The Ghanaian Perspective Highlights of the 2020 Mid-Year Budget Review

The COVID-19 Alleviation and Revitalisation of Enterprises Support (CARES) Programme

Our perspective on critical success factors for the Ghana CARES Programme

The following are some factors necessary for the success of the Ghana CARES Programme.

•Improving Access to Financing. Access to finance has been one of the enduring constraints to enterprise growth in Ghana. It is essential that Government coordinates the implementation of the various financing initiatives highlighted under this programme to properly address interdependencies and realise synergies

•Stimulus Accountability Framework: It is important that Government maintains and improves measures which will ensure appropriate and effective stewardship and governance of taxpayer funds without sacrificing speed of the implementation.

•Further Safeguards for Financial Stability. Ghana’s financial system remains relatively stable, satisfactorily capitalized and underpinned by sufficiently effective regulatory frameworks. However, the current  pandemic has created some level of financial turmoil which has demonstrated that it is prudent to ensure that relevant regulatory bodies are equipped with a broad range of flexible tools to safeguard financial stability and to address potential problems in credit markets as they arise. To further strengthen the regulatory framework of financial institutions, the Government should consider policy and legislative reviews which will equip financial sector regulators with greater flexibility to enhance their ability to safeguard financial stability in Ghana.

•Immediate Action to Build Infrastructure. Accelerating and expanding investments in infrastructure remains critical in promoting friendly business environment for investment into the targeted sectors under the Programme. Government has signalled PPPs and concessions as one of the channels being considered to address infrastructure challenges. A robust framework that facilitates transparency in procurement, risk allocation, project implementation and participation of the local financial services industry can enhance the benefits of PPPs and concessions.

•Action to Support Businesses and Communities. Addressing short-term economic challenges facing sectors, regions and communities as a result of the pandemic and helping sectors position themselves for long-term competitiveness is key to the success of the Ghana CARES Programme. Government’s support to businesses under the Programme must be timely, coordinated across sectors  and targeted.

•Action to Help Ghanaians and Stimulate Spending. Targeted tax reliefs, tax savings and incentives (especially for low- and middle-income earners) could be considered to stimulate demand for goods and services.

•Improving Long-Term Growth Prospects. In addition to the short term support to the economy, the Ghana CARES Programme must provide a sound footing to achieve the objectives set out in Government’s economic action plan captured in the Ghana Beyond Aid Agenda. The Programme should be able to create the “Ghana Advantage” – an ideal which conceptualises the competitive advantage of the Ghanaian business environment and growth prospects