Chapter 1: Resetting the Economy and Creating Prosperity for All
The National Democratic Congress (NDC) recognizes the urgent need to rescue Ghana’s ailing economy and chart a course toward inclusive and sustainable growth. Chapter One of our manifesto outlines bold and transformative policy initiatives aimed at restoring fiscal discipline, stabilizing key economic indicators, and creating a robust environment for businesses to thrive, ultimately fostering prosperity for every Ghanaian.
Restoring Fiscal Sustainability and Discipline
The foundation of a strong economy lies in prudent fiscal management. To reset Ghana’s economy, the NDC is committed to the following:
Debt Restructuring:
- Implement a transparent and sustainable debt restructuring program to reduce Ghana’s debt-to-GDP ratio to a manageable level.
- Enhance domestic revenue mobilization by eliminating waste, corruption, and revenue leakages.
- Strengthen the Ghana Revenue Authority (GRA) to ensure efficient tax collection without overburdening businesses and individuals.
Balanced Budget Management:
- Commit to fiscal responsibility by keeping the budget deficit within acceptable limits.
- Publish quarterly reports on fiscal performance to promote transparency and accountability.
Efficient Public Spending:
- Prioritize spending on social services and infrastructure projects that directly impact citizens' lives.
- Eliminate unproductive expenditures and redirect funds to high-impact initiatives.
Stabilizing the Cedi and Reducing Inflation
The persistent depreciation of the Ghanaian cedi and skyrocketing inflation have eroded the purchasing power of Ghanaians. To address this, we will:
Enhance Foreign Exchange Reserves:
- Strengthen export-oriented sectors, including agriculture and manufacturing, to boost foreign exchange earnings.
- Develop policies to reduce import dependency and encourage local production of goods and services.
Control Inflation:
- Adopt targeted monetary policies in collaboration with the Bank of Ghana to bring inflation to single digits.
- Reduce excessive taxation and stabilize fuel prices to alleviate inflationary pressures on goods and services.
Boost Investor Confidence:
- Engage with international and local investors to restore confidence in Ghana’s economy by promoting a stable and predictable economic environment.
Lowering Interest Rates and Supporting Businesses
Access to affordable credit is essential for businesses to grow and create jobs. The NDC government will:
Reduce Lending Rates:
- Work with the Bank of Ghana to lower the policy rate, making it cheaper for businesses and individuals to access credit.
- Support banks to improve credit risk assessment and reduce the high cost of borrowing.
Support Small and Medium-Sized Enterprises (SMEs):
- Establish a Small Business Development Fund to provide low-interest loans and grants to SMEs.
- Simplify business registration processes and reduce bureaucratic bottlenecks to encourage entrepreneurship.
Promote Financial Inclusion:
- Expand digital financial services and ensure rural communities have access to banking and credit facilities.
- Strengthen microfinance institutions to support small-scale traders and farmers.
Creating an Enabling Environment for Inclusive Economic Growth
The NDC is committed to building a resilient economy that benefits all Ghanaians, not just a privileged few. To achieve this, we will:
Boost Key Economic Sectors:
- Agriculture: Modernize farming practices, provide subsidies for inputs like fertilizer and seeds, and invest in agro-processing industries to create jobs.
- Industry: Revamp Ghana’s industrial base through targeted investments in manufacturing, energy, and technology.
- Tourism: Develop Ghana’s tourism potential by investing in infrastructure and marketing the country as a global destination.
Create Jobs and Reduce Unemployment:
- Implement the Job Creation and Employment Acceleration Programme, which aims to create over one million jobs in agriculture, ICT, tourism, and construction.
- Expand youth-focused initiatives like apprenticeship programs, start-up incubators, and vocational training centers.
Promote Public-Private Partnerships (PPPs):
- Attract private sector participation in infrastructure development, health care, and education.
- Create a business-friendly regulatory framework to foster innovation and investment.
Regulating Financial Services
The financial sector is the backbone of any thriving economy. To ensure its stability and growth, the NDC will:
Strengthen Financial Institutions:
- Enhance the regulatory framework for capital markets, banking, insurance, and pensions to promote transparency and protect investors.
- Support distressed financial institutions with viable recovery plans to safeguard depositor funds.
Encourage Long-Term Savings and Investments:
- Introduce policies to promote pensions, mutual funds, and long-term investments.
- Offer tax incentives for individuals and businesses that invest in long-term financial instruments.
Protect Consumers:
- Enforce strict consumer protection laws to prevent predatory lending practices and ensure fair treatment of borrowers.
- Increase financial literacy campaigns to empower Ghanaians to make informed decisions about savings, investments, and credit.
Fostering Inclusive Development
Inclusive economic growth is at the heart of the NDC’s vision for Ghana. We will ensure that every Ghanaian, regardless of location or socioeconomic status, benefits from national development. Our policies will:
- Bridge the rural-urban divide by investing in rural infrastructure such as roads, electricity, and water supply.
- Support women-led businesses with targeted financial programs to promote gender equity in entrepreneurship.
- Empower youth with skills training and access to capital to drive innovation and job creation.
Conclusion
The NDC’s blueprint for resetting Ghana’s economy is bold, actionable, and inclusive. By restoring fiscal discipline, stabilizing the cedi, lowering interest rates, and creating an enabling environment for businesses, we will lay the foundation for long-term prosperity. Together, we can rebuild Ghana into a thriving economy that leaves no one behind.
Let us all work together to reset and build the Ghana we want.