Mr Cobblah who is Director of investment advisory services firm, C-NERGY Ghana limited explained that Ghana’s huge investor confidence is coming on the back of an enhanced economic profile of the country following the publicized economic stability, improvements in the macroeconomic indicators and new prospects in oil and gas.
Employ PPP approach in bridging infrastructure deficit
PPPs have been identified as one of the alternate options to raise the investments required in bridging the country’s infrastructure deficit.
Several PPPs are being considered for various infrastructure projects stated in the budget. However, lack of a PPP legal framework to facilitate private investment is a major drawback.
A PPP framework provides a clear legal framework for developing, procuring, and revaluating PPP projects. We urge the Government to make the passage of the PPP bill into law a priority in 2018 to create jobs and advance efficiency.
Banks must invest in power, infrastructure sectors
The investment advisor challenged banks in the country to commit their capital to fund infrastructure projects initiated by government.
“We expect the top-tier banks to nurture their interest in the power and infrastructure sectors, more so when some of these banks purposefully sourced capital for this. The multiplier effect of any such capital deployment should boost economic activities,” Mr Cobblah pointed out.
Evidence of confidence in economy
The Bank of Ghana’s latest confidence surveys conducted late last year pointed to improved business and consumer confidence in the economy.
According to the Bank, the results of the survey reflect the favourable prospects for industry, household’s financial situation and improvement in the general economic environment.
Business confidence on the rise - AGI
Results of a survey conducted by the Association of Ghana Industries (AGI) dubbed Business Barometer (BB) for the first and second quarters of 2017 revealed growing optimism among businesses in the country.
This the AGI said was in response to the raft of measures government was rolling out, including the tax cuts and stimulus packages for some struggling businesses.
The BB measures the level of confidence in the business environment and predicts short-term business trends.
Economic growth rising
Ghana’s economy grew by 6.6, 9.0 and 9.3 percent in the first, second and third quarters respectively, driven largely by the oil sector.
It is instructive to note that the Ghana Statistical Service (GSS) had projected the economy to end the year at 7.9 percent quite lower than the realised 9.3 per cent. This growth was significantly substantial compared to the 4.6 per cent recorded in the third quarter of 2016.
According to the GSS, the third quarter growth was influenced by a huge jump in industry’s performance which recorded a 16.6 growth.
2018 GDP achievable
Mr Cobblah opined that the GDP growth of 6.2 per cent in 2018, (including oil) was achievable and could be improved particularly through aggressive infrastructure development.
Technical, vocational education crucial to industrialisation agenda
Government policy under the educational sector seems to focus more on the Free Senior High School (SHS) Programme aimed at ensuring accessibility of education throughout the nation.
“In this regard we urge government to pay equal attention to other areas such as primary as well as technical and vocational education, which also contribute to industrialization. Further, while the progress under education is commendable, we urge the Government to support the private sector to tap into the enormous potential of the private sector to impact the economy,” the investment advisor noted.
Granting of tax reliefs to privately-owned universities and privately owned senior High Schools is encouraging and should be sustained to help build human capital that the country needs in light of industrialization drive being pursed.