Strong political will required to change Ghana's current economic status - Economist

The President of the African Investment Group (AIG), Dr Sam Ankrah, says strong political will is required to get the country out of its current economic challenges.

According to the renowned economist, that political will, is however yet to be exhibited by the managers of the economy.

Sharing his view on whether the economy can be rebooted despite the current challenges, the global business strategist in a statement said “Yes, but will require strong political will which we haven’t been seeing.

“Manifesto policies will have to be reviewed critically, for it’s viability and sustainability.

Government payroll and other expenditures will need to be slashed considerably.

“There will be a need to do a wholesale divestment of non core activity. If it has nothing to do with key infrastructure or human capital development, we should consider ditching it,” he said.

He also argued the falling Cedi will stabilise but only for a short while.

“Yes, but as a short term measure. Stabilization is achieved through pumping USD into the system. Eventually the government will run out of this fresh funding.

In the long term the Cedi will continue to try to find its real market level.

Given that its value is related to what it buys, mostly imports paid for in dollars, it will always be subject to market cash conditions surrounding the availability of the dollar.

“Predominantly this has a depressive effect on the value of Cedi. There are no policies to enforce patronage of Ghanaian produced goods so we can expect the Cedi to continue to lose value in the medium to the long term”.

In March Finance Minister Ken Ofori-Atta announced government will reduce purchase of vehicles by the public sector by 50% as part of measures to resolve the current economic challenges in the country.

Also, Ministers and heads of state institutions will also suffer 30% pay cut as well as 50% cut in fuel coupons until further notice, the Finance Minister announced.