Rate at which foreign investors are packing out of Ghana alarming – Lord Mensah

A Senior Lecturer at the University of Ghana Business School, Professor Lord Mensah, has indicated that Ghana’s economy is struggling due to both global and international pressures.

The rising fuel prices in Ghana was exacerbated by the geopolitical tension between Russia and Ukraine.

The local currency, the Cedi has also been falling against the major trading currencies. The cedi is currently trading beyond 7 cedis to the dollar. Analysts have predicted it is most likely to cross 8.

Speaking on the Sunrise show on 3FM Monday March 21, Prof Lord Mensah said “This economy is suffering from global pressures and internally, we have our own problems.”

He also noted that “Foreign investors are pulling out of our economy and that is alarming.”

Following this development, importers and exporters have warned consumers in Ghana to prepare to pay more for goods and services due to the poor performance of the cedi.

Executive Secretary of the association, Samson Awingobit, said members of his association have no option but to pass on the high cost of importing goods on to the consumer.

Mr Awingobit earlier told journalists in Accra on Tuesday March 8 that “The business community is worried and consumers should also be worried because at the end of the day if an importer will have to go through and bring goods under this high cost rate of the dollar to Ghana cedis, 7.4 per dollar as we speak, it tells you that goods and services prices will have to go up.

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“That will not be well for the Ghanaian consuming public looking at the economic situation of the ordinary Ghanaian.

“I strongly believe that our call that majority of our import is coming from China market and so there is no need for any Ghanaian business person to say he is travelling to China to buy goods, should be listened to. You put physical cash at the commercial bank exchanging for dollar, instead of the Bank of Ghana or the government making Chinese Yuan available.

“So far as this supply is coming from China there will be no need for dollar before you go to China. I strongly believe that that is the only way to go through. So make Chinese Yuan available in the market.”

Meanwhile, the Ministry of Information has announced that the just-ended Cabinet retreat held between Thursday, March 17 and Sunday, March 20 has seen tough decisions approved by President Nana Addo Dankwa Akufo-Addo.

The decisions are set to be announced by the Minister of Finance later this week after meeting key social and economic stakeholders.

They are to ensure a turnaround for the economy.

Among the decisions is President Akufo-Addo approving a number of far-reaching measures aimed at mitigating the depreciation of the Cedi, ensuring expenditure discipline and providing relief in the face of global fuel price hikes and inflation as well as ensuring that priority programmes meant to grow he economy are protected, the Ministry said in a press release on Monday, March 21.

3news.com also gathered the retreat agreed on reopening the country’s land borders within two weeks subject to meeting all protocols.

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By Laud Nartey|3news.com|Ghana