By Alex Ababio
The nation’s economic growth in the first half of 2024 has surpassed pre-pandemic levels, according to the Minister of Finance, Dr. Mohammed Amin Adam.
Speaking at the Second Quarterly Economic Roundtable (QER) in Accra, Dr. Amin Adam revealed that the economy grew by 5.8% in the first half of 2024, 0.4 percentage points higher than the growth rate during the same period five years ago, before the onset of the COVID-19 pandemic.
“The fact is, the half-year growth of 5.8% is the highest in the last five years,” the Finance Minister noted. “It’s encouraging to see industries and agriculture leading the growth, with 4.8% growth in quarter one and 6.9% in quarter two. Even more promising, all three sectors—industry, agriculture, and services—contributed to the second quarter growth.”
Dr. Amin Adam highlighted the renewed confidence among multinational companies, including firms like Virgin Atlantic, which had previously exited during tough times but are now returning with fresh investments.
He underscored the significance of the recovery, stating, “We are back on track, and this signals the positive impact of our policies aimed at supporting the private sector. The actors within these key sectors are receiving the backing they need.”
The QER, a collaborative initiative between the Ministry of Finance and the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana, serves as a platform for dialogue between policymakers and academia to shape economic policy through research-driven insights. The latest session focused on the theme, “Driving Economic Growth through Small and Medium Enterprises (SMEs).”
Dr. Amin Adam, however, urged caution regarding future economic prospects. “We are aware that sustaining this growth isn’t guaranteed. To secure these gains, we must mitigate the risks we face,” he said. He called for a reconsideration of policies and stronger partnerships with stakeholders, particularly within the SME sector, to continue driving growth.
“The ministry is excited about the focus on SMEs at this second roundtable. They are a crucial anchor for our economic expansion,” he added.
Professor Nana Aba Appiah Amfo, Vice-Chancellor of the University of Ghana, emphasized the university’s commitment to influencing national policy through knowledge-sharing and research. “The QER has found a worthy home here at the University of Ghana,” she said, pledging the institution’s continued role in shaping public policy and fostering innovation for national development.
Kyle Kelhofer, Senior Country Manager for Ghana, Liberia, and Sierra Leone at the International Finance Corporation (IFC), echoed the sentiment, noting the essential role SMEs play in the country’s economic transformation. “SMEs drive job creation, innovation, and are key contributors to GDP,” Kelhofer said. “This roundtable is a timely reminder of the need to create an enabling environment that allows SMEs to unlock their full potential.”
He added that the IFC’s approach aligns with the discussions at the QER: “Bringing together stakeholders to deliberate and address key issues that impact economic growth is essential to improving lives, especially for underserved communities.”
Emeritus Professor Ernest Aryeetey, a former Vice-Chancellor of the University of Ghana, emphasized that SMEs hold tremendous potential for economic growth, though they face significant challenges. “The sector is constrained by various factors, including the business environment and innovation barriers, which directly impact productivity,” he observed.
The event, organized by the Ministry of Finance in collaboration with ISSER, also featured notable speakers including Prof. Peter Quartey, Director of ISSER, Dr. Humphrey Kwesi Ayim-Darke, President of the Association of Ghana Industries, and Kosi Yankey-Ayeh, CEO of the Ghana Enterprises Agency. Together, they engaged in discussions aimed at charting a path for sustainable economic growth through the development of SMEs.