By Winfred Kwasi Dodzih(Dr)
As Ghana approaches the mid-year point, the unveiling of the economic budget and financial statements becomes a pivotal event, especially for key stakeholders such as the insurance sector, drivers of commercial and private transport, and cross-border traders. These groups have distinct yet interconnected expectations that revolve around financial stability, regulatory clarity, and supportive policies that can drive growth and sustainability in their respective areas.
Insurance Sector Expectations
- Regulatory Stability and Reforms:
The insurance sector anticipates the mid-year budget to provide clarity on regulatory reforms aimed at enhancing the industry’s resilience and growth. Clear guidelines and stable regulatory frameworks are essential for insurers to plan and operate effectively. Any updates on the implementation of the Insurance Act and measures to ensure compliance will be closely monitored.
- Incentives for Innovation:
To foster innovation, the insurance sector looks forward to incentives that promote the adoption of digital technologies and innovative insurance products. This includes tax breaks or subsidies for companies investing in technology that enhances customer service, data analytics, and risk management.
- Support for Microinsurance:
Given the large informal sector in Ghana, there is a growing demand for microinsurance products. The insurance industry expects the budget to address ways to support microinsurance schemes that cater to low-income households and small businesses, ensuring financial protection for a broader segment of the population.
- Enhanced Risk Management:
With increasing climate-related risks, the insurance sector is looking for government initiatives aimed at improving risk management infrastructure. This includes investments in disaster risk reduction, climate resilience projects, and partnerships between public and private sectors to mitigate risks associated with natural disasters.
Drivers of Commercial and Private Transport Expectations
- Fuel Price Stability:
One of the primary concerns for drivers, both commercial and private, is the stability of fuel prices. The mid-year budget is expected to address measures to stabilize fuel prices, potentially through subsidies or adjustments in fuel taxes. Predictable fuel costs are crucial for managing operating expenses and ensuring fare stability.
- Infrastructure Development:
Drivers are looking for continued investment in road infrastructure. Improvements in road quality and expansion of road networks reduce vehicle maintenance costs and enhance safety. Announcements of new road projects, maintenance plans, and upgrades to existing infrastructure are highly anticipated.
- Tax Relief and Incentives:
Commercial drivers, in particular, expect tax reliefs or incentives that can reduce their financial burdens. This could include reduced vehicle import duties, lower taxes on spare parts, or incentives for using environmentally friendly vehicles.
- Safety and Regulation Enhancements:
The transport sector is keen on policies that enhance road safety. This includes better enforcement of traffic regulations, investment in road safety campaigns, and the introduction of modern traffic management systems. Measures that support the well-being of drivers, such as health insurance schemes and pension plans, are also expected.
Cross-Border Traders Expectations
- Streamlined Customs Procedures:
Cross-border traders are looking for measures that simplify customs procedures and reduce delays at border points. This includes adopting digital solutions for customs clearance, enhancing the efficiency of border agencies, and reducing bureaucratic hurdles.
- Trade Facilitation Initiatives:
Traders expect the budget to highlight initiatives aimed at facilitating trade, such as improvements in transport and logistics infrastructure, and development of trade corridors. These measures can significantly reduce the cost and time associated with cross-border trade.
- Financial Support and Access to Credit:
Access to affordable credit remains a critical issue for cross-border traders. The mid-year budget should address mechanisms to improve financial inclusion, such as specialized credit facilities, reduced interest rates, and support for microfinance institutions that cater to traders.
- Strengthening Trade Agreements:
Traders are keen on updates regarding regional trade agreements, such as the African Continental Free Trade Area (AfCFTA). Strengthening these agreements and ensuring their effective implementation can open up new markets and provide a more favorable trading environment.
Conclusion
The mid-year economic budget and financial statements are crucial for providing a clear direction for Ghana’s economy. For the insurance sector, drivers of commercial and private transport, and cross-border traders, the expectations revolve around regulatory stability, financial incentives, infrastructure development, and supportive policies that enhance their operational efficiencies and growth prospects. Addressing these expectations can significantly contribute to the resilience and prosperity of these key sectors, ultimately driving Ghana’s economic progress.
The writer is the Permanent Secretary, ECOWAS Brown Card Insurance Scheme
