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The government has announced a series of policy initiatives aimed at driving economic transformation, boosting job creation and stabilising the economy.
Presenting the 2025 Budget and Economic Policy Statement of the government to Parliament yesterday, the Minister of Finance, Dr Cassiel Ato Forson, outlined key interventions, including the introduction of a 24-Hour Economy, the rollout of the $10 billion “Big Push” infrastructure programme, the establishment of a Ghana Gold Board (GOLDBOD), and the launch of a Ghana Labour Export Programme to formalise labour migration.
Dr Forson, who presented the statement on behalf of the President in line with Article 180 of the 1992 Constitution, the Public Financial Management Act, 2016 (Act 921) and the Standing Order 145 of Parliament, said the 24-Hour Economy policy would allow businesses and institutions to operate around the clock in three shifts to enhance productivity and create well-paying jobs.
He said the full policy would be presented to Parliament in due course for consideration.
Accordingly, Dr Forson said the Labour Act, 2003 (Act 651), the GIPC Act, 2013 (Act 865) and other enabling legislation would be reviewed.
To complement that, the Finance Minister said the government would roll out the $10 billion “Big Push” policy, a strategic infrastructure development programme aimed at expanding the country’s road network, energy infrastructure and industrial zones.
Dr Forson also announced the establishment of the Ghana Gold Board (GOLDBOD) to regulate gold production, refining and gold to boost foreign exchange reserves.
He said the GOLDBOD would stabilise the local currency and macroeconomy through an urgent economic recovery programme to shore up our foreign reserves.
“In addition, it will develop a deliberate policy to build economic buffers through external reserves to cushion the Ghana cedi, implement an Economic Transformation Agenda underpinned by structural reforms anchored on promoting modernised agriculture, agri-business and value addition for import substitution, exports and job creation,” he stated.
The GOLDBOD would also complement monetary policy with fiscal and real sector policies to reduce inflation,” the Minister of Finance stated.
He added that food inflation would be reduced through the Agriculture for Economic Transformation Agenda (AETA) anchored on the 24-Hour Economy policy.
To support the GOLDBOD initiative, he said a $279 million revolving fund had been allocated for the purchasing and export of, at least, three tonnes of gold per week from small-scale miners.
To address the unemployment challenge and reduce illegal migration, the Finance Minister proposed the Ghana Labour Export Programme, which would formalise the export of Ghanaian labour to foreign markets.
There has been a lot of migration of Ghanaian skilled workers to other countries in search of greener pastures.
Barely a year ago, the President of the Ghana Registered Nurses and Midwives Association (GRNMA), Perpetual Ofori-Ampofo, disclosed that about 6,000 nurses had left the country to seek better opportunities since August 2023.
Dr Forson said the Ghana Labour Export initiative would, therefore, seek to create safer and legal pathways for Ghanaian workers abroad while maximising remittances and foreign exchange inflows.
The Finance Minister also proposed an allocation of GH¢1.5 billion to the Agriculture for Economic Transformation Agenda (AETA) to cover programmes such as the Feed Ghana Programme, the Ghana Grains Development Project, and the Vegetable Development Project.
To enhance youth employability, Dr Forson said the government had allocated GH¢300 million to the National Apprenticeship Programme, GH¢100 million to the “Adwumawura” Programme and another GH¢100 million to the National Coders Programme to boost digital skills training.
Furthermore, he said, the District Assemblies Common Fund (DACF), one of the earmarked funds which had been capped under the Earmarked Funds Capping and Realignment Act, 2017 (Act 947), had been allocated GH¢7.51 billion.
Act 947, which was to free up public resources to the discretionary allocation of the Minister of Finance by allowing only 25 per cent of the revenue accruing to earmarked funds to be lodged into them, did not work to perfection as it starved the funds of the needed resources.
The Finance Minister proposed that in accordance with the decentralisation policy objective, a minimum of 80 per cent of the funds should be sent directly to the DACF to spur economic growth.
“Mr Speaker, it is worth noting that, this is in stark contrast with what has happened to the DACF in recent years where less than 50 per cent of the released amount to DACF goes to the district assemblies, with a significant portion spent at the centre,” Dr Forson stated.
Furthermore, he added, for the first time GH¢100 million had been allocated for the payment of monthly allowances to all assembly members, recognising their role in local governance and community development.
When it came to the Women’s Development Bank, a major campaign promise of the National Democratic Congress (NDC), the Finance Minister announced that the government had committed GH¢51.3 million as a seed fund for its establishment to provide targeted financial support for women entrepreneurs.
The government in the 2020 and 2021 budgets proposed the setting up of the Development Bank Ghana and is seeking to sign a memorandum of agreement with multilateral development institutions, including the World Bank, the European Investment Bank (EIB), the African Development Bank (AfDB), and KfW for patient capital for the bank.
In a move to improve road infrastructure, he said, the uncapping of the earmarked funds would affect the Ghana Road Fund and so an allocation of GH¢2.81 billion had been made for road maintenance, representing a 155.5 per cent increase from the 2024 allocation of GH¢1.1 billion.
