New Economy is government-led, 24-Hour Economy is private-sector-led – Ato Forson clarifies
by Miss Naa · MyNewsGh.comFinance Minister Dr Cassiel Ato Forson has explained that the New Economy programme and the 24-Hour Economy policy have different funding structures, even though both are aimed at transforming Ghana’s economy.
He said the New Economy is a government-sector-led initiative, while the 24-Hour Economy is designed to be driven by private businesses with government providing incentives and support.
Speaking on Joy News after presenting the 2027 Budget in Parliament, Dr Forson said the distinction had been clear from the beginning of the 24-Hour Economy policy.
He explained that the NDC had not planned to use a large amount of public money as seed capital to run the programme.
He said the initial funding for its secretariat was not the same as providing the capital for businesses to operate under the policy.
“From day one, the 24-Hour Economy programme had always been private-sector-led,” he stated.
Dr Forson said the government first needed to restore macroeconomic stability before private investment could take off.
According to him, the improved economic conditions have now created room for businesses to invest and expand their operations.
He said the government had introduced tax and financial incentives to support companies that would participate in the 24-Hour Economy.
He also announced plans to establish the Ghana Sovereign Wealth Fund, which would serve as an equity partner for private businesses seeking government participation in their projects.
He explained that where a private company wanted government to partner with it to create jobs or undertake a business project, the government could take an equity stake through the fund.
“For example, if a private company wants to come into the economy and create the necessary jobs or do business and they want government to partner with them, government will come in as an equity partner using the Ghana Sovereign Wealth Fund,” he said.
He added that the government’s contribution could be 10 per cent, 15 per cent or another agreed percentage, depending on the project.
Dr Forson stressed that the funding model for the 24-Hour Economy was therefore different from that of the New Economy.
“The New Economy is a government-sector-led initiative, whereas the 24-Hour Economy is a private-sector-led, incentive-based initiative,” he said.
Source: MyNewsGh.com
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