The $2billion which the government planned to inject into the economy to shore up the strength of the cedi against the major trading currencies in the country would yield a minimal result, according to an Associate Professor of Finance.
Prof Lord Mensah, who is an Associate Professor of Finance at the University of Ghana Business School said “everything, you need dollars to import so the dollar has taken up free fall”.
Reacting to the crisis retreat by the government which ended over the weekend at Paduasi in the Eastern Region, Prof Mensah explained that “injecting such an amount of dollars into the economy will be minimal on the economy”.
“It is Insignificant to the economy”, Prof Mensah told 3FM Sunrise hosted by Alfred Ocansey on Monday.
Prof Mensah noted that A”a situation where we have about 80% of investments from the foreign companies…where did they get their investments from…the foreign markets…so whatever hits the foreign market affects us [Ghana].
“The economy needs to be restructured because we find ourselves in crisis”.
Ghana’s economy prior to covid-19 outbreak
He explained that “prior to the covid-19 pandemic, internally, we had our own challenges and the global challenges”.
“You cannot say individuals cannot walk to a bank and take a loan for their own business. How many people were comfortable walking to a bank to take a load to build? How many small businesses were comfortable to take loans from the bank to expand their businesses?”
Prof Mensah said “our wives went to the market and told us that the things they used to buy had gone up”.
“These were all signals before the covid indicated that the economy was not getting better. These showed that the economy was not getting to the people. Then covid came in and I believe they [government] overestimated the economy before coming to power “.
By Kweku Antwi-Otoo|3news.com|Ghana