A senior lecturer at the University of Ghana Business School (UGBS) has accused the ruling New Patriotic Party (NPP) of hijacking the Ghanaian economy since assuming power in 2017.
According to Professor Lord Mensah, this is seriously impeding the growth of businesses in the country and the improvement of the living conditions of Ghanaians.
Government Dominates Economy
“For the past seven years, this economy has been hijacked by the government because the government has been using Treasury bill instruments to run the show. Businesses are not running the show in the country as expected so for me you cannot continue to have an economy that has been hijacked by the government and you want the living conditions of the people to be better,” Professor Lord Mensah said in an interview with Starr FM.
He said he hopes that Ghana’s program with the International Monetary Fund will address the issue of hijacking by the government for businesses to have the chance to grow to employ more people.
“So, I think that we need to do more and I am hoping that with this IMF program that we have we are going to see that kind of trend where businesses and individuals expand and employ,” Prof. Mensah added.
Debt Treatment Agreement Reached
Meanwhile, the government of Ghana has reached an agreement with bilateral creditors for debt treatment.
The latest agreement with the Official Creditors paves the way for IMF Executive Board approval of the first review of the Fund-supported program, allowing for the next tranche of IMF financing of US$600 million to be disbursed.
The IMF Board Approval should also trigger the World Bank Board consideration of US$300 million in Development Policy Operation (DPO) financing. In addition, the World Bank is expected to support the Ghana Financial Stability Fund with US$250 million to help address the impact of the Domestic Debt Exchange Programme (DDEP) on the financial sector.
In a release from Ghana’s Ministry of Finance, it said these disbursements are key for Ghana’s economic recovery and ambitious reform agenda.
The government has been facing criticism from various quarters for its handling of the economy, especially amid the global pandemic that has affected many sectors.
The opposition National Democratic Congress (NDC) has accused the NPP of mismanaging the economy and plunging the country into debt and hardship.
However, the government has defended its record and said it has implemented several policies and programs to cushion the effects of the crisis and stimulate growth.
The government has also expressed confidence that the economy will bounce back strongly in 2024, with a projected growth rate of 5.4 percent.
The IMF and the World Bank have also praised Ghana’s economic performance and resilience in the face of the challenges posed by the pandemic.
As Ghana prepares for its next general elections in 2024, the state of the economy will likely be a major factor in the voters’ decision.
Source: Modern Ghana
