The Minister of Finance, Ken Ofori-Atta says President Akufo-Addo will in the coming weeks launch a 100-Billion Ghana Cedis development programme to revitalize enterprises in Ghana.
This, the Finance Minister said, will be called the Ghana Coronavirus Alleviation and Revitalisation of Enterprises Support (Ghana CARES) “Obaatan Pa” Programme .
“Mr. Speaker, we wish to take this opportunity to announce to the people of Ghana that their President and his team have done a lot of thinking since March. We have brainstormed over the crisis with the view of using the challenges it presents rather as an opportunity to transform Ghana and for all Ghanaians. I am happy to announce that in the coming weeks the President will launch a Gh¢100 billion development programme. An ambitious and unprecedented three and half years programme called: Ghana CARES, “Obaatan Pa” which will anchor the comprehensive transformation of our society” the Finance Minister said.
The Minister said this during the 2020 Mid-Year Budget presentation in Parliament today, Thursday, July 23.
THE COVID-19 ALLEVIATION AND REVITALISATION OF ENTERPRISES SUPPORT (CARES) PROGRAMME
The Ghana CARES ‘Obatanpa’ programme is an unprecedented, bold and audacious GHȼ100 billion programme for Ghana to re-imagine and re-envision a future like never
before.
It is sequenced in two phases: a Stabilisation Phase that runs from July to the end of the year (2020); and a medium-term Revitalisation Phase will accelerate the Ghana Beyond Aid transformation agenda.
Main Elements Of Each Phase Of The Programme
STABILISATION PHASE:
The stabilisation phase of CARES will ensure food security, protect businesses and worker incomes, strengthen the health system, attract private investments and support Ghanaian businesses.
Government will intensify support for farmers through the Planting for Food and Jobs and Rearing for Food and Jobs programmes.
Facilitate access to financing for rice millers to enable them to purchase paddy from rice farmers.
Provide financial support to the National Buffer Stock Company and Ghana Commodity Exchange to enable them store and trade stocks as needed to smoothen out supplies on the market.
Government will inject liquidity into the system to ease cash flow difficulties of businesses and protect workers by honouring obligations to contractors and suppliers in a timely manner. Building on recent good experience of sourcing from the pharmaceuticals and textile & garment sectors, Government will expand procurement from local producers for its goods and services
Some businesses may have to shed some labour in order to survive. In the unlikely event that this happens, Government, through the Ministry of Employment and Labour Relations (MELR), will collaborate with the Social Partners (Labour and Employers) to establish a National Unemployment Insurance Scheme.
The scheme will provide temporary income support to workers that are laid off and also provide them access to re-training to help them take advantage of employment opportunities in new fields.
Government will soon roll out an Emergency Preparedness and Response Plan II, which will enable Ghana to continue strengthening the health system.
Government will, over the course of this year, work with Parlaiment to pass a number of legislations that will provide a strong framework to raise the funds, attract the investments necessary for the revitalisation and transformation phase of CARES and rationalise and strengthen support to SMEs. These will include Bills on tax exemptions, public-private partnerships (PPPs), the Ghana Investment Promotion Centre (GIPC), Development Finance Institutions, Home Ownership Financing and Enterprise Ghana.
Medium-Term Revitalisation Phase
Over the medium-term (2021 to 2023), Government’s plan is to implement a phase 2 of Ghana CARES which will revitalise and transform the economy. The main focus will be to accelerate the implementation of the Ghana Beyond Aid agenda.