How Ghana’s Debt Level is Affecting Businesses and Individuals: IEA

The Institute of Economic Affairs (IEA) has expressed disappointment and frustration over Ghana’s current debt level, urging the government to swiftly conclude the restructuring process.

The IEA warned against relying solely on the International Monetary Fund (IMF) loan-support programme, highlighting the risk of a fiscal relapse.

The Director of Research at the IEA advised the government to adopt lessons from Cote D’Ivoire’s sustainability efforts and develop a culture of fiscal discipline.

“To make a difference, it is important that we take our economic destiny into our own hands – and not mortgage it to Washington,” he said.

He also encouraged the country to pursue transformational policies that would change the structure of the economy into an export-oriented one to produce import substitutes.

“It is notable that despite the often-proffered view that Ghana may sacrifice growth if we target much lower rates of inflation, Cote D’Ivoire has consistently achieved simultaneous low inflation and growth. We can learn from them,” Dr Kwakye said.

“We need to leverage our internal resources and capacities to develop our economy and permanently position it beyond aid and debt.

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These are not things that are beyond our capabilities and reach,” the IEA Director of Research said.

The IEA is worried about the country relying on the IMF loan-support program to achieve debt sustainability in five years, stating that the situation is disheartening and frustrating. The IEA Director of Research urged the government to develop a culture of fiscal and financial discipline and pursue transformational policies capable of changing the structure of the economy into an export-oriented one