An audit and financial advisory firm, Deloitte Ghana, has called on the Government to take immediate and strategic action to support local industries, reduce reliance on imports, and implement long-term structural reforms aimed at stabilising the economy.
In its latest policy advisory report, Deloitte highlighted the urgent need for the government to roll out policies that prioritise domestic production of high-import commodities where Ghana holds a comparative or competitive advantage.
Key among the recommendations are the provision of incentives for local manufacturing, enhanced infrastructure, and affordable credit for businesses.
“Government should, as a matter of urgency, work to implement policies that support local industries in producing large-ticket import items,” Deloitte advised, and added, “Policy support can include incentives, improved infrastructure, and access to credit.”
Agriculture Modernisation Essential
The firm further urged the government to encourage investment in modernising the agricultural sector to boost food security and reduce the country’s growing dependency on imported food products.
Measures proposed include de-risking the sector through investments in irrigation, dams, and improved seeds and seedlings. According to Deloitte, such interventions would improve agricultural output and enhance yield, thereby contributing to long-term food self-sufficiency.
Addressing Power Sector Challenges
Deloitte also flagged the country’s persistent energy sector inefficiencies and rising debt as major obstacles to industrial competitiveness. It recommended a holistic approach to resolving the power issues to ensure a stable supply of electricity, which is critical for the growth of local industries.
“Ghana, as part of its structural reforms, needs to reduce the energy sector debt burden, enhance overall efficiency in energy production and distribution, and work to reduce the cost of power,” Deloitte stated, and continued, “This will be key in ensuring a reliable power supply and boosting the competitiveness of local industries.”
Ensuring Long-Term Stability of the Cedi
While acknowledging the recent appreciation of the Ghanaian cedi, Deloitte warned that sustaining this trend would require a multi-pronged strategy focused on fiscal discipline, structural reforms, foreign exchange management, and effective monetary policy.
Under fiscal reforms, the advisory firm urged the government to enforce strict expenditure controls aimed at reducing budget deficits, avoiding unfunded projects, and curbing election-related spending.
Deloitte also stressed the importance of enhancing revenue mobilisation by broadening the tax base, increasing collection efficiency, and reducing tax exemptions. It identified areas such as property rates, environmental taxes, and fines for misconduct as untapped revenue sources.
A Business Desk Report