Ghana to present 2022 budget

Ghanaian Finance Minister Ken Ofori-Atta will today present the budget for 2022.

Atta will deliver his announcement prior to the sitting of the parliament and specify the sectors in which the government will allocate funds in 2022. Although Ghana’s economy grew by roughly 4% after contracting significantly over the course of the pandemic, the country’s high budget deficit—which stems from exits of foreign investors—has caused alarm among government officials.

Although much of Ghana’s economy is comprised of small- to medium-sized enterprises in the agricultural and manufacturing sectors, the government will likely refrain from endowing large funds on micro-enterprises. This is largely because such enterprises struggle to stay in business over time.

Expect Accra to prioritize large Ghanaian businesses such as petroleum firms to foster job growth. Such an act would be aimed at lowering the nation’s high unemployment rate over the medium-term. In addition, Accra is prepared to make reforms to liberalize the national economy to boost the confidence of foreign investors. As such, Ghana will likely ease tariffs on commerce, fostering private sector growth. However, this transition will likely not eliminate Accra’s deficit problems propelling it to take out a loan from the IMF during the long-term.

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