Don’t rely on foreign investment, rather empower citizens — Economist tells gov’t
By Solomon Nartey Tetteh
The Director of Research at the Institute of Economic Research and Policy Practice (IERPP), Dr Frank Bannor, has called on government to prioritise empowering Ghanaians to drive national development rather than overly depending on foreign direct investment (FDI).
Speaking on the Business Breakfast Show on Zed 101.9 FM, Dr Bannor argued that Ghana’s most valuable capital is its citizens, not natural resources or foreign investors.
He cautioned that excessive reliance on FDI risks undermining the country’s long-term growth.
“When we talk about raising revenue, people think it’s all about attracting FDI by relaxing our investment laws so that foreigners come in and fleece us. The best and most important capital we have as a country is the citizens,” Dr Bannor stressed.
He cited examples from advanced economies, noting that their progress has been built on empowering citizens who, in turn, finance development through taxes, not foreign investors.
“In those countries, it is taxpayers’ money that pays for the development we admire when we travel, not foreign direct investment,” Dr Bannor explained.
The economist disclosed that out of a population of about 34 million, only 2.5 million people pay taxes. This, he said, leaves the bulk of national projects dependent on foreign financing through bonds and FDI.
Dr Bannor warned that this model allows foreigners to invest relatively little and repatriate huge profits, which stifles sustainable growth.
“We cannot continue to govern as a country in this manner. We need to be intentional about development,” he stated.
Dr Bann urged the government to invest in policies that empower citizens to produce, sell and substitute imports, which would in turn broaden the tax base. He further suggested introducing a credit scoring system as a means of incentivising compliance and participation in the economy.
“Even many Ghanaians who earn less than GHS10,000 are paying taxes. It is time to raise resources and empower our own people to drive development,” he added.
