The Ghana Union of Traders’ Associations (GUTA) has urged the government to maintain strict fiscal discipline and resist excessive spending as the country transitions out of the International Monetary Fund (IMF) programme.
Dr. Joseph Obeng, President of GUTA, in an interview commended the government for its efforts in stabilising the economy, but warned that the real test lies in sustaining the current gains without external supervision.
“We welcome the government’s efforts to stabilise the economy, inflation has fallen, interest rates are easing, and the cedi has become relatively stable,” Dr. Obeng said. “But the next step is discipline. Every measure that has delivered these gains must be maintained so that businesses can thrive. Government must now prove that it can sustain progress even without IMF oversight.”
He attributed the recent improvements in fiscal and monetary management to the ongoing US$3 billion IMF-supported programme, which has brought about macroeconomic stability.
However, he cautioned against any return to uncontrolled spending or policy slippages.
“The discipline the IMF introduced into our system should not vanish after their exit. We must continue operating within budget limits, spend prudently, and ensure revenues are used efficiently. The momentum must continue so that economic progress benefits all Ghanaians,” he stressed.
On taxation, the GUTA President urged the government to reform and simplify the Value Added Tax (VAT) system to ease the burden on small and medium enterprises (SMEs), which he described as the backbone of Ghana’s economy.
“The VAT must be affordable, transparent, and simple enough to encourage compliance,” he said. “A complex tax system discourages honesty and hurts small businesses. We applaud the introduction of the modified tax system, but there must be clarity on who qualifies under it to avoid confusion or unfair treatment.”
Dr. Obeng noted that the private sector expects no new taxes in the 2026 budget. Instead, he called for a realignment of existing taxes to make them more business-friendly and supportive of local production.
He also highlighted foreign exchange repatriation as a major challenge for local businesses, urging the government to implement measures to reduce the outflow of funds by multinational firms.
“We are not against foreign investors, but there must be enforcement of laws to ensure fair competition,” he said. “Large foreign retail chains, especially some Asian-owned businesses, dominate the market, and that makes it hard for local traders to survive. Ghanaian businesses need stronger support to compete and grow.”
Dr. Obeng reaffirmed GUTA’s commitment to working with the government to deepen fiscal stability, strengthen the private sector, and ensure Ghana’s economic growth remains sustainable beyond the IMF era.
