Deputy Minister of Finance, Dr John Kumah, has revealed that the government collected a substantial amount of revenue, totalling GH¢1.19 billion, from the E-levy in the year 2023. This revenue has been strategically allocated to various programs aimed at addressing unemployment in Ghana.
During the media launch of the Wealth and Jobs Expo Ghana, Dr Kumah disclosed that a portion of the E-levy funds has been allocated to initiatives such as the YouStart Programme, the Ghana Enterprise Agency (GEA), and the National Entrepreneurship and Innovation Programme (NEIP). These programs have been designed to tackle the pressing issue of unemployment among Ghanaian youth.
The announcement comes in response to recent data released by the Ghana Statistical Service, which indicated that over a million Ghanaian youth are currently unemployed. In light of this concerning statistic, the government has prioritized the allocation of E-levy funds to support job creation efforts across the country.
Dr. Kumah emphasized the government's commitment to addressing the unemployment crisis, stating, “Last year, E-levy generated GH¢1.19 billion, and as part of dealing with the job situation… the government has committed funds through YouStart from this E-levy sources…to GEA and NEIP to address the unemployment situation in the country.”
Furthermore, Dr. Kumah highlighted the importance of fostering entrepreneurship as a means of combating unemployment. He underscored the government's efforts to attract domestic investments and Foreign Direct Investments (FDIs) to strategic centres in Ghana, with a focus on job creation.
“In the medium term, the government aims to intensify efforts to attract domestic investments and FDIs in strategic centres with emphasis on creating jobs anchored on the government's growth strategy,” Dr Kumah stated. “The strategy is projected to contribute to the creation of approximately 500,000 jobs.”
Dr. Kumah also emphasized the potential impact of entrepreneurship in mitigating unemployment, stating, “We are not saying 1.5 million [unemployed youth], every one of them should create jobs. No. Even if we get 10% of them, it's 150,000 who will become entrepreneurs. If they do an average of let's say 100 jobs….150,000 x 100, you have almost solved the unemployment problem.”
Overall, the government's allocation of E-levy revenue to job creation initiatives underscores its commitment to addressing unemployment and fostering economic growth in Ghana. By investing in programs that support entrepreneurship and innovation, the government aims to provide opportunities for Ghanaian youth to thrive in the workforce and contribute to the country's development.