5 NPP policies that got Ghanaians very angry in 2023

With just a year for President Nana Addo Dankwa Akufo-Addo and his New Patriotic Party (NPP) administration to finish its second term mandate, 2023 can be described as a challenging year for them.

President Nana Addo Dankwa Akufo-Addo and Vice President Dr Mahamudu Bawumia

With the soaring food prices, ever-increasing fuel prices, and the challenging unemployment issues; the NPP government had to make some hard decisions and policies to mitigate the economic challenges.

However, many of these policies caught the ire of some Ghanaians which has led to intense criticism of the government and the cancellation of others as well.

We, at Pulse Ghana, chronicled some of the policies that got the Akufo-Addo government some heat this year

Tariff increase: In 2023, the Public Utilities Regulatory Commission increased electricity and water tariffs for three quarters.

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In May, tariffs were raised for the average end-user tariff for electricity by 18.36% for the second quarter of 2023, adding on to an almost 30% increase in the first quarter. In February, the PURC announced an increment of 29.96 percent, while that of water was increased by 8.3 percent.

Electricity consumers paid an additional 4.22 percent on monthly bills from September 1, 2023. In its justification for the last adjustment, the regulator said it was meant to help utility companies recover the cost of electricity generation and supply while preventing the recurrence of erratic electricity supply (dumsor) with its adverse implications on jobs and livelihoods.

Energy Minister, Dr. Matthew Opoku Prempeh and officials from GRIDCO, ECG and MiDA inspect the ongoing project for the construction of a Bulk Supply Point (BSP) at Kasoa.

But in the case of the latest review, the PURC attributed the adjustment to four main reasons.

“These factors are the cedi/US dollar exchange rate, inflation, electricity generation mix, and the weighted average cost of natural gas (WACOG). Incorporation of the changes in these variables is crucial to maintain the real value cost of the supply of utility services,” the PURC said in a statement.

IMF Deal: After 10 months of discussions and negotiations, Ghana has finally received approval from the Executive Board of the International Monetary Fund (IMF) for a three-year budget support program aimed at restoring macroeconomic stability and debt sustainability in May 2023.

In a statement after the Executive Board approval, the IMF Managing Director, Kristalina Georgieva, said the approval “will enable an immediate disbursement to Ghana equivalent to SDR 451.4 million (about $600 million)”

The statement said the program would also help Ghana to overcome immediate policy and financing challenges, including through its catalytic effect in mobilizing external financing from development partners and providing a framework for the successful completion of the ongoing debt restructuring.

This deal culminated in numerous criticisms of the government due to an earlier stance of attributing failure to an IMF bailout.

The opposition National Democratic Congress (NDC) lashed out at the Nana Addo Dankwa Akufo-Addo administration for mismanaging the economy.

The Minority Leader Ato Forson in a statement, in September, argued that the Mahama administration left behind a robust economy.

“The Minister of Finance should not say anywhere again that the NDC administration left behind a derailed IMF program. Clearly, at the time we were leaving office, there was no monetary finance. For the first time in the history of Ghana, the government did not take money from the central bank even though the law allowed the then administration to take 5% of the previous year’s revenue from the central bank.”

“The people of Ghana would recall that because the Mahama administration left behind a robust economy, the Akufo-Addo/Bawumia government within the first three months of its assumption of office was able to borrow US$2.25 billion from Franklin Templeton”.

Ato Forson emphasized that the NDC government performed incredibly well compared to what Ghanaians are now witnessing under the Akufo-Addo government.

Bet Tax: The Ghana Revenue Authority, August, introduced a new tax that takes 10% from the winnings from lottery games, casinos and marketing promotional raffles.

The latest development follows the passage of the Income Tax (Amendment) Act, 2023 (Act 1094), which subjects all lottery wins to the withholding tax, to be deducted by the lottery operators and paid to the GRA.

In line with the law, the withholding tax deduction applies to winnings paid by private lotto operators of sports betting, casino operators, route operations (slot machines), marketing promotions, national lotto betting, remote interactive games operators, and other games of chance.

This triggered anger, especially from the youth and flagbearer of the National Democratic Congress (NDC) John Mahama has vowed to alter the tax should he win the 2024 elections.

Former President Mahama made this announcement during an engagement with the youth at Techiman Timber Market and the Techiman Magazine as part of his “Building Ghana Tour” in the Bono East region.

When questioned about the possibility of scrapping the tax during the engagement, Mahama did not provide a clear stance but assured the public that his government would review the tax. He emphasized that, if elected, his administration would assess various taxes imposed by the government, not just those on betting.

Lithium Deal: Ghana granted a lithium mining license to Atlantic Lithium Ltd as the West African nation positions itself to tap into the multibillion-dollar global industry.

The 15-year lease to Barari DV Ghana Ltd., a unit of the Sydney-based company, enables it to start constructing a lithium mine at a 42.6-kilometer site at Ewoyaa in the country’s Central Region, the Ministry of Lands and Natural Resources said in a statement on its website.

It comes after almost six years of exploration that has discovered high-grade lithium in commercial. However, this deal has drawn the fiercest opposition to any agreement entered into by the government in recent years.

A Member of the Council of State, Sam Okudzeto joined calls for the government to reconsider its lithium deal with Barari BV.

Sam Okudzato says the current deal is not the best for the country.

Speaking at an IEA roundtable discussion, Sam Okudzato said the government must listen to the masses.

“This lithium agreement is not in the best interest of Ghana. That’s my view. And if you all agree with me, let’s all make a statement in support of the IEA to say that we do not think that this agreement is in the interest of Ghana and that we have to relook this matter. I don’t want to condemn the MPs, but we will caution them and advise them to do what is right and what is in the interest of Ghana,” he added.

Okudzeto’s comments come amid growing public criticism of the deal, with many Ghanaians expressing concerns that it does not adequately address the country’s long-term interests.

Critics argue that the deal grants Barari BV overly generous terms, including a low royalty rate and a long exploration period.

Import Restrictions Bill: The Import Restrictions Bill, championed by the Minister of Trade and Industry, KT Hammond was finally abandoned by the government in December.

The government, on December 7, announced the suspension of the Export and Import Regulations 2023 Bill, halting its planned implementation after facing significant opposition.

It was intended to restrict the importation of 22 selected strategic goods into the country.

The leadership of the Joint Business Consultative Forum of Ghana expressed its excitement about the suspension of the Legislative Instrument (LI) seeking to restrict the importation of some products into the country.

In a statement issued on Thursday, December 14, 2023, the Joint Business Consultative Forum of Ghana expressed “our profound gratitude and excitement at the burden-relief for the suspension of the LI that sought to restrict the importation of some selected items.

“We cannot share our excitement without thanking the Speaker of Parliament, Hon Alban Bagbin, for his exceptional leadership role. Again, we thank the leadership of the National Democratic Congress in Parliament for their fortitude and resoluteness in holding the fort for the trading community in Ghana in our fight against the laying of the LI in Parliament.”

The Forum also thanked the Chairman and members of the Subsidiary Legislation Committee on Trade, as well as the Chairman and members of the Select Committee on Trade.

“We cannot thank the media enough for their role in amplifying and creating rich content for our advocacy,” it added.

Concerns focused on the lack of adequate consultation and the potential for increased corruption under the proposed regulations.

Source: PulseGhana