Sharing his views on the possibility of reviving the economy despite the current challenges, the global trade strategist said in a statement: “Yes, but this will require strong political will which we have not seen.
“The policies of the Manifesto will need to be reviewed critically, for their viability and sustainability.
The wage bill and other government expenditures will have to be reduced considerably.
“It will be necessary to carry out a global divestiture of non-essential activities. If it has nothing to do with key infrastructure or human capital development, we should consider dropping it,” he said.
He also argued that the Cedi’s fall would stabilize, but only for a short time.
“Yes, but as a short-term measure. Stabilization is achieved by injecting USD into the system. Eventually, the government will run out of this new funding.
In the long term, the Cedi will continue to try to regain its true market level.
Since its value is tied to what it buys, primarily imports paid for in dollars, it will always be subject to market cash conditions surrounding dollar availability.
“This mainly has a depressing effect on the value of the Cedi. There are no policies to enforce patronage of goods produced in Ghana, so we can expect the Cedi to continue to lose value in the medium to long term.”.
In March, Finance Minister Ken Ofori-Atta announced that the government would reduce public sector vehicle purchases by 50% as part of measures to address the country’s current economic challenges.
In addition, ministers and heads of state institutions will also take a 30% salary cut along with a 50% reduction in fuel coupons until further notice, the finance minister announced.