Karen Kwarteng, Head of Global Market Sales at Stanbic Bank, has highlighted positive shifts in Ghana’s credit fundamentals describing it as a strong foundation for economic transformation.
She shared this in an interview with CNBC Africa when she discussed economic expectations ahead of the Government of Ghana’s presentation of the 2025 budget on Tuesday, March 11.
Reflecting on the country’s current economic landscape, Madam Kwarteng identified some encouraging signs of recovery especially in Ghana’s credit fundamentals. “We’re seeing positive developments, such as surplus in the current account and a rebound in foreign exchange reserves, which now stand at US$8.9 billion. These indicators provide a strong foundation for the government to build on as it seeks to implement its economic transformation agenda,” she said.
She further stressed the importance of fiscal discipline in the upcoming budget, commending the government’s efforts to minimize overspending, reduce waste, and enhance tax mobilization. “The market sentiment suggests a leaning towards austerity measures to ensure fiscal stability. This will be critical in maintaining investor confidence and fostering long-term economic resilience.”
A key focus of the budget, according to her, should be on bolstering the agricultural sector, and streamlining government tax revenues. “The implementation of the Ghana card system is a pivotal step in widening the tax net to include more individuals and businesses, especially within the informal sector,” she said.
Digitalization, Kwarteng added, will play a crucial role in enhancing tax compliance and attracting foreign direct investment. “By leveraging technology, Ghana can create a more transparent and efficient tax system,” she explained. “This will not only boost revenue but also improve the ease of doing business in the country.”
On the global front, she highlighted the need for Ghana to maintain a stable currency regime and shield itself from external shocks. “With emerging economies facing challenges due to a strong US dollar and global uncertainties, it is essential for Ghana to adopt measures that safeguard reserves and uphold currency stability. This will create a conducive environment for businesses and attract foreign investments.”
She expressed optimism about Ghana’s progress under its International Monetary Fund (IMF) programme. With the fourth review based on fiscal data ending December 2024 underway, Kwarteng expressed confidence that Ghana has met the IMF’s targets.
