Energy Economist at the University of Professional Studies, Accra (UPSA), Dr. Abdul-Jalil Ibrahim, has cautioned against the removal of electricity subsidies for manufacturing companies, arguing that affordable power is critical for industrial competitiveness and job creation.
“If you want to create jobs, a competitive economy in terms of manufacturing, we need cheaper energy for the industrial sector,” he stated at a post-budget dialogue organized by UPSA and the Institute of Economic Research and Public Policy.
Dr. Ibrahim’s call comes amid ongoing discussions on economic restructuring, as the government seeks ways to manage its financial commitments while fostering industrial growth.
He stressed that an increase in energy costs for manufacturers could weaken Ghana’s competitive position within the sub-region, leading to higher production costs, job losses, and reduced foreign investment.
Govt’s commitment to agriculture
Meanwhile, the Director of Presidential Initiatives in Agriculture and Agribusiness, Dr. Peter Boamah Otokunor, reaffirmed the government’s commitment to revitalizing the agricultural sector.
He explained that the recently announced budget prioritizes efficiency in resource allocation, even as agriculture’s budgetary allocation sees adjustments.
“If you are looking at revenue rationalization and cutting down business taxes, and bringing some comfort to the business environment and individuals, it means you have little room to operate. And that means efficiency will be a matter of necessity,” he said.
Dr. Otokunor emphasized that the government is shifting focus from broad input subsidies to the establishment of farmer services centers, which will provide a range of support beyond just farm inputs, ensuring higher productivity and food security.
Senior Lecturer at UPSA, Dr. Eric Boachie Yiadom, warned that the government risks missing its developmental targets if it fails to meet revenue collection expectations.
His concerns stem from Ghana’s increased domestic revenue mobilization efforts, which have seen a significant rise from GH₵50 billion in 2022 to an estimated GH₵150 billion in 2024
“If we don’t get it correct, many of the developmental projects which this government intends to do will be stranded,” he cautioned.
Dr. Yiadom also noted that the budget provided little clarity on how the government plans to sustain revenue generation, raising concerns about the feasibility of its fiscal targets.
The Path Forward
As the government seeks to balance economic reforms with industrial growth, experts continue to stress the importance of targeted subsidies and strategic investments.
Maintaining affordable electricity for manufacturers, supporting agricultural modernization, and strengthening industrial capacity are seen as crucial steps towards ensuring long-term economic stability and job creation in Ghana.
By SELORM GBORBIDZI, Accra
