KEY POINTS
- The forum emphasized the importance of SMEs in sustaining economic growth.
- Ghana’s half-year economic growth reached 5.8 percent, surpassing pre-pandemic levels.
- Industry and agriculture were the key drivers of growth in the first half of 2024.
Ghana’s economy has exceeded pre-COVID-19 levels, with the nation’s half-year economic growth hitting 5.8 percent, according to Finance Minister Dr. Mohammed Amin Adam.
This growth rate is 0.4 percentage points higher than the growth recorded in the same period five years ago, signaling a significant recovery.
At a recent economic forum in Accra, Dr. Adam highlighted that the growth trajectory has attracted multinational companies, including those that had previously left the country during difficult times, such as Virgin Atlantic Airlines.
Economic Revival Led by Industry and Agriculture
The Finance Minister noted that the half-year growth rate of 5.8 percent is the highest in the past five years. He explained that the industry and agriculture sectors largely drove the 4.8 growth in the first quarter and 6.9 percent in the second quarter. Services also contributed to the strong second-quarter performance.
“This signals that we are back on track. Our policies supporting the private sector are showing significant impact, and economic actors in these sectors are receiving the necessary support,” Dr. Adam stated during the Second Quarterly Economic Roundtable (QER) in Accra.
Focus on SMEs to Sustain Growth
Despite the impressive growth figures, the Finance Minister cautioned that continued growth is not guaranteed and emphasized the need to mitigate key risks. According to Graphic Online, he underscored the importance of reinforcing partnerships with stakeholders, particularly the small and medium enterprise (SME) sector, to drive sustained economic growth.
The forum, held in collaboration with the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, focused on the theme: “Driving Economic Growth Through Small and Medium Enterprises (SMEs).”
Prof. Nana Aba Appiah Amfo, Vice-Chancellor of the University of Ghana, reiterated the institution’s commitment to influencing public policy and fostering innovation through informed insights and collaboration with key stakeholders.
SMEs: The Engine for Economic Transformation
Speakers at the event, including Kyle Kelhofer, Senior Country Manager for the International Finance Corporation, and economist Prof. Ernest Aryeetey, emphasized the critical role of SMEs in driving economic transformation.
SMEs contribute significantly to job creation, innovation, and the country’s gross domestic product (GDP).
Prof. Aryeetey stressed that while the SME sector holds immense potential, it faces challenges related to the business environment and innovation.
The discussion reinforced the need for developing an enabling environment to unlock the full potential of this vital sector.
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