Did Akufo-Addo answer these questions? – Step-by-step breakdown of President’s speech

Before President Nana Addo Dankwa Akufo-Addo’s address on October 30, 2022, Ghanaians had been plagued with a myriad of challenges with no solutions from the government. Therefore, when it was announced that the President was to address the economy, expectations that he would send a wave of relief to Ghanaians through the solutions the government is adopting were rife. The expectations went even higher when the President noted that he had engaged the various stakeholders in the economy before his address. Key among the issues Ghana is faced with is high inflation, the depreciation of the Ghana cedi, the high cost of fuel, and the country’s inability to generate enough revenue. GhanaWeb Business has since compiled some questions Ghanaians wanted the President to answer: Will taxes on fuel reduce? Taxes on fuel did not feature in the President's address. What happens to Ofori-Atta and the Economic Management Team? President Nana Addo Dankwa Akufo-Addo did not state his decision on the calls for the removal of Ken Ofori-Atta and the Economic Management Team. When will inflation slow down? The President appealed to market women and sellers to desist from adding exorbitant margins to the prices of their commodities. He said: "I hear from the market queens also that another factor fueling the high prices is the high margins that some traders are slapping on goods, for fear of future higher costs. I say to our traders, we are all in this together. Please let us be measured in the margins we seek. I have great respect and admiration for the ingenuity and hard work of our traders, especially those that take on the distribution of foodstuffs around the country, and I would hesitate to join in calling them names. I do make a heartfelt appeal that we all keep an eye out for the greater good, and not try to make the utmost profits out of the current difficulties." How will the country’s debt become sustainable? Ghana’s debt currently stands at GH¢402 billion indicating a 68% debt-to-GDP ratio. Reports have indicated that if the International Monetary Fund discovers that Ghana’s debt levels are unsustainable, the country may risk accessing funds from the IMF. The President in his address said” “To restore and sustain debt sustainability, we plan to reduce our total public debt to GDP ratio to some fifty-five percent (55%) in present value terms by 2028, with the servicing of our external debt pegged at not more than eighteen percent (18%) of our annual revenue also by 2028.” “We are aiming to restore and sustain macroeconomic stability within the next three (3) to six (6) years, with a focus on ensuring debt sustainability to promote durable and inclusive growth while protecting the poor,” he added. How does the country intend to generate more revenue? In recent times the Ghana Revenue Authority embarked on a policy enforcement program to enhance the collection of VAT at various shops and businesses. The president cited this as part of measures being employed by the government. His address was however void of the controversial E-Levy which has failed to meet its set targets after 6 months of its implementation. “We are committed to improving the revenue collection effort, from the current tax-revenue to GDP ratio of thirteen (13%) to between eighteen and twenty percent (18-20%), to be competitive with our peers in the West Africa Region. The GRA is rolling out an extensive set of measures to support this enhanced revenue mobilization. All of us must do our patriotic duty, and support the GRA in this exercise,” he stated. “We have decided to review the reforms in the energy sector, capping of statutory funds, implementation of the exemptions Act, and a new property rate regime. “We have decided also to continue with the policy of a thirty percent (30%) cut in the salaries of political office holders including the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and SOE appointees in 2023, just as we will continue with the thirty percent (30%) cut in discretionary expenditures of Ministries, Departments, and Agencies,” he added. How does the government intend to reduce importation? On imports, the President stated that Ghana must, as a matter of urgent national security, reduce its dependence on imported goods, and enhance its self-reliance, as demanded by our overarching goal of creating a Ghana Beyond Aid “My fellow Ghanaians, the success of our efforts at diversifying the structure of the Ghanaian economy from an import-based one to a value-added exporting one is what will, in the long term, help strengthen our economy. We are making some progress with the 1D1F but our current situation requires that we take some more stringent measures to discourage the importation of goods that we can and do produce here. “To this end, we will review the standards required for imports into the country, prioritize the imports, as well as review the management of our foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles, and others which, with intensified government support and that of the banking sector, can be manufactured and produced in sufficient quantities in Ghana,” he mentioned. He further said the government will, in May 2023, that is six (6) months from now, review the situation. When does the cedi’s depreciation stop? The cedi’s depreciation has been a major contributing factor to the economy’s challenges. Akufo-Addo noted among other things the government’s move to regulate the forex market. He said: “Indeed, some steps have been taken to restore order in the forex markets and we are already beginning to see some calm returning. We will not relent until the order is completely restored. The following actions have been taken thus far: 1) Enhanced supervisory action by the Bank of Ghana in the forex bureau markets and the black market to flush out illegal operators, as well as ensuring that those permitted to operate legally abide by the market rules. Already some forex bureaus have had their licenses revoked, and this exercise will continue until complete order is restored in the sector; 2) Fresh inflows of dollars are providing liquidity to the foreign exchange market, and addressing the pipeline demand; 3) The Bank of Ghana has given its full commitment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilized manner, till the IMF Programme kicks in and the financing assurances expected from other partners also come in; 4) Government is working with the Bank of Ghana and the oil-producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana is, initially, paid to banks domiciled in Ghana to help boost the domestic foreign exchange market; and 5) The Bank of Ghana will enhance its gold purchase program. Safety of investments and speculations of debt restructuring On the security of the investments of Ghanaians the President assured that “individual or institutional investors, including pension funds, in Government treasury bills or instruments, will lose their money, as a result of our ongoing IMF negotiations. There will be no “haircuts”, so I urge all of you to ignore the false rumors, just as, in the banking sector clean-up, Government ensured that the 4.6 million depositors affected by the exercise did not lose their deposits.” How soon Ghana will receive support from the International Monetary Fund? With no exact timelines stated, the President said, “I am able to report to you, my fellow Ghanaians, that the negotiations to secure a strong IMF Programme, which will support the implementation of our Post COVID-19 Programme for Economic Growth and additional funding to support the 2023 Budget and development programme, are at advanced stages, and are going well.” Watch the latest episode of BizTech below: SSD/FNOQ