Ghana government urged to provide regular updates on state of the economy

A professor of finance with the University of Ghana, Godfred Alufar Bokpin, has urged the government to regularly update Ghanaians on the state of the economy.

That, Prof Bokpin, who is also an Economist, said would spark confidence in the economy and reduce the “let’s wait and see” attitude that many investors adopt during election years.

He said this in an interview with the Ghana News Agency amid concerns by industry and the trading community on the continuous depreciation of the cedi against major trading currencies, particularly, the dollar.

“We’re in a crisis; COVID-19 was a pandemic, but we saw a certain level of leadership that recognises that we face some kind of existential threat, therefore, the President mobilised,” he said.

The Ghana Union of Traders Association (GUTA), for example, has indicated that members had lost about 20 per cent of their capital to the depreciation of the cedi against the dollar since the beginning of 2024.

The cedi, which was trading against the dollar at about GH¢11.98 at the beginning of the year, is now around GH¢14.85 in many forex bureaus in Accra.

Prof Bokpin said that the government, led by President Akufo-Addo, could do little about the structural challenges of the economy, but engineer confidence that would help in stabilising the depreciating cedi – “the pulse of the economy.”

“If there’s anything that the President can do right now, it is to begin to update regularly Ghanaians. Where we are now requires regular updates from the government, and that update will entail what they are doing on a daily basis and results,” he said.

He explained that such regular updates from the government on the state of the economy and actions being taken to address the challenges could be the starting point of instilling confidence and restoring hope in the economy.

That, Prof Bokpin said, would also be a way of the President telling Ghanaians that though there is limited time left for him to leave office, he is determined to ensure that he would “leave a legacy that we will all be proud of.”    

He urged businesses and households to be moderate in their expectations about the fall of the cedi before the year ends, saying, “There’s no significant inflows or supply of foreign exchange that will help to offer the kind of stability needed.”

Source: GNA