Dr. Joseph Obeng, President of GUTA, emphasized the importance of this stability, stating that it would contribute to business growth, youth employment, and overall relief for the citizens.
In an interview with the Ghana News Agency on Wednesday, January 3, Dr Obeng highlighted the role of economic stability in making goods more affordable for consumers, stating, “Once there is economic stability, traders will pass on the gains to consumers by making things in the market affordable.”
He specifically pointed to the 26.4 per cent inflation rate for November 2023, urging not only its maintenance but improvement.
“The 26.4 per cent inflation rate for November 2023 should not only be maintained, but improved, and the stability of the local currency sustained,” Dr Obeng emphasized.
Reflecting on the positive economic conditions in 2023, he expressed the business community's desire to avoid a repeat of the challenges faced in the last quarter of 2022. Dr. Obeng stressed the need for sustained stability, citing the fairly stabilized currency and reduced inflation in 2023.
“We're hoping that the second tranche of the IMF money will also come through to sustain the stability,” remarked Dr Obeng, urging the government to increase efforts to secure the second tranche of US$600 million from the International Monetary Fund (IMF).
To foster a business-friendly environment, Dr. Obeng advocated for tax reforms and mechanisms to reduce the overall cost of doing business in the country. He also proposed retention policies to control profit repatriation by foreign entities in Ghana's key sectors.
“We can keep about 40 per cent in the country as equity so that they don't sell all their money away. When we do this, we would be able to control the depreciation of the Cedi as well as inflation,” Dr Obeng suggested.
Addressing the upcoming General Election, Dr Obeng cautioned the government to exercise fiscal prudence, stating, “Be mindful that 2024 is an election year, therefore, we must control our expenditure. If we're unable to do that, we shall experience a much bigger problem.”