Businesses must stay optimistic despite economic challenges – Joe Jackson

 

 

Ghanaian businesses must remain optimistic and prepare for a brighter future despite ongoing economic uncertainties, says Mr. Joe Jackson, Chief Executive Officer of Dalex Finance. Mr. Jackson stressed the need for businesses to combine hope with practical preparation to weather the current fiscal storm.

He pointed out that while hope is essential, it must be matched with actionable steps. According to him, businesses should be ready to seize opportunities as they arise, even amidst unpredictable economic conditions. He also urged the private sector to adapt to potential shifts in government policies, with the 2025 national budget expected to bring more clarity.

Mr. Jackson described the current situation as volatile, advising a cautious approach to planning. “Looking beyond the first quarter of 2025 might be premature,” he stated, adding that businesses should focus on short-term adaptability while keeping an eye on long-term opportunities.

Resilience in the Informal Sector

Reflecting on lessons from 2024, Mr. Jackson highlighted the informal sector’s remarkable resilience. Despite challenges such as high inflation and limited access to credit, this sector thrived largely because of its independence from government interventions.

He noted that the informal sector’s ability to operate without heavy reliance on government support is a key factor in its success. For businesses in more regulated industries, however, he urged innovation and resourcefulness to navigate their dependency on public policies.

IMF Programme and Tax Implications

Mr. Jackson underscored the influence of the International Monetary Fund (IMF) on Ghana’s fiscal policies, particularly regarding recent tax increases designed to manage national debt. He pointed to the upcoming IMF programme review as a critical moment for reassessing Ghana’s tax strategy and exploring ways to ease the economic burden.

“It’s vital to maintain credibility with our international partners while seeking sustainable solutions to meet our financial obligations,” he stated.

Towards a 24-Hour Economy

Commenting on President-elect John Mahama’s vision to transition Ghana into a 24-hour economy, Mr. Jackson described the initiative as ambitious and transformative. He noted that while the policy has significant potential to create jobs and boost efficiency, its success depends on strategic groundwork, including legal reforms and implementation plans.

“The shift to a 24-hour economy won’t happen overnight,” he cautioned, stressing the importance of meticulous planning to ensure its sustainability.

Strategic Planning for the Future

In closing, Mr. Jackson encouraged businesses to remain patient and forward-thinking, focusing on resilience and innovation. He urged the private sector to draw inspiration from the informal sector’s success and prepare for emerging opportunities as government policies and IMF recommendations take shape.

While acknowledging the current fiscal challenges, Mr. Jackson emphasized that hope and strategic preparation are essential for navigating Ghana’s evolving economic landscape. His insights offered a roadmap for businesses seeking to thrive in uncertain times.