Running Mate of the opposition New Patriotic Party, Dr. Mahamudu Bawumia has a curious partner in the International Monetary Fund (IMF), as the latter has virtually vindicated his recent submission on the state of the Ghanaian economy when he delivered a lecture last month at the Ferdinand Ayim Memorial Lectures.
In an astonishing move, the IMF has taken the government to task and chastised it on the current state of the Economy. At a meeting with President John Evans Atta Mills and top managers of the Economy including the Finance Minister on Tuesday, an IMF team on a working visit to Ghana expressed concerns at the fast depreciating cedi and also the high and rising cost of living.
Led by Christina Daseking, the IMF team tasked the government to be swift in arresting the situation which was agreed to by the President and his managers of the Economy.
It would be recalled that on 2nd May, 2012, Dr. Bawumia delivered the 5th Ferdinand Ayim Memorial Lectures on the topic “State of the Economy” during which he exposed the weak fundamentals that were supporting the economy presently.
Dr. Bawumia among others pointed out the high and rising cost of living which he said did not support the official statistics being churned out by the government and government propagandists.
He also mentioned the fast depreciating cedi and noted that it was a sign of the weak fundamentals supporting the economy. He stated “The lesson from history for governments is that you cannot manage the economy with propaganda. In fact, you can engage in all the propaganda you want but if the macroeconomic fundamentals are weak, the exchange rate will expose you.”
Unfortunately and most despicably, the NDC and its communicators latched onto Dr. Bawumia after the lecture and run him down without ever challenging the facts he put out. Dr. Bawumia was variously named and described as someone who did not know what he was talking about.
Interestingly, the managers of the economy and the President did not challenge the IMF when they made these startling observations.
“What one can say is that Dr. Bawumia’s credibility has been done a whole lot of good by the IMF’s observations and once again, the government’s much propounded economic achievements have been left in ruins”, a political watcher told The New Crusading Guide.
In other development and as a consequence of the increasing depreciation of the cedi, the largest Cement Producer in the country, GHACEM has increased its ex-factory price of its products. The 50 kilogramme bag of cement, which used to sell at an ex-factory price of GH¢13.34 at both the Tema and Takoradi plants of the company, will now be sold for GH¢15.295.
The Ghacem Super Rapid Bulk, which was sold at an ex-factory price of GH¢252 per tonne, is now going for GH¢289.800, while the 50-kilogramme Ghacem Extra which used to sell at GH¢14.200 is now GH¢16.330.
The Ghacem Extra Bulk, which used to be sold at GH¢270, is now being sold at GH¢310.
Managers of GHACEM have indicated that the primary cause of the increase is the depreciation of the cedi. Speaking to Peace FM, Dr. George Dawson Ahmoah, Strategy and Corperate Affairs Director of the Company and also the Vice-President of the Association of Ghana Industries stated that the fast depreciating cedi is not only a concern to Ghacem but a concern to industry at large.
Source: New Crusading Guide
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