In the upcoming 2023 mid-year budget, the finance minister plans to impose a 40% restriction on the importation of rice and chicken.
The details of this restriction are expected to be outlined when the finance minister presents the budget to parliament on July 25, 2023. Alongside this measure, the budget is likely to introduce various new taxes and levies.
However, several trade unions have voiced their concerns, urging the government not to introduce additional taxes, as citizens are already burdened by existing ones.
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During the presentation of the 2023 budget statement and economic policy to parliament on November 24, 2022, the Minister of Finance had previously announced the government’s intention to support the private sector in targeting specific products for import substitution.
The goal is to replace up to approximately 45% of the country’s annual imports, as this would alleviate pressure on the cedi, the national currency.
“Mr. Speaker, as I have already indicated, Ghana’s heavy dependence on imports places tremendous pressure on the Cedi, creating an unfavourable balance of payments position. On average, Ghana’s import bill exceeds US$10 billion annually and is accounted for by a diverse range of items that include iron, steel, aluminium, sugar, rice, fish, poultry, palm oil, cement, fertilizers, pharmaceuticals, Toilet roll, toothpick, fruit juices, etc.,” he said.
Ofori-Atta said the government through partnerships with the private sector will ensure the establishment of various manufacturing plants to produce such products locally.
“We currently have the capacity as a country to locally produce items that account for about 45 percent of the value of our annual imports. These include rice, fish, sugar, poultry, cement, pharmaceuticals, jute bags, computers, etc. To this end, Government will target these products for import substitution by supporting the private sector, through partnerships with existing and prospective businesses to expand, rehabilitate and establish manufacturing plants targeted at producing these selected items,” the minister said.
