Time to counter unfair reports
-About performance of African economies – Dr Adam
By Elvis DARKO, Accra
Minister of Finance, Dr. Mohammed Amin Adam, has called for a revised perspective on the performance of African economies.
He emphasized the necessity of countering the misinformation often reported by credit rating agencies regarding the economic performance of countries on the continent.
Speaking to journalists in Kenya, Dr. Adam stressed the importance of presenting the performance of African economies from the perspective of African countries.
Dr. Adam criticized the structure of international financial institutions, which he argued were originally established to address post-World War II economic recovery issues.
He stated that these institutions are ill-suited to tackle contemporary challenges such as poverty and ignorance.
He highlighted the need for reforms in the global financial market to achieve a fairer system, pointing out that these institutions were not designed with Africa’s unique circumstances in mind.
“The world war was not fought in Africa, and therefore, the continent was not impacted by it in the same way,” Dr. Adam stated.
“These international financial institutions were not established with Africa in mind.
“The time has come for the world to realize that we have moved beyond the era of weapons, ammunition, and killings. Today’s war is against poverty and ignorance.”
Dr. Adam underscored the importance of addressing modern challenges with contemporary solutions, advocating for a reassessment of how African economies are evaluated and supported on the global stage.
He also called on African governments to reform their tax systems to make payment simpler, faster, and more business-friendly.
He believes that such reforms will increase tax compliance, boost domestic revenue, and reduce the continent’s heavy reliance on expensive international loans for development.
Dr. Adam emphasized the need for fairer tax systems that treat taxpayers well. “We must reform our tax system to become fairer and treat the taxpayer well,” he stated.
He also advocated for incentives to encourage tax payments, urging taxpayers to be honest to avoid frequent audits and what he described as ‘harassment’ due to tax avoidance and non-disclosure of income.
Moreover, Dr. Adam stressed the importance of incorporating the informal sector into the tax net.
By doing so, he argued, the tax burden on the few who currently pay taxes would be reduced, and the tax base would be expanded, generating more revenue to support the continent’s development.
His remarks come amid growing concerns about the accuracy and fairness of credit ratings and their impact on African nations’ access to financial resources and investment.
In calling for these changes, Dr. Adam hopes to foster a more accurate and supportive international financial environment that recognizes the progress and potential of African economies, ultimately contributing to the continent’s sustainable development and prosperity.
