Resetting economy: Dr Yamson calls for fresh start

Business Executive and Chairman of the National Economic Dialogue Planning Committee, Dr Ishmael Yamson, has said the time has come to make a fresh start for Ghana's economy by decisively breaking away from decades of unfulfilled potential. 

In an address at the National Economic Dialogue (NED) yesterday, the statesman said the country’s economic journey through 68 years of independence had not been spectacular.

The National Economic Dialogue, which was held on the theme: “Resetting Ghana: Building the Economy We Want Together”, brought together government officials, parliamentarians, diplomats, traditional and religious leaders, civil society organisations, the judiciary and various stakeholders to proffer solutions to take the country out of the doldrums by first finding expression in the upcoming national budget.

With the Finance Minister set to present a new budget next week, it is expected that it would incorporate recommendations from this consultative process as part of the government's economic reset agenda.

The dialogue is also part of the 120-day social contract the President and his government have made with Ghanaians to address pressing challenges and build consensus on necessary reforms.

Drawing inspiration from the country's founder father, Dr Yamson recalled Kwame Nkrumah's vision of "a strong and progressive society in which no one will have any anxiety about the basic needs of life”.

He characterised Dr Nkrumah's brief leadership as the "Golden Age of Ghana", noting that the period saw the establishment of nearly 400 vertically integrated agricultural and manufacturing ventures, with more than 40 per cent of them located in rural areas.

The economist painted a stark contrast between Nkrumah's era and present-day Ghana, which he described as remaining under economic domination and servitude, and a poor, highly and unsustainably indebted country.

He pointed to widespread youth unemployment, collapsed manufacturing and heavy dependence on food imports as evidence of the nation's economic regression.

Dr Yamson, a serial chairman of boards and Unilever’s longest-serving executive chairman, said the root cause of the mess was a political mindset motivated by the power to loot state coffers for personal gain and pervasive institutionalised corruption among many challenges facing the nation.

He lamented the creation of a generation of hustlers – young Ghanaians who had lost hope in their political leaders and sought to emigrate.

“This is definitely not the Ghana our forefathers fought for,” Dr Yamson said, calling on President Mahama to lead the charge in resetting the nation's destiny.

“Everywhere in the world that economic transformation has taken place, only one individual has led the charge,” he said, expressing confidence in the President's wisdom to undertake the monumental task.

While warning that the journey to reset Ghana was not going to be easy and would be rough and full of risks and frustrations, Dr Yamson, who is currently the Chairman of MTN Ghana Board, assured the President that many Ghanaians stood ready to support his vision.

"Like supporters of a well-known football club, 'You will never walk alone’,” he stated, referencing the anthem of the English Premiership football club, Liverpool.

Economic crisis

The Minister of Finance, Dr Cassiel Ato Forson, said the country’s economic crisis was not over, calling for significant sacrifice from all to address the financial challenges.

He acknowledged the suffering of Ghanaians who had endured severe currency depreciation to hyperinflation, from haircuts to steep tax increases, from rising fuel and electricity prices to soaring interest rates during the ongoing economic crisis.

He referenced President Mahama's commitment to lead by example through government restructuring, pointing to the reduction in the number of ministers from 123 to 60 and implementing budget cuts for the Office of the President, including a prohibition on first-class travel for government officials.

Dr Forson described the measures as merely the initial steps in the government’s ongoing journey towards fiscal discipline and good governance.

The Finance Minister thanked the Organising Committee led by Dr Yamson for arranging the dialogue, which he said was an opportunity to reflect on the country’s economic reality, address pressing challenges and chart a course towards a more prosperous future.

He said the dialogue sessions had been carefully designed to confront the pressing economic challenges through panel discussions, workshops and breakout sessions aimed at developing policy initiatives to drive structural reforms.

Economic reforms

For his part, the President of the Africa Centre for Economic Transformation (ACET), Dr K. Y. Amoako, said the country risked seeking an 18th bailout from the International Monetary Fund (IMF) if economic reforms were not implemented swiftly.

"As we approach the conclusion of our 17th IMF bailout early next year, the fundamental question remains: Will this be the last, or are we simply paving the way for an 18th or 19th?" he asked.

The ACET president, who also headed the United Nations (UN’s) Economic Commission for Africa (ECA), pointed out a troubling financial reality: the $1.7 billion Ghana was receiving from international financial institutions this year was less than what the country spent on energy subsidies alone, underscoring structural imbalances that undermine a long-term economic stability.

Dr Amoako proposed three key measures to break the cycle, namely establishing a Ghana Development Finance Platform to coordinate aid and investment, securing long-term financing commitments from major external partners, and strengthening domestic revenue mobilisation to curb financial leakages and illicit outflows.

Beyond immediate financial concerns, Dr Amoako warned of long-term economic stagnation, noting that Ghana had remained in the lower-middle-income bracket since the 1990s, alongside 107 other nations that had failed to progress to high-income status despite decades of development efforts.

The economist revealed that Ghana's Gross National Income per capita remained below $400 for nearly four decades before rising to the current $2,400, suggesting that without structured transformation, the country could remain at this level indefinitely.

He identified political division as a major obstacle to economic progress, warning that frequent changes in government between the two major parties — the National Democratic Congress (NDC) and the New Patriotic Party (NPP) — have disrupted policy continuity, resulting in abandoned projects, wasted resources and stalled growth despite Ghana's reputation as a model of democracy in Africa.

"Our peaceful transitions of power are commendable, but they are not anchored in a long-term, widely shared vision for economic progress," he stated, urging both the ruling government and the opposition to prioritise the national interest above party considerations.