Trade Unions and economist have hailed the proposed 24-hour economy for Ghana by former President John Mahama.
They believe it ‘could be the game-changer’ and asked to know a lot more about this ‘great idea’.
The Ex President Mahama during his engagement with Trades Union Congress (TUC) as part of his Building a Better Ghana Tour, last week, proposed the idea of 24-hour economy to help in expanding the economy whiles creating jobs.
“I think, this one, Comrade [referring to Mr Mahama], you have to take your time, because I can imagine the amount of jobs that this kind of thing will create”, Secretary-General of TUC, Yaw Baah, affirmed idea.
“Such an economy “could be the game-changer”, explaining: “…You have an opportunity in this country, to work 24 hours: three shifts. So, if you don’t get a job in the morning, you can get it in the afternoon or in the night”.
“So, where are the young people? Get ready for jobs”, Dr Baah charged.
Consequently, in a statement released last week, a US-based economist, Dr Sa-ad Iddrisu, expressed his enthusiasm for Mahama’s policy, stating that it has the potential to be a game-changer for the Ghanaian economy.
Dr Iddrisu highlighted the advantages of such an economic model, stating, “The concept of a 24-hour economy, common in most developed nations, involves three working shifts and offers many advantages.”
Dr Iddrisu highlighted the advantages of such an economic model, stating, “The concept of a 24-hour economy, common in most developed nations, involves three working shifts and offers many advantages.”
He explained that extending business operating hours beyond the conventional 8 am to 5 pm would substantially reduce Ghana’s high unemployment levels.
The need for additional shifts would create job opportunities and offer workers flexible working hours, promoting a sustainable and productive workforce, the statement said.
Dr Iddrisu noted that implementing a 24-hour economy would require enhanced security measures, leading to a reduction in urban crime rates and generating additional employment opportunities within the security forces, particularly benefiting the youth.
He emphasised that a 24-hour economy would drive improvements in essential services like electricity and water supply, which are vital for the economy’s uninterrupted functioning.
“Addressing these services would significantly benefit citizens, as consistent power and water supply are essential for sustaining a 24-hour economy,” he added.
Dr Iddrisu also highlighted the potential for nightlife tourism as a significant benefit of a 24-hour economy.
“Major cities like Accra, Kumasi, Tamale, Takoradi, and Ho could stimulate nightlife tourism, attracting youth and travelers seeking unique experiences and generating additional revenue for local businesses and the overall economy,” he projected.
Among other advantages, he mentioned traffic reduction and increased foreign competitiveness, stating that a 24-hour economy has the potential to alleviate traffic congestion during peak hours and enable Ghanaian youth to compete globally without relocating.
Information technology companies, for instance, could cater to foreign clients around the clock, leading to increased revenue and employment opportunities, he stated.
While acknowledging the numerous benefits of a 24-hour economy, Dr Iddrisu also cautioned about potential challenges, such as an increase in night crimes.
He stressed the importance of vigilant support and engagement from citizens, community leaders, religious figures, and chiefs, as well as careful consideration when identifying sectors within the Ghanaian economy suitable for 24-hour operation.
This balanced approach would avoid overwhelming specific industries.
Ghana’s Parliament awaits the presentation of the 2024 fiscal budget and economic policies of government on November 15, 2023.
The Speaker of Parliament, Alban Sumana Kingsford Bagbin, announced the date during a parliamentary session, last week.
The Minister of Finance has already indicated that, the government intends introducing some strategies in the 2024 budget to propel job creation.
“As part of the 2024 budget, the government will also roll out a strategy to complement the micro-fiscal reforms we are implementing under the IMF programmes”, Ken Ofori-Atta said at the Ghana Mutual Prosperity dialogue held inAccra, last week.
“This is to ensure the growth of jobs and critical components of the economy,” he added.
Apparently, key stakeholders of the economy have called for review of many tax policies to facilitate government’s aim of creating more jobs while expanding the economy.
To this, the Ghana Federation of Labour (GFL) has said the government must urgently review nuisance taxes, particularly excise duties on the beverage industry.
A statement from the federation signed by Secretary-General Abraham Koomson, said this has to be announced in the 2024 budget.
It said: “These burdensome taxes have hindered economic growth, stifled business development, and placed an unfair burden on hardworking Ghanaians and effective operation of industries”.
“It is imperative that the government takes immediate action to alleviate these challenges and foster a more conducive environment for businesses and workers”, the federation stressed.
It noted: “The GFL firmly believes that the review of nuisance taxes and excise duties stated above is an urgent necessity”.
“These taxes, often excessive and unnecessary, have impeded the growth and competitiveness of local businesses, stifling Innovation, investment, and job creation”.
“The burden they impose on businesses is detrimental to their sustainability and ability to contribute to the economic development of Ghana. It is time for the government to acknowledge the adverse effects of these taxes and take decisive action to address them.”
Also, the Ghana Union of Traders Association (GUTA), is calling for the withdrawal of both the COVID-19 Levy and the Special Import Levy in the yet to be read 2024 budget.
Specifically, GUTA wants the removal of the 1% COVID-19 Levy, the 2% Special Import Levy, and addressing the complex nature of Value Added Tax (VAT). The COVID-19 Health Recovery Levy was introduced in 2021 as a standalone tax applied to the gross value of taxable goods and services provided under the Standard Rate and VAT Flat Rate Schemes.
“Reducing the cost of doing business would lead to increased productivity and better revenue collection for the government’, Dr Joseph Obeng, the President of GUTA justified their demand.
Also, the Food and Beverage Association of Ghana has outcried that, the business sector is currently riddled with too many taxes, levies, duties and indeed an overtaxed economy, thereby stifling growth.
Members of the Association believe that the government stands to rake in more revenue for development if taxes are reduced and some are cancelled.
John Awuni, the executive chairman of the association at a press conference said “We strongly advocate for major tax cuts and the cancellation of some taxes in the 2024 fiscal year. This will spur the gains the economy has started making to sustainable levels”.
Currently, he said the “prices of goods and services are very high consequently reducing the demand for these goods and services. Considering the level of low wages and salaries in the country, the government can trigger higher demand for goods and services in the private sector if taxes are reviewed downwards.”
For its immense role it plays in the financial sector of the economy, the Ghana Co-operative Credit Unions Association wants the government to exempt them from paying taxes to protect the investments unions.
Board Chairman of GCUA, Dr Bernard Bingab, explains that all African countries exempt co-operatives from tax. However, in recent years the Ghana Revenue Authority has clamped down on credit unions asking some to pay as high as one million cedis.
“This is a group that is there to help the country. Monies that we take as credit unions get back to the pool, so, we have difficulty as to why other African countries have exempted co-operatives and yet the credit unions are being asked to pay tax”, Dr Bingab said during the 55th-anniversary of the Ghana Co-operative Credit Unions Association at Koforidua in the Eastern region, last week.
“One of my biggest appeals to our government is tax exemptions for co-operatives”.
Notably, another key player or contributors to the Ghanaian economy is the hospitality industry. This, the Ghana Hotels Association (GHA) has also bemoaned the recent hikes in utility tariffs, taxes, and levies, saying “they are incredibly crippling the hospitality industry.”
The industry already suffered tremendous losses from the COVID-19 pandemic, and instead of helping to rebound faster, the Government had slapped it with hefty taxes, particularly property rates, which had deepened its woes, the Association said.
According to players, one of their major headaches is the property rate regime currently being implemented by the Ghana Revenue Authority, which they describe as a “killer to the sector’s rebound.”
“How could a facility that pays a property rate of GH¢700 suddenly rise to GH¢20,000 or from GH¢1,800 to GH¢50,000? We are not against the increase and the collection by GRA, but we are against the astronomical increases killing our businesses,” Isaac Nkoom, the immediate past Central Regional Chairman of the GHA said in an interview reacting to the current state of the industry.
“We do not know how they arrived at those sharp increases and, as far as we remain stakeholders, we expected some consultations on operational modalities before implementation.”
“This must certainly change for our mutual gain. The entire arrangement appears we are being punished for owning businesses because the rates do not reflect the reality of our business.”
The challenges had also been exacerbated by 20 multiple and duplicate taxes and levies, which were “suffocating the growth of the sector.”
“These include the NHIL, VAT, GETfund, COVID-19 levy, GTA levy, EPA Levy, FDA levy, MMDAs levy, Fire Service levy, and one percent tourism levy.”
“Others are SSNIT for staff, data protection levy, property rates, suitability report levy, and GHAMRO levy, all of which contribute to the pricing mechanisms.”
Mr Nkoom expressed regret over the burden those taxes put on industry operators and said the GHA had no option but to honour all tax obligations, in addition to the cost of maintenance, utilities, and the payment of salaries.
He urged the Government to consider the reduction in VAT charges as the hotel business was gradually grinding to a halt due to very low patronage, because of the economic hardship.
Apparently, the Finance Ministry is scheduled to present the 2024 budget to Parliament in November.
In the lead-up to the presentation, Finance Minister Ken Ofori-Atta has engaged with various interest groups, including GUTA.
Minister Ofori-Atta acknowledged the concerns raised by these groups, particularly regarding the high tax rates in the country.
He assured that their concerns would be taken into consideration before the budget presentation.
Meanwhile, Speaker Bagbin emphasised the importance of scrutinising the budget to ensure it meets the needs of all Ghanaians. He called for a consultative and consensus-building approach during the process, highlighting the Parliament’s demonstrated capacity and experience in budget approval deliberations.
The Speaker also stressed the urgency of passing the budget bill, as it would enable Parliament to engage additional technical personnel, aligning the institution with the imperatives of recent legislations passed by the house.
Ghana’s economy is likely to end 2023 with a public debt to GDP ratio of 99 percent, Fitch Solutions has said. The projected public debt figure is an increase from the previous 88% recorded in 2022.
The primary driver for this projected rise is the depreciation of the cedi against the US dollar, with the local currency having already lost about 11.80% in value to the dollar on the retail market and 22% on the interbank market.
Ghana faces stive debt accumulation matrix. But Fitch is projecting that the public debt could decline by 4 percent of GDP at the end of 2024 to 95% of GDP and further to 94% in 2025 at the back of continues fiscal consolidation and stabilisation of the cedi.
Meanwhile, the International Monetary Fund (IMF) had previously projected a decline in Ghana’s debt-to-GDP ratio for 2023 to 84.9% from 92.4% in 2022.
The October 2023 Fiscal Monitor indicated an expected consistent decline in the country’s total debt-to-GDP ratio over the next five years.
Ghana has faced challenges in its public finances last year, leading to restricted access to Eurobond markets and a significant decline in external liquidity.
This resulted in credit downgrades, including a downgrade to ‘CCC’ by Fitch and subsequent placement on restricted default (‘RD’) in early 2023.
Despite the downgrades, Fitch notes that foreign-currency debt constitutes less than 40% of Ghana’s total public debt, well below the ‘B’ median.
The agency acknowledges Ghana’s stronger levels of governance compared to the ‘B’ median and its democratic record with peaceful transitions of power since 1992.
However, Fitch expresses concerns about the country’s weaknesses, including a low international liquidity position, low per-capita income and human development indicators, and a heavy reliance on exports of oil, gold, and cocoa, exposing it to commodity price volatility.
Major players within the Ghanaian economy are calling for several tax reforms to help keep the private sector active to contribute progressively to the economic expansion and job creation.
Among the players is the Ghana Union of Traders Association (GUTA), which is calling for the withdrawal of both the COVID-19 Levy and the Special Import Levy in the yet to be read 2024 budget.
Specifically, GUTA wants the removal of the 1% COVID-19 Levy, the 2% Special Import Levy, and addressing the complex nature of Value Added Tax (VAT). The COVID-19 Health Recovery Levy was introduced in 2021 as a standalone tax applied to the gross value of taxable goods and services provided under the Standard Rate and VAT Flat Rate Schemes.
“Reducing the cost of doing business would lead to increased productivity and better revenue collection for the government’, Dr Joseph Obeng, the President of GUTA justified their demand.
Also, the Food and Beverage Association of Ghana has out-cried that, the business sector is currently riddled with too many taxes, levies, duties and indeed an overtaxed economy, thereby stifling growth.
Members of the Association believe that the government stands to rake in more revenue for development if taxes are reduced and some are cancelled.
John Awuni, the executive chairman of the association at a press conference said “We strongly advocate for major tax cuts and the cancellation of some taxes in the 2024 fiscal year. This will spur the gains the economy has started making to sustainable levels”.
Currently, he said the “prices of goods and services are very high consequently reducing the demand for these goods and services. Considering the level of low wages and salaries in the country, the government can trigger higher demand for goods and services in the private sector if taxes are reviewed downwards.”
For its immense role it plays in the financial sector of the economy, the Ghana Co-operative Credit Unions Association wants the government to exempt them from paying taxes to protect the investments unions.
Board Chairman of GCUA, Dr Bernard Bingab, explains that all African countries exempt co-operatives from tax. However, in recent years the Ghana Revenue Authority has clamped down on credit unions asking some to pay as high as one million cedis.
“This is a group that is there to help the country. Monies that we take as credit unions get back to the pool, so, we have difficulty as to why other African countries have exempted co-operatives and yet the credit unions are being asked to pay tax”, Dr Bingab said during the 55th-anniversary of the Ghana Co-operative Credit Unions Association at Koforidua in the Eastern region, last week.
“One of my biggest appeals to our government is tax exemptions for co-operatives”.
Notably, another key player or contributors to the Ghanaian economy is the hospitality industry. This, the Ghana Hotels Association (GHA) has also bemoaned the recent hikes in utility tariffs, taxes, and levies, saying “they are incredibly crippling the hospitality industry.”
The industry already suffered tremendous losses from the COVID-19 pandemic, and instead of helping to rebound faster, the Government had slapped it with hefty taxes, particularly property rates, which had deepened its woes, the Association said.
According to players, one of their major headaches is the property rate regime currently being implemented by the Ghana Revenue Authority, which they describe as a “killer to the sector’s rebound.”
“How could a facility that pays a property rate of GH¢700 suddenly rise to GH¢20,000 or from GH¢1,800 to GH¢50,000? We are not against the increase and the collection by GRA, but we are against the astronomical increases killing our businesses,” Isaac Nkoom, the immediate past Central Regional Chairman of the GHA said in an interview reacting to the current state of the industry.
“We do not know how they arrived at those sharp increases and, as far as we remain stakeholders, we expected some consultations on operational modalities before implementation.”
“This must certainly change for our mutual gain. The entire arrangement appears we are being punished for owning businesses because the rates do not reflect the reality of our business.”
The challenges had also been exacerbated by 20 multiple and duplicate taxes and levies, which were “suffocating the growth of the sector.”
“These include the NHIL, VAT, GETfund, COVID-19 levy, GTA levy, EPA Levy, FDA levy, MMDAs levy, Fire Service levy, and one percent tourism levy.”
“Others are SSNIT for staff, data protection levy, property rates, suitability report levy, and GHAMRO levy, all of which contribute to the pricing mechanisms.”
Mr Nkoom expressed regret over the burden those taxes put on industry operators and said the GHA had no option but to honour all tax obligations, in addition to the cost of maintenance, utilities, and the payment of salaries.
He urged the Government to consider the reduction in VAT charges as the hotel business was gradually grinding to a halt due to very low patronage, because of the economic hardship.
Apparently, the Finance Ministry is scheduled to present the 2024 budget to Parliament in November.
In the lead-up to the presentation, Finance Minister Ken Ofori-Atta has engaged with various interest groups, including GUTA.
Minister Ofori-Atta acknowledged the concerns raised by these groups, particularly regarding the high tax rates in the country.
He assured that their concerns would be taken into consideration before the budget presentation.
Namibian President, Hage G. Geingob, eulogize the passing away of Finland President H.E. Martti Ahtisaari.
He described him as a ‘friend of the Namibian liberation struggle’.
Marti Ahtisaari passed away on October 16, 2023.
Below is the full statement published by the Namibian President:
“I have learned with utmost sadness about the passing of the former President of Finland, H.E. Martti Ahtisaari, a friend of the Namibian liberation struggle and a leading peacemaker who played through the United Nations a pivotal role in midwifing the birth of a new Namibia.
The history of Martti Athissari is incomplete without Namibia, a country he was associated with in the many roles that he occupied.
First through his appointment as a senator to the Council of the United Nations Institute for Namibia (UNIN) in 1975, a position which later led to his appointment in 1978 by United Nations Secretary General Kurt Waldheim as the Special Representative of the Secretary General for Namibia.
In 1989, he was appointed by the United Nations Secretary General to assume the difficult task as the leader of the United Nations Transition Assistance Group (UNTAG) in Namibia, which was globally hailed as a model in dealing with complex transitions from conflict to peace.
Major parts in the history of Namibia would be incomplete without the name of former President Ahtisaari. As a Fin, former President Ahtisaari understood fully our quest for freedom and justice. Therefore, in the roles of diplomat, negotiator, peacekeeper and blue helmet, former President Ahtisaari served the Namibian people who were seeking self-determination and justice with flying colors. As an icon in the imagination of the Namibian people, President Ahtisaari was inscribed as an honorary citizen of the Republic of Namibia, with streets and schools having been named after him in remembrance and in celebration of his exceptional deeds in the birth of a free Namibia.
Therefore, today, we are not only mourning the loss of former President Ahtisaari, a friend and one of us, but we are also reaffirming the rich legacy of peace and the outstanding international public service of a Nobel peace laureate with an indelible association with Namibia.
On behalf of the people and the Government of the Republic of Namibia, I wish to extend sincere condolences to the Ahtisaari family and our sister country, Finland.
Coalition of Muslim Organisations, Ghana(COMOG) has express resentment against the precarious attacks on the people of Palestine by Israeli.
The Group says current happening at Gaza must be of grave concern to the international community being represented at the UN.
COMOG also expressed its disappointment at Ghana’s abstention from the voting on the proposed Russian resolution on Gaza at the UN Security Council on Monday, October 16, 2023.
It says, Ghana’s position as issued by the Foreign Ministry coupled with its abstention at the UN Security Council voting is totally at variance with its Foreign Policy.
What can be more reasonable in such a crucial act of dehumanizatio than calling for a ceasefire, the release of hostages (on both sides), access to humanitarian aid and safe evacuation of civilians in Gaza.
“We wish to announce to the general public of an impending picketing in Accra and at various regional capitals on Friday 27th October 2023. We therefore call on all peace loving Ghanaians who share in the plight of the Palestinian people to join us in drumming home our demand for a UN intervention to stop the murders in Palestine”, the Group said in a statement issued on Wednesday, October 18th, 2023.
Below is the statement:
FOR IMMEDIATE RELEASE
19th October, 2023
COMOG CALLS FOR AN INTERNATIONAL SANCTION ON ISRAEL, CONDEMNS GHANA’S ABSTENTION AT THE UN SECURITY COUNCIL VOTING AND CALLS FOR AN IMMEDIATE CESSATION OF DIPLOMATIC RELATIONS WITH ISRAEL
We the Coalition of Muslim Organisations, Ghana(COMOG) write to express our resentment against the precarious attacks on the people of Palestine by Israeli. This must be of grave concern to the international community being represented at the UN.
COMOG is also calling for an Emergency General Assembly Session to be convened immediately to consider taking the appropriate action. It is sad that, “…the world is watching an unprecedented human catastrophe in Gaza” as Antonio Guterres, the UN Secretary General put it a few days ago.
As an umbrellah organization which treasures peace and security of humanity across the world, with absolute repulsion against the positions of the USA, UK, Germany, France, etc. of the EU, we wish to add our voices to the many other voices calling on the United Nations to take steps to end the senseless destruction of life and property which is being perpetrated on the innocent and defenseless people of Palestine.
The carnage in Gaza at this time requires responsible and credible leadership from the USA and her EU allies, and sober invocation of UN mechanisms to resolve this over 75-year Palestine-Israel conflict, instead of the USA and her EU allies one-sided solid-rock and unwavering support for Israel, which is rather the aggressor, occupying and oppressing a sovereign state of Palestine.
Where is the voice and condemnation of the USA and EU allies when over 250 Palestinians have been killed this year before the current escalations, and the Al-Aqsa Mosque, also desecrated by Israel! Where is the moral integrity of the USA and her EU allies in upholding the UN charter that was entered after the WWII to ensure that the world sees peace and justice, ever after! How can Palestinians who are the OPPRESSED not have the right to defend themselves, but Israel the OPPRESSOR rather has the right to defend itself, and that no country or countries, person or persons have the right to go to the aid of the Palestinians who are being oppressed and killed!
In such a volatile sub-region, overwhelmed by the activities of terrorists and extremists, it is certainly not advisable for any one country, like the USA and the EU allies, to show open support for the carnage being perpetrated by Israel and not talk about the rights of Palestinians for self-determination, especially when the terrorists across Africa operate in tandem with the Freedom Fighters of the Middle East and Sahel region, Palestine not an exception.
COMOG wishes to express its disappointment at Ghana’s abstention from the voting on the proposed Russian resolution on Gaza at the UN Security Council on Monday, October 16, 2023.
Ghana’s position as issued by the Foreign Ministry coupled with its abstention at the UN Security Council voting is totally at variance with its Foreign Policy.
What can be more reasonable in such a crucial act of dehumanizatio than calling for a ceasefire, the release of hostages (on both sides), access to humanitarian aid and safe evacuation of civilians in Gaza.
In conclusion, we wish to announce to the general public of an impending picketing in Accra and at various regional capitals on Friday 27th October 2023. We therefore call on all peace loving Ghanaians who share in the plight of the Palestinian people to join us in drumming home our demand for a UN intervention to stop the murders in Palestine.
We finally wish to extend our condolences to the bereaved families, while we offer our solidarity and prayers to the people of Palestine. Long live the State of Palestine! Long live the people of Palestine!
Ghana’s fiscal deficit-to-Gross Domestic Product (GDP) ratio is estimated to record 4.6 percent as against 11.2 percent in 2022, International Monetary Fund has predicted.
This 2023 estimated ratio is an improvement of about 6.6% of the 2022 figure.
A further reduction in the ratio is expected in the next five year. This follows a significant cut in government expenditure and expected improvement in revenue as announced in the 2023 budget review. The fiscal deficit-to-GDP recorded in 2020 and 2021, were pegged at 17.4% and 12.0% respectively.
“It is expected to fall to 4.1% of GDP in 2024 and subsequently to 3.5% of GDP in 2025 and 3.0% of GDP in 2026. It will again decline to 2.6% of GDP in 2027and 2.8% of GDP in 2028”, the October 2023 Fiscal Monitor noted.
“These figures indicate that the government has adopted a tight budget spending in 2023 as captured by the IMF Programme which stresses more on revenue mobilisation.
“This is also a reflection of the country’s second quarter growth rate where some sub-sectors such as Construction (-11.7%) that rely heavily on government spending contracted.”
Similarly, the primary balance will fall to 0.5% of GDP, from a deficit of 3.7% in 2022.
However, in the next five years, the primary balance will record a surplus.
This is a result of an anticipated strong revenue growth and reduced expenditure in 2023.
Meanwhile, the Fund has revealed that, the 1.2% Gross Domestic Product (GDP) growth forecast for Ghana in 2023 captured in the World Economic Outlook (WEO) was based on old data.
According to the Resident Representative to Ghana, Dr. Leandro Medina, the Fund would revise the growth rate projection when it receives new data.
The Resident Representative said the Fund did not take into account the recent data released by the Ghana Statistical Service.
“In particular, it did not take into account the recent data that showed a higher growth rate than expected at the beginning of the programme (averaging 3.2% for the first two quarters).”
Dr. Madina argued that “ At the current juncture, and based on the findings of the first ECF [Economic Credit Facility] review, the IMF Staff assessment indicated that the growth projection for 2023 will be revised up from the previous 1.5%”.
The IMF lowered Ghana’s growth rate to 1.2%, from the July 2023 forecast of 1.6%.
It was the second time the Fund has revised Ghana’s GDP growth for this year.
In April 2023, the Fund predicted a 2.8% growth rate for Ghana in its World Economic Outlook (WEO) Report.
The World Bank had also slightly lowered the country’s growth rate forecast for this year to 1.5%, according to its October 2023 Africa Pulse Report.
Government of Ghana’s financing of healthcare from consolidated revenues contributed 67.5 percent to the Ministry of Health budget in 2022, according to the ministry’s data.
The funds for the health system come from non-tax revenues, taxes, donor contributions, and out-of-pocket payments by individuals and households.
Consequently, external assistance for health as a share of total health spending between 2015 and 2019 has decreased from 25% to 11%.
Meanwhile, an international investment firm and rating agency, Fitch Solutions, has projected an increased in government of Ghana spending by about $1.3 billion in 2024.
According to the UK firm, Ghana’s health budget is expected to expand to ¢16.5 billion in 2024, from ¢15.2 billion in 2023. However, the country’s poor fiscal space outlook in addition to factors such as fiscal capacity deficits, debt and relatively low prioritization of health does not create a bright picture for sustained financing for primary health care. All these notwithstanding, the Universal Health Coverage (UHC) roadmap aims at mobilizing the equivalent of at least US$7 billion over 10 years in non-wage-resources including GDP allocation for healthcare delivery, especially primary health care.
Healthcare system
This requires significant policy measures to facilitate a transition process from previously supported donor interventions to sustainable domestic public financing of interventions.
Fitch further indicates that, from its projected figures, the cost elements to benefit more will be the medical device market due to increasing government spending on health and economic recovery over 2024.
“We believe ongoing health infrastructure projects and rollout of the National Health Insurance Scheme will continue to support increased budgetary spending on health over the coming decades as well spending on pharmaceuticals and medical devices”, Fitch Solutions said in its new release.
“We further highlight recovery in Ghana’s real Gross Domestic Product in 2024 after sharp declines in 2022 and 2023 will also support private spending on medical devices and medical devices imports in the country over our forecast period.”
GDP forecast
“We forecast real GDP growth to accelerate to 3.7% in 2024 from an estimated 3.0% in 2023. However, GDP will remain below the five-year pre-pandemic average of 5.3% as a result of strong price pressures and fiscal consolidation”, the UK based firm added.
Medical devices market to record double digit growth
In terms of the medical devices market, it said all product categories will post high to double digit growth in US dollar terms, led by consumables and dental products.
Consumables accounted for more than a quarter of the total medical devices market in Ghana, and the category is expected to record the fastest Compound Annual Growth Rate (CAGR) growth of 21.3% in US dollar terms over our five-year forecast period to 2027.
“We believe growth in consumables over the near-to-medium-term will continue to be supported by improving access to healthcare in Ghana as the country continues to implement its universal health coverage goals”, it pointed out.
“While accounting for the smallest portion of the medical devices market, dental products will record a 2022-2027 CAGR of 21.1% in US dollar terms. Dental services such as tooth replacement and filling, root canal therapy, dental X-ray and scaling are provided free of charge in the public health sector in Ghana, however access remains limited in rural areas due to a shortage of equipment and trained dentists”, it furthered.
Fitch Solutions said demand for diagnostic products is also expected to remain strong as the market copes with prevention and treatment with the double burden of chronic and communicable diseases.
Strategic Purchasing for Primary Health
Care in Ghana
At the recent held Ghana’s Health Sector Annual Summit 2023 in Accra, in June this year, it was confirmed that, the National Health Insurance Scheme (NHIS) is the main source of financing primary health care services in Ghana. The Scheme purchases health services for its members from over 4000 accredited healthcare providers.
In 2020, the Scheme spent GH₵ 2.39 billion (approximately USD 408 million) on healthcare providers’ claims. Outpatient care accounted for the largest share of NHIA spending, with GH₵ 1.37 billion (approximately USD 235 million), representing 57.3%. The NHIA has set provider payment rates for healthcare services, which are negotiated annually with healthcare providers.
Available evidence suggests that since the implementation of the NHIS in 2003, the NHIA has employed different payment models, including fee-for-service (FFS) and diagnosis-related grouping (DRG), and piloted the capitation method. However, the scheme continues to face some challenges, including the following:
Exclusion of some preventive, health promotion, and specialized services: The NHIS does not cover all health services, and this leads to
patients paying out-of-pocket for the excluded services.
Sustainable Financing for Primary Health Care towards Attainment of Universal Health Coverage In Ghana:
Over the last three decades, the health sector has implemented interventions to improve services at the Primary Health Care (PHC) level, for example, the Community-based Health and Planning Services (CHPS) concept.
Recent interventions to reorganize PHC services for further improvement in health outcomes include:1) development of the Essential Health Services Package; 2) revision of the incentive package for health professionals in rural areas; 3) introduction of the Network of Practice; 4) implementation of framework contract for tracer medicines; and 4) scaling up of the last
mile distribution of essential medicines and other commodities.
However, efficient allocation of resources to finance these interventions to realize
the desired outcomes is a challenge confronting the stakeholders.
There has not been a dedicated source of funding for PHC services over the years. Funding for PHC services is uncoordinated, leading to wastage,
low service coverages, and poor health outcomes. Although the NHIS pools funds for purchasing PHC for the population, some PHC services are
not covered by the scheme, for example, health promotion and other preventive services. In addition, the effective use of these resources has
been a concern by many health sector actors. Lately, there has been a call by stakeholders to increase resource allocation to finance services at the PHC levels towards the realization of UHC.
The National Executives of the Private Newspapers and Online News Publishers Association of Ghana (PRINPAG) have met with the Algerian Ambassador to Ghana, His Excellency Ali Redjel in his office in Accra.
The meeting, which was at the invitation of the Ambassador, was to discuss how PRINPAG can support the Algerian Embassy to deepen bilateral relationships between Ghanaian and Algerian journalists.
Edwin Arthur and Algerian Ambassador to Ghana
Among others, the Ambassador highlighted the importance of the media in all walks of life, including foreign relations and diplomacy. He said the media is a powerful tool that, when properly resourced, could support the development agenda of every institution through the dissemination of accurate news and information.
According to him, the Embassy is interested in creating a lasting relationship with the media in Ghana and sees PRINPAG as a strategic partner that can contribute to the dissemination of accurate information, hence the meeting.
Jorge Wilson and the Algerian Ambassador to Ghana
He highlighted the historical and cultural ties between Ghana and Algeria, dating back to the independence struggles of both countries.
In his remarks, President of PRINPAG, Andrew Edwin Arthur, who led the five-member delegation, lauded the initiative and assured that, the Association stands in readiness to project accurate news on Algeria.
He sought the support and guidance of the Algerian embassy to access credible sources and contacts in Algeria for professional exchange programmes.
PRINPAG agreed to support the Algerian embassy for good collaboration.
The Embassy has agreed with the proposal to facilitate the formation of a partnership between PRINPAG and the Algerian Press Service (APS) for the exchange of news and information about Ghana and Algeria for the development of both countries in all sectors and on African issues.
This would culminate in training and exchange programmes with Algerian journalists so as to learn from their best practices and experiences, among others.
There would also be a deliberate promotion of accurate and balanced reporting on the bilateral relations between Ghana and Algeria, especially in the areas of economic, trade, investment, agriculture, infrastructural development and cultural exchanges.
