Bussiness
Ghana confident of closing balance of payment deficit as NTE increases – Gov’t
The Government says it is confident of closing the balance of payment deficit as Ghana’s Non-Traditional Export (NTE) records a revenue increase of 17 per cent in 2021.
Non-Traditional Export revenue increased from US$2.8 billion in 2020 to US$3.3 billion in 2021, which the Minister said was a sign that the country would gradually close the deficit.
Data provided by the Bank of Ghana and Ministry of Finance showed that the balance of payment deficit (the difference between export and import earnings) stood at US$926.1 million (1.3 per cent of Gross Domestic Product – GDP).
The deficit, which was because the country’s export earnings was far lower than import earnings, had made Ghana invite the International Monetary Fund (IMF) for plan to support its economic recovery.
Mr Kojo Oppong Nkrumah, Minister of Information, at the launch of the analysis of the 2021 NTE statistics in Accra said the growth in the 2021 NTE showed that the country would gradually close the deficit gap.
He noted that the effort to increase particularly NTE had become more important now because of the conversation around Ghana asking the IMF for balance of payment support programme.
Mr Oppong Nkrumah said: “In the end if we’re able to keep up on this trajectory and keep improving non-traditional export then we’ll be in the position where no matter what is happening in the global economy, we’ll still have a dominant export position and not require a lot of help.”
The Minister, therefore, called on the Ghana Export Promotion Authority (GEPA) to double up efforts to enhance total export, balance of trade, and balance of payment.
Mr Herbert Kraper, Deputy Minister of Trade and Industry (MoTI), said that Government programmes like the One District-One Factory (1D1F), domestic retail infrastructure, and SME development were all aimed at increasing export earnings.
He noted that export earnings could have positive impact on the exchange rate, inflation and overall performance of the economy, which was the reason the Ministry was in support of activities of GEPA.
Mr Kraper noted that the Ministry and GEPA could not drive the goal of increasing NTE revenue to USD25.3 billion, as such, there was the need for enhanced institutional collaboration.
“The launch of this report allows us to come to the table again to assess the level of participation and collaboration between agencies and how we further deepen that collaboration,” the Deputy Minister said.
Speaking at the launch of the report, Dr Afua Asabea Asare, Chief Executive Officer (CEO) of GEPA, attributed the growth in NTE to demand for major processed/semi-processed products.
Other things that drove the growth were expansions and optimum running of installed capacities of some major companies, and the export of products by some One District-One Factory (1D1F) companies.
There was also adherence to the protocols of the Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLs), as well as trade facilitation efforts of the Ghana Export Promotion Authority (GEPA) and MoTI.
She lauded Ghanaian exporters for the NTE performance in 2021, nothing that they worked hard to increase NTE export.
She said the Authority would leverage opportunities presented by the African Continental Free Trade Area (AfCFTA) to increase export to other African countries, which was currently low, compared to European Union and Asian countries.
GNA
Ghana’s gold and minerals sector is set for a major spotlight as Meetings. Co, in partnership with key industry stakeholders, announces the Mining & Minerals Convention 2025, scheduled from August 26-27, 2025, at the Kempinski Hotel Gold Coast City, Accra.
Held under the theme “Shaping the Future of Ghana’s Gold Industry,”‘ the Convention will convene government leaders, regulators, miners, refiners, investors, sustainability partners, innovators, and responsible mining, and global competitiveness,policy experts to explore strategies that position Ghana’s gold industry for long-term growth.
The two-day convention will feature presidential and ministerial keynote addresses, industry thought leadership, technical paper presentations, policy dialogues, fireside chats, exhibitions, and high-level networking sessions.
Convention delegates can anticipate a dynamic and insightful experience, marked by thought leadership from leading policymakers and regulators, in-depth discussions on key topics such as sustainability, ESG, digital gold, and responsible sourcing, as well as valuable opportunities to forge public-private partnerships and investment deals.
Moreover, the event will offer practical action points aimed at unlocking greater economic value for Ghana.
The 2025 edition will be supported by a strong coalition of strategic partners, including the Ministry of Lands and Natural Resources, the Minerals Commission, GoldBod, the Minerals Income and Investment Fund (MIIF), and the Ghana Extractive Industries Transparency Initiative (GHEITI).
The Minister for Finance Hon. Cassiel Ato Forson has disclosed that a sum of nine hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due to the DACF.
Furthermore, the Finance Minister informed the House that a total amount of Two Billion, Thirty- Three Million, Four Hundred and Sixty-Nine Thousand, Six Hundred and Seven Ghana Cedis (GHS2,033,469,607) has been disbursed to the National Health Insurance Fund.
While the Ghana Education Trust Fund has also received a total of Two Billion, Seven and Ten Million, Two Hundred and Twenty-Seven Ghana Cedis (GHS2,710,227,947.00) for the months January, February, March and April,2025.
The Finance Minister disclosed this in his statement to Parliament on the payments to statutory funds on the floor of the House.
In addition, he cautioned that the Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.
He added that Members are encouraged to monitor the utilization of these amounts sent to their respective Assemblies in line with the approved guidelines by Cabinet.
In his closing remark, Ato Forson said he’s going to take the concerns of the House seriously.
For his part, the Majority Leader, Mahama Ayariga made known the President’s prioritization of women in the country stating that President Mahama is “Pro-women”.
This is due to the fact that women are going to be the core beneficiaries from the expenditures going to be made by the MMDA’s, he added.
The Minority Leader Alexander Afenyo-Markin questioned the Finance Minister why road contractors have not been paid for more than five months. He said the Minister must not be applauded for since the allocation of these funds were long overdue.
