IMF programme will restore macroeconomic stability – KPMG 2023 Pre Budget Survey

November 21, 2022 / Comments (0)

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Sixty nine percent of industry leaders are confident the International Monetary Fund programme will help restore macroeconomic stability, a survey conducted by accounting and auditing firm, KPMG, on the 2023 Budget has revealed.

Some respondents however suggested that the programme should emphasise debt sustainability, while also promoting inclusive and long-term growth.

Majority of the business leaders also indicated that economic factors such as inflation, cedi depreciation, slow growth rate, and rising interest rates have had a significant impact on their operations.

Again, the majority of respondents indicated that the government should reconsider some fiscal measures, such as adjustments to the electronic transaction levy, petroleum levies and import duty in order to alleviate economic hardship.

On the top three policy initiatives, a growing number of business leaders believe that the 2023 budget should prioritise policies that promote local business and export, reduce wasteful spending and increase tax revenue mobilisation.

52.9% of business leaders affirm illegal mining has affected their operations

But on illegal mining, 52.9% of the respondents affirmed that illegal mining have affected their business activities.

Among those affected by ‘galamsey’, water supply was deemed as the main area impacted by the activities of illegal mining.

Businesses unhappy with government fight against correuption

Regarding corruption, businesses are unsatisfied with the performance of government on the fight against corruption.

Majority of them expressed dissatisfaction with the state procurement policy aimed at reducing corruption.

On the impact of economic indicators on Key Performance Indicators of businesses, 64.3% of businesses indicated that the development in economy have affected their cost.

Also, 27.1% said development in economic indicators have affected their revenue.

For challenges that businesses experienced in 2022, 49% said access to capital was the biggest challenges that businesses experienced this year.

Overall, 100 leading businesses in Ghana were surveyed, but responses were obtained from 70 of them across 10 sectors.

The questions for the survey were structured to measure their perceptions of government economic policies and Environmental, Social and Governance (ESG) related issues impact on business operations.


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