By Lydia Kukua Asamoah, GNA
Accra, Nov. 15, GNA - Government has worked very hard to reverse the deteriorating macroeconomic environment it inherited, Mr Ken Ofori-Atta, the Finance Minister, has said.
Presenting the 2020 Budget Statement and Economic Policy to Parliament in Accra on Wednesday, the Minister said, government has reduced inflation and interest rates, stabilised the exchange rate, restored sanity in the financial sector and introduced large scale social intervention programmes.
He said education and smallholder agricultural initiatives such as planting and rearing for food and jobs, among others were the prerequisites for private sector-led growth and job creation, and these are were areas developed by the state.
He said in the effort to provide a private sector credit delivery, it would from 2020, begin major interventions to boost private sector credit to support all segments of the business community.
He said government would partner with Fintech companies, local banks and mobile money operators to deliver micro credit to Ghanaian businesses and individuals in the coming year.
“This intervention is expected to deliver quick loans on favourable terms using technology driven platforms to do the credit assessment.
“This initiative is in line with government’s digitization agenda and offers an opportunity for MSMEs to apply for loans on their mobile phones with minimal human intervention.
“The initiative will go live by 2020. The benefits of this intervention include the provision of needed micro capital for business expansion and capital expenditures.
“It will also support the working capital needs of small Ghanaian businesses.
“Our market women will be able to access credit using their mobile money wallets to stock up goods in order to sell more.
The initiative is expected to increase productivity and profitability as well as contribute to job creation. This is in direct response to our findings from the nationwide survey, the Minister said.
He said as part of government’s support for Long Term Institutional Investors and to encourage the establishment of Private Equity, Venture Capital and Mutual Funds, which would improve the ecosystem for start-ups, the current application of VAT on management fees for these funds would be abolished; as this discouraged institutional and angel investors, both local and foreign, from investing in such critical funds for private sector growth.
“This will improve the accumulation of long-term funds in the economy to support growth and jobs”, he said.
GNA
Read Full Story
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS