Audio By Carbonatix
The Member of Parliament for Hemang Lower Denkyira, Lawrence Agyinsam, has expressed concern over the failure of the 2025 budget to address geopolitical issues and global supply chain challenges.
The MP was particularly troubled by the budget’s silence on the ongoing geopolitical tensions and persistent global supply chain issues that continue to impact the world economy, of which Ghana is a part.
“Mr Speaker, I am saddened by the fact that I have heard economists and others talking about the 5.7% GDP growth we are projecting, and the fact that the world economy grew by 3.2%. Have they asked themselves what the underlying factors are? The underlying factors are two-pronged. It is the Russia-Ukraine war — which they don’t want to talk about — and it is also COVID-19. That is why Europe grew by just 1.7%, and China grew by only 1.6%,” he emphasised.
“Mr Speaker, there is something else that worries me. In the days of former President Rawlings, he consistently spoke about the unjust world economic order and external shocks. In this budget, what external shocks are being addressed?” the NPP MP queried.
“This budget does not take into consideration the geopolitics of the world. The world has become a geopolitical battlefield. Globalisation is now being reversed — there is no globalisation happening anymore because the world depended so heavily on China. Now, in the post-COVID era, every country is focusing on self-sufficiency. The new buzzwords are near-shoring, offshoring, and onshoring,” he further stated.
Mr Agyinsam also questioned why the budget failed to mention the African Continental Free Trade Area (AfCFTA), which he described as a crucial vehicle for member countries to leapfrog in trade and socio-economic development.
“Near-shoring means Europe is now looking to relocate its manufacturing companies around countries like Poland and Ireland. Yet, this budget did not even mention AfCFTA. AfCFTA is the single largest market after the World Trade Organization. This budget neither contemplated nor mentioned anything about AfCFTA — even as we seek to increase intra-African trade from about 13% to 18%, which would help us trade amongst ourselves,” he explained, using Europe’s manufacturing strategy as an example.
The MP for Hemang Lower Denkyira also touched on Ghana’s over-dependence on imported goods — a situation he said continues to adversely affect the Ghanaian currency, the Cedi.
“This budget talks about an export-driven agenda, yet when you read it, we have not even uncapped the Exim Levy to free up space for the Exim Bank to undertake the agribusiness activities. It would free up the space to enable the export promotion they have written in their own budget statement,” he stressed.
The MP made these remarks on the floor of Parliament on 19th March 2025 during the debate on the 2025 budget, which was presented by Dr Cassiel Ato Forson on behalf of President John Dramani Mahama.
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