Accra, Ghana – In a bold and potentially contentious move, John Awuah, CEO of the Ghana Association of Banks, has called on the Minister of Finance to consider scrapping certain flagship programs, including the Free First Year Tertiary Education Scheme, Trainee Nurses Allowance, and Teacher Trainee Allowance. According to Awuah, these measures would free up significant resources to fuel industrial growth and create jobs for the country’s teeming unemployed graduates.
In a detailed proposal, Awuah suggested that the funds saved from these programs could be redirected towards providing concessionary loans to targeted import substitution companies, enabling them to scale their operations and create more jobs. He proposed that the government identify a maximum of 10 companies and provide each with at least GH¢150 million in concessionary loans at 5% interest.
The potential savings from the scrapped programs are substantial, with Awuah estimating that the country could save GH¢1.7 billion from just four programs. He believes that this amount could be used to drive industrial growth, create jobs, and reduce the country’s dependence on imported goods.
The Proposed Cuts
– Scrap the Free First Year Tertiary Education Scheme: GH¢450 million saved per year
– Scrap Trainee Nurses Allowance: GH¢480 million saved per year
– Scrap Teacher Trainee Allowance: GH¢210 million saved per year
– Review the Free SHS policy: potential savings of GH¢600 million per year
A New Path Forward
Awuah’s proposal is centered on the idea that Ghana needs to take bold steps to stimulate economic growth and create jobs. By providing targeted support to industries with growth potential, the country can reduce its dependence on imported goods, stabilize its currency, and grow its tax base.
As the Minister of Finance finalizes work on the 2026 National Budget, Awuah’s call for bold decision-making is timely. Will the government take the bitter bullet and make the necessary cuts to propel Ghana’s economic growth? Only time will tell.