The Minister for Finance Designate, Dr Mohammed Amin Adams has revealed that, the 2nd Review of the 3-year, US$3bn IMF Supported Post Covid-19 Programme for Economic Growth (PC-PEG) to be conducted by the IMF Staff has been scheduled for 2nd — 12th April 2024, following the successful completion of the 1s! Review of the Programme on 19! Jan 2024.
He stated that, during the 2nd Review, IMF mission will engage the authorities in technical and policy discussions to enable them assess Ghana’s performance on programme objectives, the 6 Quantitative Performance Criteria (QPCs), the 3 Indicative Targets (Its), 1 Monetary Policy Consultation Clause (MPCC), and the Structural Benchmarks (SBs) with respect to end Dec 2023 targets.
The minister noted that, the approval of the 2nd Review by the IMF Executive Board, possibly in June 2024, will trigger the release of the 3¢ tranche of US$360mn, bringing the total disbursements so far under the programme to US$1.56 bilbillion.
Dr Amin Adam stressed that, the Ministry of Finance is working with the BoG in preparation for the IMF 2nd Review Mission. Preliminary assessment undertaken by MoF and BoG shows that we are on course to meeting most of the targets under the Programme.
The Minister was speaking to the media to update Ghanaians on the economy, which is the first of a series of monthly update the instituted at the Ministry of Finance.
Dr Amin Adams added that, on the domestic front, the latest data indicate that the macroeconomic environment continues to remain stable and signs of economic recovery is emerging as the Government implements the IMF-supported PC-PEG as he says, growth is proving to be more resilient and robust than initially programmed.
The Minister designate in his speech said, “Going forward, fast-tracking the implementation of the growth strategy with a key focus on SME development and financing is expected to support accelerated economic expansion in 2024 and the medium-term.”
He revealed that, SMEs in Ghana account for 92% of existing companies, 85% of manufacturing jobs and 70% of GDP.
Therefore, they have a growth potential with possible significant impacts at both macroeconomic and sector levels (technology, creative industries, agro value-chains, construction, tourism, commerce of local goods, transport, healthcare, pharmaceuticals, etc).
His statement also outlined Preliminary consultations with stakeholders unearthed 3 main challenges for SMEs, namely:
i. Access to finance;
ii. Access to markets & exports; and
iii. Tax constraints and formalization.
Dr Amin Adams added that, Government is determined to address, particularly, the financing challenges which has become very critical in SME development. This will ensure that we generate growth internally from SMEs underpinned by a robust SME financing ecosystem that can be leveraged as a vehicle for sustainable growth.
“We are talking to various agencies of state, the private sector such as the financial institutions and we are reviewing our existing SME programmes all aimed at consolidating our efforts at providing opportunities for Ghanaian SMEs”
A comprehensive SME financing strategy is being developed, and once approved, you will see a roll-out of various products to support SMEs.
By:Kofi Kyeremateng
