghana Employers’ Association (GEA) in Accra last Wednesday, Mrs Quartey said the Bank of Ghana (BoG) was committed to bringing down inflation to trigger a downward revision of the policy rate and eventually, the cost of borrowing.
The meeting, which had the theme, “Effective Management of the National Pensions Scheme for Socio-Economic Development”, brought together members of the association to deliberate on and make suggestions on issues of interest to employers.
Pensions
On the issue of pensions, Mrs Quartey said the government was doing all it could to ensure the full implementation of the new pensions scheme.
In connection with this, she said, the National Pensions Regulatory Authority’s intention to transfer funds from the Temporary Pension Fund Accounts (TPFA) at the BoG to employers with Tier-2 Occupational Pension Schemes would soon commerce.
Energy
The deputy minister said Ghana was set to produce its first gas from the Jubilee Fields by the first quarter of 2015.
The gas, she indicated, would be used primarily for power generation, resulting in twin benefits such as cheaper fuel and foreign exchange savings.
“Millions of dollars will be saved, thus increasing the supply of foreign exchange to businesses and providing cheaper energy,” she said.
Economy
In his address, the President of the GEA, Mr Terence R. Darko, observed that the fiscal and monetary policy interventions introduced in the effort to stabilise the economy had rather worsened the business environment and seriously eroded the gains made over the past few years.
He said the continued decline of the cedi against the major foreign currencies, coupled with rising inflation, high cost of capital, among others, had affected major businesses negatively.
He therefore urged the government to ensure that attention was given to the immediate stabilisation of the cedi and reduction of the fiscal deficit in the shortest possible time.
Mr Darko also said the government must the way in patronising made-in-Ghana products and services in order to reduce the pressure on the country’s foreign reserves.
Strikes
Mr Darko said the GEA was increasingly becoming more concerned about the spate of industrial unrests in the country, especially in the public sector.
“Strikes and threats of strikes are becoming rampant and we must all work together to improve the industrial relations climate in the country,” he urged.
Mr Darko also called for the plan to improve access to electricity through the long-awaited gas infrastructure project to be pursued vigorously.