Electricity believe tank, Africa Centre for Power Coverage (ACEP), has joined phone calls for the Finance Minister to shelve a plan to draw down on the Heritage Fund to mitigate the consequences of the coronavirus on the economic climate.
In an investigation on the Minister’s latest assertion to Parliament on the financial effects of the Covid-19 pandemic on Ghana, ACEP acknowledged that although the financial state is stressed due to the pandemic, the federal government has other resources to fall on.
“The Heritage fund will not solve Ghana’s issues if invested now. The discipline to save for the foreseeable future is a hard one particular but should be encouraged and sustained.
“Spending the heritage fund currently is akin to telling citizens to go for their pension since they are confronted with problems in a Covid-19 planet. The potential of oil is more unsure today than it has ever been. The fund is envisioned to give support for the price range when Ghana is no extended acquiring revenues from oil and that is an crucial foresight that should really not be crucified these days,” ACEP mentioned in the assessment.
Finance Minister, Ken Ofori-Atta, has announced his intention to amend the Petroleum Profits Management Act (PRMA), the law governing a raft of procedures in the petroleum sector, such as the Ghana Heritage Fund (GHF), to empower him draw from the Fund.
The Ghana Heritage Fund, a generation of the PRMA, provides an endowment to guidance the growth of potential generations when the petroleum reserves have been depleted. It is at this time believed to be truly worth $591.1 million.
Since the intention to withdraw from the Fund was announced in Parliament, the Minority and civil culture organisations have kicked towards it.
Read through ACEP’s full evaluation down below.