This is unacceptable

THE latest report from the Public Interest and Accountability Committee (PIAC) sheds light on a troubling trend: the consistent underfunding of Ghana’s industrial sector from the Annual Budget Funding Amount (ABFA).

Despite industrialisation being designated as a priority area since 2020, the sector has seen a steady decline in oil fund allocations — from 1.15% in 2020 to a meagre 0.11% in 2023.

The lack of any allocation in 2024 only underscores the government’s apparent retreat from its commitment to fostering industrial growth.

Oil revenues, derived from a finite resource, are intended to propel Ghana’s economic transformation by investing in sectors that create jobs and increase resilience. Industrialisation, with its potential to diversify the economy and reduce dependency on imports, should be at the forefront of this vision.

Yet, the dwindling allocation signals a lack of prioritization, raising concerns about the strategic use of these crucial funds.

It is time for the Ministry of Finance to demonstrate accountability in the distribution of ABFA resources. Failing to channel these funds into a robust industrialisation agenda, risks squandering the opportunity to build a self-sustaining economy.

PIAC’s recommendations for consistent and substantial disbursements to the industrial sector deserve serious attention. Priorities cannot simply be labels; they must be financially reinforced, especially when they align with Ghana’s long-term economic ambitions.

The cyclical three-year priority review may offer flexibility, but it also highlights the need for a long-term national development plan to ensure continuity and commitment.

As the government evaluates priorities for the next phase, it must do so with the understanding that Ghana’s industrial future cannot be sacrificed for short-term financial gains. Prioritising industry today means securing a stronger, more independent economy tomorrow. The time to act is now, with a renewed commitment to turning policy into practice through adequate funding for industrialisation.