Analyst urges gov’t to stabilise economy to boost trade, investment

By Rebecca Okine

Economic analyst Emmanuel Boateng has urged government to intensify efforts at stabilising Ghana’s macroeconomic environment in order to make the country more attractive for trade and investment.

His comments follow growing trade exchanges between Ghana and Singapore, with President John Mahama recently setting a target of one billion dollars in trade returns for the two countries.

Mr Boateng noted that while Ghana has made some progress, more decisive action is needed to sustain growth and address key challenges such as inflation.

Speaking on the Business Breakfast on Zed 101.9FM yesterday, the analyst explained that Ghana has moved from a phase of economic recovery to one of consolidating gains.

 “For almost a year now, we have been on the path of recovery, and the current government has worked to stabilise the situation. But the task now is to strengthen the fundamentals that will keep the economy stable in the long run,” he said.

A major area of concern, according to Mr Boateng, is inflation, which he said continues to be driven largely by food prices.

The economic analyst expressed worry that imported food sometimes costs less than locally produced food, describing the situation as “a very sad development” that undermines the real economy.

“The growth of this country is not being driven by the real economy, and that is a big problem,” he emphasised, cautioning that unchecked inflation discourages investors.

Mr Boateng stressed that no investor would be comfortable raising capital in a country where the macroeconomic environment remains unstable.

He therefore called for deliberate policies to strengthen agriculture and domestic production, which would in turn reduce reliance on imports and create a healthier balance in the economy.

Despite the challenges, the analyst pointed out several positives that could make Ghana an attractive destination for trade and investment if properly leveraged. Chief among them, he said, is Ghana’s political stability.

“When you look at what has happened in the sub-region in recent times, with rumours and actual coups, Ghana has remained relatively stable. Our record of peaceful changes in government is a major plus,” he noted.

Mr Boateng further highlighted the relative stability of the Ghanaian currency compared to many others in West Africa, adding that the exchange rate has significant implications for both exporters and investors.

“The depreciation or appreciation of our currency matters not only to investors but also to local businesses. If we can maintain currency stability alongside macroeconomic reforms, Ghana will remain a competitive trade partner,” he emphasised.

Mr Boateng indicated that while Ghana’s stable political climate and fairly steady currency offer a strong foundation, achieving the one billion dollars trade target with Singapore and sustaining investor confidence will depend largely on consolidating macroeconomic stability.

“The positives are there, but they need to be supported by solid economic fundamentals,” he added.