…but Bawumiah advocates value addition for faster growth
The IMF Economic Outlook has projected several sub-Sahara African (SSA) economies, including Ghana, Senegal, Ethiopia and Ivory Coast to maintain a strong growth of about 6 percent, this year.
SSA, as a whole, has experienced a limited economic recovery, which is mainly driven by its external environment, the report noted.
The region grew at 2.8 percent in 2017 and is expected to grow at 3.4 percent in 2018 and climb up by 3.7 percent in 2019.
However, according to the report, countries that saw their per capita incomes fall in 2017 could see a further decline this year.
Vice President, Dr. Mahamudu Bawumia, observed that the sub-region is witnessing a slow growth, which calls for innovative ways to add value to raw materials before exporting to improve domestic revenue mobilisation.
He reiterated that the country’s economic growth, strongly hinges on Domestic Resource Mobilisation (DRM) to accelerate sustainable growth.
By being vigilant in collecting revenues from tax or non-tax sources, Bawumia said the DRM will create the additional space for sustainable budget expenditures, foster ownership and reduce dependency on foreign aid.
He said tax matters should receive a growing attention to develop cooperation as the relevance of taxation in developing countries for social spending and infrastructural development lies greatly in the collection of resources.
With foreign aid diminishing, he emphasised that Ghana needs to devise ways to improve domestic revenue mobilisation.
Dr Bawumia, expressed these thoughts at the launch of the International Monetary Fund (IMF) Spring 2018 Regional Economic Outlook for Sub Saharan Africa in Accra, May 8.
The Vice President stressed, Ghana needs to embark on a massive value addition drive to sustain its growth in the world economy markets.
‘’For Ghana to first stand along with its Sub Saharan African counterparts and the rest of the world, we need to build a stronger DRM cooperation in order to build a competitive regional market that attracts the needed investment.’’
Additionally, there is the need for the sub-region to harness its vast potential, he strassed
By Mawuli Y. Ahorlumegah