Expert calls for policy overhaul to halt cedi depreciation, boost employment

A Senior Lecturer at Accra Technical University, Dr. Daniel Osabutey, has called on the government to introduce a policy requiring multinational corporations investing in Ghana to set up local production facilities within five years.

This, according to him, will, in long term, help to address Ghana’s currency depreciation and create jobs, a move he described as a win for both sides.

Speaking with Samuel Huntor on Amanyosem on Original TV on Tuesday, May 28 2024, Dr. Osabutey argued that the current practice of multinationals importing finished goods to sell in Ghana is detrimental to the local economy, hence steps must be taken to reverse the trend.

“The government should ensure that any multinational corporation coming to Ghana to invest must, within five years, set up a company to produce the finished products they are currently importing,” he stated.

“This will go a long way in bringing stability to the struggling Ghanaian cedi and help create much-needed jobs for our people.”

Dr. Osabutey’s comments come on the heels of assurances from Finance Minister Mohammed Amin Adam that the cedi is stabilizing against major foreign currencies.

However, the senior lecturer believes that more proactive measures are needed to address the country’s economic challenges.

“Relying on imported goods is not sustainable. We need to encourage local production and value addition to reduce our debt burden and strengthen the cedi. Mandating multinationals to set up manufacturing facilities is a step in the right direction.”

Addressing the media on Frida, May 24, 2024 at the Monthly Economic Update Series, the Minister of Finance, Dr Mohammed Amin Adam, said but for the recent pressures, the local currency had been largely stable, with the depreciation of the cedi against the US dollar halving from 54.2 per cent at the end of November 2022 to 27.8 per cent at the end of December 2023.

He said the cedi’s stability had continued into 2024, with a cumulative depreciation of 14.2 per cent as of May 20, compared to 20.7 per cent recorded in the same period in 2023.

However, experts continued to disagree with the country’s exchequer. While many have said the minister failed to paint the right picture of the economy, others believe pragmatic policies must be put in place to avert further bankruptcy of the country’s economy.

By: Bright Yao Dzakah | | Ghana

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