As Ghana works to emerge from the global economic crisis, Vice President Dr. Mahamudu Bawumia claims that the country’s economic chances for private sector investment are once again on track.
Dr. Bawumia pointed out that the administration is steadfastly refocusing on economic growth and making great efforts to return Ghana back on the trajectory it was on and to pre-Covid growth rates.
On Tuesday, June 6, 2023, he mentioned these things while speaking at the 3rd Ghana Investments and Opportunities Summit in London: “we are living in extraordinary times. Over the past two years, inflation has surged. Its rise has been large, sudden, and global. In many parts of the world, it is now at levels unseen for generations.
Meanwhile, financial systems have come under strain. For the first time in recent decades, we have seen high inflation and financial stress emerging in tandem. The world as we are all aware continues to face difficult moments caused by several factors, including climate change, disruptions in the supply chain of manufacturing goods as a result of the pandemic, among others.”
He further elaborated that “these issues as projected by the World Bank are sinking some developed and developing countries into recession. Just when the world was recovering from the ravages of Covid-19 pandemic, which came to shake the foundation of the world’s economy, causing it to a standstill through its devastating effects, resulting in the fall of Global Gross Doestic Product by over 78%, war also broke out between Russia and Ukraine. Its consequence has not only affected the two countries but also extended to other parts of the world, including Ghana.
We have been hit by mainly three major external forces. The Covid-19 pandemic hit our capacity to access fundamental goods, and the response put a burden on public finances. The war between Russia and Ukraine hit fertilizer and grain prices, among others, and increased the prices of commodities back home. And the US Federal Reserve’s move to hike interest rate severely hit our capacity to borrow and repay debt in the international market.”
The investment summit seeks to woo foreign investors to take advantage of opportunities created in the various sectors of the Ghanaian economy in a road up to a total economic recovery.
According to Dr. Bawumia, the government is balancing sound fiscal management with strategic public investments that unlock growth.
“The private sector is the engine of growth, and we are only here to support you. Our government is acting as your facilitator. We will unlock bottlenecks and prioritize limited resources to strategic sectors and projects. We think this is an exciting time to be part of Ghana’s economic growth,” he said in his keynote address.
“We are organizing this Investment and Opportunities Summit exactly in that context. First, we want to show that Ghana is back on track and that strong opportunities exist for profitable private investments in key sectors. ”
“Ghana is home to one of West Africa’s most prominent and efficient ports, Tema, on the eastern serves as a feedstock to the landlocked ECOWAS countries. There is also the Takoradi port on the western coast, which serves the logistics, oil and gas, and allied industries. Takoradi is undergoing a significant transformation and requires significant investment to help decongest Tema and establish a commercial case for more vessels berthing there,” he added.
Dr Bawumia cited the Brownfield, Greenfield, and Public Private Partnerships as tangible and bankable projects championed by the private sector in Ghana and abroad.