“One key issue is the diminishing expectations of investors regarding Ghana's competitiveness in its main export commodities, namely cocoa and oil. This has negatively impacted the country's trade balance in 2024”.
It is quite worrying to learn that an increase in electricity prices led to a decrease in ECG's revenue. This outcome does not come as a surprise. Like the effects observed in the taxation Laffer curve, the combination of raised electricity prices and the proposed 15% VAT on electricity charges will likely exacerbate ECG's financial difficulties.
“The $5.4 billion that we want, whatever cut-off point that is being approved, we should be able to convince these external creditors that the $5.4 billion is what will help our economy and help us to complete our restructuring programme”, he explained
They are however hopeful the year 2024 will bring some relief for businesses as government expects the $600 million second tranche funding from the International Monetary Fund (IMF).