As the nation gears up for the much anticipated National Economic Dialogue on March 3, financial analyst, Dr Richmond Atuahene, is calling for a focused discussion on three critical areas which are debt management, strategic indigenisation and agriculture.
He warned that previous economic dialogues have not yielded positive results and it's essential that this upcoming dialogue produces practical solutions to reduce debt, boost local businesses and enhance food security.
“The dialogue should also prioritise reducing the rate of debt accumulation; Ghana's debt woes are not new and the country is still seeking more assistance from the IMF for the umpteenth time, the most recent being a $3 billion bailout in 2022 and I believe it will continue unless something drastic is done,” he told the Graphic Business in an interview in Accra.
Unsustainable debt levels
The country’s debt levels currently stand at 72.2% of GDP which poses a significant threat to the country's economic stability.
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This, Dr Richmond Atuahene has sounded the alarm that the upcoming discussions must centre on how to reposition the economy to meet debt obligations ahead.
“Our incessant appetite for borrowing must cease and we must discover and apply ingenious ways of making the economy stable for a very long time,” he stated.
Indigenisation
He stressed that Ghana's critical sectors such as banking, mining and oil & gas should be indigenised to reduce foreign dominance and the associated risks that come with such dominance. He also suggested that Ghana can learn from Nigeria's approach, where strategic sectors are largely controlled by indigenes.
“Today, we are talking about Dangote Oil Refinery and Glo from Mike Adenuga and other Nigerian Industrialists, we must empower our local entrepreneurs and business people,” he stated.
Agriculture
Dr Atuahene emphasises the need to transform the agricultural sector to curb food inflation and reduce reliance on imports. He proposes supporting key sectors such as cocoa, maize, poultry and rice production. “Ghana's agricultural sector has the potential to drive economic growth but it requires strategic investment and support,” he stated.
The National Economic Dialogue, themed "Resetting Ghana: Building the Economy We Want Together," aims to bring experts together to brainstorm solutions for Ghana's economic challenges.
As Ghana struggles to recover from its economic crisis, the National Economic Dialogue must produce tangible results as the country's economic stability depends on it.
Country’s current economic challenges
Ghana is currently facing several economic challenges. The country's debt levels have surged, reaching 72.2% of GDP, making it difficult to meet debt obligations. This has led to a debt restructuring programme with the IMF.
Compounded on this, it is experiencing high inflation rates, which peaked at 54.1% in December 2022 but has simmered down to 23.8 per cent. This has reduced the purchasing power of citizens and increased the cost of living.
The cedi has depreciated significantly, making imports more expensive and contributing to inflation.