GNCCI Advocates for Public-Private Partnerships Over Borrowing to Boost Ghana’s Economy

Introduction: A Call for Fiscal Innovation

The Ghana National Chamber of Commerce and Industry (GNCCI) has urged the government to prioritize public-private partnerships (PPPs) over traditional borrowing to stimulate economic growth. This recommendation, highlighted at the 6th National Dialogue Series in Accra, emphasizes fiscal discipline, macroeconomic stability, and sustainable debt management as Ghana prepares for its 2026 budget.

Analysis: Breaking Down the GNCCI’s Recommendations

GNCCI’s Position on Fiscal Responsibility

GNCCI President Stephane Miezan stressed that PPPs with domestic investors could reduce reliance on borrowing, which risks returning Ghana to debt distress. He cautioned against premature re-entry into domestic bond markets, stating, “We believe it’s too early to begin accruing debt.”

The Three Pillars of Ghana’s 2026 Budget

The proposed budget focuses on:

1. Macroeconomic consolidation
2. Expanded growth and job creation
3. Enhanced social safety nets

Miezan emphasized that effective implementation could unlock opportunities for businesses under frameworks like the African Continental Free Trade Area (AfCFTA).

Expert Perspectives on Economic Projections

Economist Professor Patrick Opoku Asuming projected a more business-friendly environment in 2026, citing VAT reforms and fiscal discipline. Deloitte Ghana’s Yaw Appiah Lartey described the budget as a “planned victory” but warned against funding infrastructure through high-cost borrowing.

Summary: Key Takeaways

The GNCCI’s advocacy centers on PPPs as a sustainable alternative to debt-driven growth. Stakeholders agree that while the 2026 budget shows promise, its success hinges on avoiding past pitfalls of policy non-implementation and excessive borrowing.

Key Points: At a Glance

• PPPs can reduce debt dependency and spur private sector growth.
• The 2026 budget prioritizes fiscal consolidation and job creation.
• Experts caution against high-cost borrowing for infrastructure projects.

Practical Advice for Policymakers

• Develop clear PPP frameworks to attract domestic investors.
• Strengthen oversight to ensure budget implementation aligns with macroeconomic goals.
• Leverage AfCFTA to expand market access for Ghanaian businesses.

Points of Caution

• Avoid premature borrowing that could destabilize debt-to-GDP ratios.
• Ensure infrastructure investments are tied to measurable economic returns.
• Monitor inflation and currency risks when engaging PPP partners.

Comparison: PPPs vs. Traditional Borrowing

Legal Implications

PPPs in Ghana are governed by the Public-Private Partnership Act (Act 1039 of 2020), which mandates transparency in procurement and risk allocation. Policymakers must ensure compliance to avoid legal disputes that could delay projects.

Conclusion: A Path Forward

Ghana’s economic resilience depends on innovative financing models like PPPs. By balancing growth-oriented policies with fiscal prudence, the government can achieve sustainable development without exacerbating debt vulnerabilities.

FAQ: Addressing Common Questions

What are public-private partnerships (PPPs)?

PPPs are collaborative agreements between governments and private entities to fund, build, and operate infrastructure or services.

Why does GNCCI oppose borrowing?

Excessive borrowing risks debt distress, as seen in Ghana’s recent history with IMF bailouts.

How can PPPs benefit Ghana’s economy?

They attract private investment, reduce public debt, and improve service delivery through shared expertise.