Press release – 2022 budget statement and economic policy

Hello ladies and gentlemen. Thank you for honoring our invitation to this press conference.

On Friday, November 26, 2021, the Parliament of Ghana was scheduled to sit and conclude the debate on the 2022 Budget Statement and the government’s economic policy. After the closing statements by the majority and minority leaders, the Speaker gave me the opportunity to make a statement in the House.

During the statement, I appealed to the House for the opportunity to engage more with the minority on the demands they raised in their closing remarks. Unfortunately, my request was refused.

I had asked for this opportunity to dialogue with the minority because I believed that the tradition of consensus in budget approval that we had nurtured over the past 5 years was important to our national resolve and determination to come together to transform our society.

The budget was then approved on Tuesday, November 30, 2021. However, in my statement that day, I promised to address the concerns of the minority after further consultation with stakeholders, which I have now done. .

On behalf of the Chairman, I have written to the Right Hon. Speaker of Parliament with details of changes in response to emerging concerns of all stakeholders, including the minority. Please allow me to update the people of Ghana on what we have come up with.

  • with respect to Agyapa Royalties Ltd, we will amend paragraphs 442 and 443 to remove references to pledging mineral royalties. It is important to note that any reference to Agyapa was for informational purposes and, as such, was not reflected in the tax framework;

  • Regarding the unfortunate tidal wave that left around 3,000 people homeless in Keta, we will make the necessary budget allocations of at least GHS 10 million to complete the feasibility and engineering studies for the coastal communities affected. We will broaden the scope of the study to consider a more comprehensive solution to protect Ghana’s 540 km of coastline, including the 149 km between Aflao and Prampram. Meanwhile, NADMO responded to the humanitarian crisis created by the tidal waves on the Keta coastline;

  • relating to the Aker Energy operation, we will modify paragraph 829 of the 2022 Budget relating to the acquisition of a stake in Aker Energy and AGM Petroleum by GNPC, in order to reflect the Parliament resolution of 6 July 2021 according to which “the terms and conditions of the loan for the acquisition of the shares is submitted to Parliament for consideration in accordance with Article 181 of the Constitution; and

  • on reference values, we will avoid any hardship for importers and consumers while preserving the interest of local manufacturing industries to guarantee and develop jobs for our population. This administrative exercise, which reviewed 43 articles out of 81, aims to promote local manufacturing and 1D1F policy, including vehicle assembly. It is important to note that this adjustment only affects 11.4% of the total CAF value, of which 50% for vehicles. According to our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be moderate. The YouStart policy will also support our accomplished traders with appropriate training and access to capital to become manufacturers to expand our company’s industrial base and our import substitution strategy, in line with our Ghana Beyond Aid program.

Dorothy H. Lewis