Finance minister-designate, Dr Cassiel Ato Forson
Dr. Cassiel Ato Forson, the finance minister designate, has pledged to prioritize the development of Ghana’s microeconomy to stabilize the Cedi and generate employment opportunities for citizens.
“When approved [as the Minister of Finance], I’ll dedicate a considerable amount of my attention towards the development of the microeconomy, the real sectors of our economy, to help create jobs and stabilise our currency,” he said.
Dr. Forson made the commitment during his vetting by Parliament’s Appointments Committee on Monday, after being nominated by President John Dramani Mahama for the position of Finance Minister.
He expressed concern over the country’s long-standing focus on the microeconomy and advocated for a shift towards strengthening the microeconomy.
Ghana’s microeconomy is largely defined by a significant informal sector, with many Small and Medium-sized Enterprises (SMEs) that have a substantial impact on individuals and households.
“Ghana is not out of the woods yet, and there is a lot of work to do. But it is important to understand that you do not only grow the economy from the macro, you grow the economy also from the micro.”
“You do not necessarily create jobs only from the macro, you create jobs from the micro; you do not stabilise the Cedi only from the macro, you stabilise the Cedi also from the micro [economy]. If you want to fix the Cedi and you fail to structural challenges we face as a country, you will fire fight,” he added.
Dr. Ato Forson said that the government would focus on incentivizing the informal sector to encourage their contribution to the country’s development, particularly through Pension Schemes.
He also reaffirmed the government’s commitment to establishing an independent credit office to address debt challenges and to carefully implement measures, including expenditure cuts, that would protect vulnerable groups.
Regarding external support, Dr. Ato Forson highlighted the government’s intention to strengthen its collaboration with the African Development Bank (AfDB), World Bank, and the International Monetary Fund (IMF) to secure more affordable financing options for the country’s development.
Praising the nominee, Madam Abena Osei-Asare, a former Minister of State at the Finance Ministry, remarked, “you put us on our toes when we were in Parliament, and I hope to do same constructively.”
She shared some figures, noting that by the end of 2024, the previous government had achieved an economic growth rate of 5.8 percent, up from 2.9 percent in 2023.
Madam Osei Asare also pointed out that inflation had decreased to 23.2 percent in December 2024, down from 28 percent the previous year.
Additionally, she highlighted the banking sector’s growth, with assets rising from GH¢274 billion in 2023 to GH¢376 billion in October 2024.
Madam Osei Asare also noted that private sector credit had increased by 28.8 per cent, compared to a negative 7.5 percent during the same period the previous year.
The country’s primary balance had also shifted from a deficit to a surplus, with the Ghana holding reserves equivalent to 3.5 months of import cover, she noted.
Watch the latest edition of BizTech below:
