Despite moves by government to get bailed out by the International Monetary Fund (IMF), experts in economics have advised government to correct all systemic errors for the economy to regain its strength.
Excessive government expenditure and foreign investments made by government appointees have been blamed as some of the reasons for the poor performance of the country’s currency.
In an interview with Chief Executive Officer of Eclipse Microfinance, Mr Kafui Amegah, he said although the IMF bailout is in the right direction, the timing also has to be looked at.
He explained that industries are still struggling to find their feet due to the current power crisis and the bailout will only make the books of government look clean.
“What Ghana is facing now is systemic problem; the ‘dumsor’ is killing industries and if that is not fixed the bailout won’t be of any use to us,” he said.
He added that government is not spending in the country and most revenues are geared towards the payment of judgement debt, which is just a one-way flow of income.
Mr Amegah noted that one of the ways to heal the economy is getting the Bank of Ghana to assist the financial institutions by bailing them out, and that can also help the cedi to perform well on the market.
He said the IMF bailout won’t solve Ghana’s problems wholly, and that the country needs to rethink and have a strategic plan for her growth and development.
He advised that government should invest in the construction sector since it is one of the surest ways to have a lot of people employed and that is also where government expenditure can hit the system.
He said when roads are constructed, especially in the rural and farming communities, it can get farm produce to the cities and that will mean lots of buying and selling will go on.
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