The economic recovery programme in Ghana, which has been hampered by the recent economic crises, is expected to begin in 2021. A significant amount of foreign direct investment (FDI) is required for the country's economic development and the private sector is expected to benefit a lot from the programme. However, the main challenge lies in boosting the domestic non-oil economy, which is hampered by weak public sector and inefficient distribution systems.
The Government of Ghana has been making efforts to restructure the economy so that it can contribute more to the global economic stability. The key areas of focus include creating more jobs and improving productivity, revamping the distribution systems and raising the purchasing capacity of the people, upgrading the roads, improving the healthcare, educating the population, diversifying the workforce, and finally improving the accountability of public servants. As a result, the future outlook for Ghana's economy looks bright with a lot of scope for improvement. If the right policies and programmes are implemented, non-oil sectors will also gain from the increased investment, employment opportunities, and better quality of life.
The non-oil private sector is growing fast and employs a large chunk of the Ghanaian workforce. Some of the key industries that are currently focusing on increasing their production capacity include cement, wood pulp, paper, petroleum, metal alloys, and rubber. These sectors require a lot of imported capital, infrastructure, and skilled labour to operate efficiently. Given the deteriorating fiscal situation in the west, many of these industries have either closed or downsized. Given the poor fiscal policy and high unemployment rates in the country, private capital is not readily available to the small and medium scale companies which form the backbone of the Ghana economy.
Given the importance of a sound non-oil economic recovery programme in Ghana, the Government of Ghana is taking a number of steps to revitalise the economy. For starters, it is aggressively encouraging home manufacturing and encouraging greater use of efficient FDI. The main thrust of the programme is to improve the productivity level and reduce the gap between rural and urban income levels. The rural workforce has suffered largely because of the damage and scarcity of basic inputs.
One of the key factors contributing to the worsening economic situation in Ghana is the inefficient handling of the natural resources. For instance, the natural resources are depleting at an alarming rate in many parts of the country, leading to poverty and hunger. As a result, the agricultural output has declined considerably, and the per capita income has declined steeply. The agricultural growth is highly dependent on the successful implementation of a sound economic recovery programme in Ghana. Given the recent increase in the price of agricultural produce, this aspect can not be ignored any longer.
While the overall economic recovery programme in Ghana has benefitted most of the country's residents, the poor economic conditions of the agricultural sector have led to widespread desertion by farmers. In response to this, the government has taken certain . . . . . . vital steps to ensure that these people are provided with better agricultural support. The strategy adopted by the Government of Ghana to address this issue is two-pronged. Firstly, it has ensured that the fertilisers and pesticides used on the farms are of high quality and meet international standards. Secondly, it has also offered financial assistance to these farmers through the Empowered Rural Employment (ERE) scheme.