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Opinions of Monday, 1 November 2010

Columnist: Anane-Gyinde, Kwaku

‘Ghana Needs A Rescue Plan’ Says Investment Expert.

A German based Ghanaian Investment expert has called for an immediate rescue plan to save the economy from further decline and a possible imminent collapse . This rescue plan according to him should be swift, immediate and all inclusive since the Mills led administration has shown lack of understanding and ability to handle the economy for almost two years after taking office.
The call was made by Mr Alhassan Yakubu Talli an Investment banker at a forum organised by the Association of Ghanaian Businesses in Germany[AGBIG] in Bonn over the weekend.
Mr Talli was particular critical of the government’s handling of the economy describing it as amaturist ,lacking purpose and direction which has led to massive increases in not just utility prices but on basic food items as well.
The 42 year old investment expert expressed concern about the uncontrolled borrowing of the NDC government stating that the mounting debt being accumulated if not checked could bring the country into the unenviable situation of HIPC.
Echoing a recent IMF report on Ghana, Mr Talli said in the absence of the right fiscal policies coupled with a well coordinated economic policies, no amount of external borrowing can stop the economy from further decline.
He pointed out that the recent industrial action by a large section of the working population to press for unpaid salaries is a clear indication of the real state of the Ghanaian economy adding that the situation needs to be addressed before it gets out of hand.
The unfortunate aspect of the crisis is that instead of listening to the legitimate concerns of these workers with the view to finding acceptable solutions, government response has so far been a policy of abuse, insults and name calling further worsening an already bad situation.
Mr Talli reminded all Ghanaians that democratic governments derive their mandate and legitimacy from the people and any government that treats the working class with such contempt has lost the right to rule and declared ’governance is a social contract between government and the governed and when the government breaches a condition of the contract, that contract becomes void and has no validity.’
Touching on investments in Ghana, Mr Talli disclosed that investor confidence is at an all time low due to the lack of the right macro economic policies coupled with the threat to private property rights since the NDC government assumed the reigns of power in 2009.
He explained that investors in this day and age invest in particular countries not just for profit motives but for ethical reasons and the ethical investor would avoid countries where human rights, press freedom, freedom of expression and private property rights and not respected and upheld.
‘I speak to investors from around the world on daily basis so I know what they are thinking and saying and the verdict is that Ghana is not an attractive place for investment under the current dispensation and something needs to change’. He concluded.
Kwaku Anane-Gyinde