1. The document proposes short-term financing strategies to support Ghana's free senior high school education program, which is facing challenges from lack of infrastructure, teachers, and resources. 2. It suggests increasing property tax collection, capturing taxes from the large informal sector, and allocating a portion of oil revenues to a new Ghana Free Secondary Education Fund. 3. Additional proposals include adjusting the value-added tax to allocate more funds to education and obtaining financing from multilateral development banks through grants, equity, debt, and partnerships. Strict implementation is needed for these strategies to successfully support Ghana's free secondary school program.

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ASSIGNMENT
Dr. Emmanuel Teitey-Ghana
World Bank Group-Open Learning Campus
Unlocking Investment and Finance in Emerging Markets and Developing Economies
(EMDEs)
Final Project
Topic: Ghana Short-Term Financing Strategy for Additional Sources of Finance for
Development.
June,2019

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Short-Term Financing Strategy for the Free Senior High School Education Program
Education at the secondary high school (SHS) level in now free in Ghana. President Nana
Akufo-Addo announced the launch of the program Tuesday, calling it a necessary investment in
the nation`s future workforce. The president expressed the belief that investing in the human
resource of the nation was the best investment for the future that would propel the development of
the nation. However, the program is engulfed with lack of infrastructure facilities, teaching and
learning material, textbooks, equipment, furniture, qualified teachers, capacity building for
teachers, logistic and resources and above all finance for feeding students and payment of teachers.
Projections
The project is expected to cost GH¢480million on more than 400,000 Basic Education
Certificate Examination (BECE) candidates who qualified for admissions in the 2017/2018
academic year. The estimated cost for five years will (GH¢480million*5) GH¢2,400million.
Looking at total population of 30.10million people with per capital income of GH¢0.004 per
annum and managing a national debt of GH¢250billion, the free secondary high school (SHS) will
be very difficult to pursue.
Short-term Financing Strategy Objective
The main objective of this financing strategy is based on vision achievement which means
that any fund raise under these strategies should be channel or use for the purpose upon which it
was raise and not diverted to any other projects.
Available Investment Opportunities
The investment opportunity already available to Ghana is the exportation of its raw gold
without processing or changing it nature a little bite to earn foreign exchange for the country. In
the same way Ghana cocoa, timber and minerals resources also exported in their raw nature without
change in value and nature and this trend has continue for long without any possible result or
therapy. The Public-Private partnership participation so far in the economy has not yielded any
result.
Short-Term Financing Strategy
The short-term financing strategy will base on improvement and readdressing five main
key important issues:
1. Property Tax: In developing country like Ghana the collection of property tax has left
over to the local authorities or local government. The local government was also not regulating it
well, again, when is assume by central government and properly address will earn enough revenue
to finance the free secondary education. This property tax when raise 50% should be paid into
special account of the African Development bank towards financing free SHS.
2. Income Tax: In Ghana it’s only those working in the formal sector that paid income tax
properly to the governance. The loop hole in the system should be address, those in the informal
sector do not pay anything on their production and services rendering in the country. There is the
need to network all those who work in the informal sector so that the quantum of income earns by
each individual can be capture. When their income is captured then the government will be able to

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know how to tax them. A percentage of this tax can also be channel to support free secondary
education. This could also be paid into special account in African Development Bank.
3. Ghana Free Secondary Education Fund (GFSEF): The Ghana Stabilization Fund (GSF)
and Ghana Heritage Fund (GHF) both receive portion of Ghana oil revenue each year, which is
supposed to cushion the country when there is an unanticipated shortfall in petroleum revenue and
GHF serve as an endowment for future generations. I believed portion of the petroleum revenue
should be allocated to Ghana Free Secondary Education Fund each year to support financing and
infrastructure facilities of free SHS. The revenue allocated to the GFSEF should be deposited in a
special account.
4. Free education levies: Value-added tax (VAT): know in some countries as a goods and
services tax (GST), is a type of tax that is assessed incrementally, based on the increase in value
of a product or service at each stage of production or distribution. The Ghanaian vat of 17.5% has
been extensively been applied, however, there is more room for adjustment to finance other areas
like the Ghana free SHS. The actual vat is 12.5%, NHIL holds 2.5%, and Ghana Education Trust
Fund (GET Fund). Proposing another allocation of 2.5% to financing the free SHS will go along
to support the Ghanaian government for free SHS program.
5. Multilateral Development Bank: The international financing programs or agencies like
International Development Association(IDA),Official Development Assistance(IDA), African
Development Bank(ADB) and International Development Bank(IDB), cannot be left out in this
financing programmes, their assistance or support in the form of grant, assistance, equity, debt,
joint venture can go along to promote Ghana`s free SHS, hence, encouraging Ghana to achieve
Sustainable Development Goal(SDG) by the year 2030.
Conclusion:
The above short-term financing strategies could only promote and establish Ghana`s free
secondary school education development when strict measures are taken for its initiation and
implementation.