Gov’t To Improve Revenue Collection

moneyThe government says it is working through the Bank of Ghana (BoG) to address the depreciation of the value of the cedi.

Among the measures the government has outlined to arrest the falling value of the cedi, are improving revenue mobilisation, realigning the key budget items and enhancing the efficiency of public expenditures and refinancing of portions of public debt to reduce the debt of service costs.

Mr. Joseph D. Chognuru Director of the Financial Sector Division at the Ministry of Finance and Economic Planning, addressing the Standard Bank West African Investors’ conference 2014 in Accra on Monday said the government was committed to addressing the depreciation of the cedi.

The day’s conference, the second to be organised by the Standard Bank was to link local companies listed on the Ghana Stock Exchange with foreign investors, to attract more capital injection into their businesses.

About 19 foreign investors attended the conference and had opportunity to meet one-on-one with some local companies, which participated in the conference.

The cedi recorded a cumulated depreciation of 25 per cent in 2013 and Mr Chognuru said “signs of further depreciation remain’’.

He said the BoG had already injected $20 million into the economy to address the shortage of forex, which was contributing to the depreciation of the cedi.

Mr. Chognuru, reiterated that the government was on the firm path of addressing the country’s short-term fiscal challenges, which were mostly structural and could not be dealt with in a single year.

“Our objective of reducing the fiscal deficit to lower levels over the medium term still remains and will be pursued.”

The director told the investors that Ghana’s economy had evolved over the years and had become an emerging lower middle-income economy with strong growth supported by commodities endowment, diverse economy and strong institutional framework.

“Ghana is currently one of the fastest growing economies in Africa and emerged the number one in the ease of doing business in West Africa, ahead of Sierra Leone, Cape Verde, Liberia and Nigeria. Globally, Ghana ranked 67th in  the  2013, doing business index, among 189 economies.  Ghana also won the award for Best Investment Climate at the CBC-African business in 2008,’’ he said.

The government, he said  was  currently looking forward to partner the private sector with the private sector in the areas of agro-processing, energy and oil and gas, transport ma-nufacturing, real estate, telecommunications and information systems, tourism and infrastructure.

The Managing Director of Stanbic Bank, Alhassan Andani, in his remark said, he was excited about the level of participation of the foreign as well as local investors.

He said the high patronage of the conference demonstrated the confidence foreign investors have in the Ghanaian economy. By Kingsley Asare

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