We'll Finance Ghc100 billion Ghana CARES Program Through FDIs, PPPs –Gov't

Government says it is looking forward to funding its recently announced GHS100 billion Ghana CARES programme and other new initiatives through Foreign Direct Investments (FDIs) and Public-Private Partnerships.

The efforts are aimed at supporting businesses affected by the impact of COVID-19.

The Finance Minister, Ken Ofori Atta in presenting the 2020 Mid-year budget review last week, announced the setting up of the Ghana Coronavirus Alleviation Revitalization of Enterprises Support (CARES) Program over a three and a half year period to support local businesses.

Speaking on Citi TV's Point of View, Mr. Ofori-Atta said,“I think we are looking more at PPPs and FDIs directly into that. We certainly will then determine each of these transactions, whether government will have to do something with tax waivers or others” he said.

The Finance Minister says government is seeking to introduce a policy that will ensure that funds are first sourced locally for domestic projects before external sources are considered.

“Government now in cabinet has agreed on a policy of local sourcing as a first act before people look outside. But if you look at agenda 111, previously 88, what the president has said and cabinet is agreeing is that all the construction will be done by local contractors” he assured.

Among other things, the Minister announced new measures such as a reduction in the Communication Service tax from 9 to 6 percent and the extension of free water supply to Ghanaians for the next three months and free electricity supply to lifeline consumers for the rest of the year.

There is also the establishment of a GH¢2 billion Guarantee Facility to support all sectors of business and job retention, establishment of an Unemployment Insurance Scheme, the creation of a GH¢100 Million Fund for Labour and Faith-based organizations for retraining and skills development, and an increase the CapBuss Programme by GH¢150 million to, among other things facilitate credit of GH¢50 million to support the Creative Arts, the Media and the Conference of Independent Universities.

---citinewsroom