Businesses Must Be Optimistic
– Despite current economic challenges – Joe Jackson
Story: Isaac AIDOO, Accra
CHIEF Executive Officer of Dalex Finance, Mr. Joe Jackson, has called on Ghanaian businesses to remain optimistic and prepare for better days ahead despite the current economic uncertainties.
Speaking during an engaging interview on the Business Breakfast show on Zed 101.9 FM, Mr. Jackson emphasized the dual importance of hope and preparation in overcoming challenges.
“Hope and faith are positive,” Mr. Jackson noted. “But faith is not just waiting for rain during a famine; it’s also preparing for the rain to come. As much as uncertainties lie ahead, businesses must stay hopeful and ready themselves for good opportunities in the future.”
He stressed the importance of adaptability, noting that the private sector must brace for potential shifts in the economy as new government policies take shape. With the upcoming 2025 budget expected to provide more clarity, Mr. Jackson advised a cautious “wait-and-see” approach, adding, “the current situation is volatile, and making predictions beyond the first quarter of 2025 would be premature.”
Lessons from the Informal Sector
Reflecting on 2024, Mr. Jackson identified the informal sector as the most resilient part of Ghana’s economy. Despite challenges such as high inflation and limited access to credit, this sector continued to thrive largely because of its independence from government interventions.
“The informal sector relies very little on the government, and that’s a key factor in its resilience,” he explained. “Perhaps the lesson here is that the government’s heavy involvement in other sectors may stifle growth, and businesses should aim to reduce their reliance on public support.”
However, he acknowledged that this approach may be easier said than done for businesses operating in areas heavily influenced by government policies, urging entrepreneurs to remain innovative and resourceful.
IMF Programme Review
Mr. Jackson underscored the significant role of the International Monetary Fund (IMF) in shaping Ghana’s fiscal policies, pointing out that recent tax hikes were largely influenced by IMF recommendations aimed at managing the country’s debt obligations. He noted that the forthcoming IMF programme review would be critical in determining whether some taxes could be adjusted or remain in place.
“This review could give us a chance to re-evaluate our tax strategy and leverage additional resources to ease the economic burden,” he said. “It’s vital to maintain credibility with our international partners while finding sustainable ways to meet our commitments.”
A Vision for a 24-Hour Economy
Mr. Jackson also weighed in on President-elect John Mahama’s proposal to transition Ghana into a 24-hour economy, describing it as a bold move with significant potential. While he welcomed the initiative, he cautioned that its implementation would require time and meticulous planning.
“The 24-hour economy is an attempt to make Ghana work more efficiently, create more employment, and revive key industries. However, it’s not something that will take off in the first 90 to 150 days of the new administration,” he said.
He highlighted the importance of laying the groundwork for this transformative policy, including legal amendments and strategies to ensure its sustainability.
A Call for Patience and Strategic Planning
In conclusion, Mr. Jackson urged businesses to remain patient and forward-thinking. He emphasized the need for the private sector to focus on resilience and innovation while awaiting clearer policy direction from the government and key partners like the IMF.
“Nothing much is going to happen immediately,” he said. “But as we navigate these challenges, businesses must have hope, prepare for the future, and draw lessons from sectors that have shown resilience.” The interview provided valuable perspectives on Ghana’s economic landscape and offered practical advice to businesses as they navigate an unpredictable fiscal environment.
