Ghana targets 5.8% GDP growth in 2022

Ghana is aiming for a 5.8 percent GDP growth in 2022 and intends to raise 100 billion cedis in its 2022 budget. The Finance Minister, Kenneth Ofori-Attah, revealed that the government plans to spend an estimated 137.5 billion cedis in the upcoming budget. Emmanuel Sibeck, a Chartered Economic Policy Analyst, provided insights on the budget presentation and its key takeaways. Sibeck highlighted the introduction of new taxes, such as the E-tax, which will impose a 1.75 percent charge on bank transfers, mobile money transfers, and more transfers exceeding a hundred cities. These new taxes are expected to increase transaction costs and could potentially lead to a rise in cash transactions, contrary to the government's aim of promoting a cashless economy. In addition to new taxes, the government is exploring avenues to raise funds through property rates and reversing the benchmark value system to generate more revenue. These measures contribute to the government's goal of raising a hundred billion cedis for the budget. Furthermore, the budget includes plans to create one million jobs through the U-Start initiative. While the initiative is not yet operational, it aims to transition individuals from existing programs like NAPCO and provide them with seed capital to start small-scale businesses. The government intends to support job creation by training individuals to effectively run their own businesses. Sibeck emphasized the importance of effective training and resources to ensure the success of individuals in starting and sustaining their businesses. He noted that while the government's focus on job creation is commendable, the execution and support mechanisms for entrepreneurs will be crucial for the initiative's success. Overall, the 2022 budget presents a comprehensive strategy to drive economic growth, raise revenue through innovative taxation measures, and promote job creation in Ghana. As the government navigates the implementation phase, careful monitoring and evaluation will be vital to assess the impact of these policies on the economy and the local population.