
A bullish President John Mahama yesterday pledged more jobs for
Ghanaians through his government’s plans this year to boost public
investment in infrastructure -- mainly transport, housing, energy and
new secondary schools that are the flagship of his educational sector
projects.
Seizing on the opportunity of a first-anniversary address and interview
with the media at the Flagstaff House in Accra, the President rejected
the gloom that some have expressed over the economy because of the
spiralling cost of living, saying he is positive about the outlook for
2014.
“I believe 2014 is going to be a good year and the beginning of good
things to come. We have the bright hope for a great future...building on
the foundation of 2013,” Mr. Mahama told an audience that included
journalists, advisors, and ministers.
The President’s words of optimism stand in sharp contrast to the
widely-held view that the current year will be financially stressful for
consumers and firms because of the impact from government’s fiscal
adjustment policies.
The policies, which aim to slash the budget deficit and increase
revenue to keep up infrastructure investment, have led to tax hikes,
increases in utility costs and petroleum prices -- after subsidies were
trimmed -- and a proposal to freeze the salaries of government workers
this year, which would imply a reduction in their real wages.
Mr. Mahama defended the measures, likening them to every ordinary
family’s efforts to cut back its expenditure when faced with soaring
household debt. He said his government seeks to balance-out its
expenditure and income, the gap between which was 12 percent of GDP at
the start of 2013.
He added that the higher-than-expected deficit in 2013 -- 10.2 percent
of GDP as opposed to a target of 9 percent -- shows “the challenge of
governance” or the difficulties of having to reconcile the needs of the
country with the revenues available to achieve them.
But he insisted that despite the missed targets -- GDP growth was also
slower in 2013 than expected -- government laid a good foundation on
which it is set to launch major initiatives this year.
He said public works projects to expand the ports, build new roads,
revamp the parlous rail lines, increase housing provision, and construct
100 new secondary schools will create more jobs for Ghanaians.
He also promised support for youth start-ups through the Youth
Enterprise Centre project that will be launched “in the coming weeks”
with GH¢10million funding. The centre will finance the business plans of
young entrepreneurs and guide the progress of their enterprises.
The promise of jobs seemed however to rely almost entirely on public
investment plans, with little said by the President on how the private
sector will be supported by his government to create more jobs -- the
route seen by most people as the most sustainable way to expand
employment.
And on the question of how his government will address the scourge of
graduate unemployment, Mr. Mahama’s style of rhetoric changed from what
his government will do, or is doing, to what universities and employers
must do to solve what he suggested was a more complex kind of
joblessness.
The private sector featured, however, in his strategy to increase
housing for workers, as he said he will seek advice from financiers and
mortgage providers on how to deepen the mortgage market in Ghana.
The President, who has promised at least 8 percent GDP growth per annum
up to 2016, also spoke about restructuring the economy and hinted that
this will be the main thrust of the government’s upcoming medium-term
development plan to consolidate Ghana’s middle-income status.