Barrister, Solicitor, Co-Founder of Danquah Institute and senior partner at Africa Legal Associates, Gabby Otchere-Darko has stated that if care is not taken, the country may soon have to borrow just to pay wages.
According to the NPP stalwart, even though the economy is growing, Ghana’s debt crisis was still extremely high and negates the economic progress.
In a tweet today, he asserted that the economy growing faster cannot save the country as the country’s ability to clear debts keeps lowering.
He stressed that it was not prudent to keep using the little revenue generated to clear debts.
Our economy is growing faster than most countries around the world. But, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
According to him, though Ghana has no food crisis, food prices have shot up 3-4 times more in the cities when there are enough foods in the farms. Apart from the transport factor, he asserts that the global food insecurity from supply chain challenges is also a contributing factor to the country’s economic woes.
“Ghana has no food crisis, enough food from our farms, yet food prices have shot up 3-4 times more in our cities, far and over above rising cost of transportation. To make matters worse, global food insecurity is worsening as inflation, from challenges with supply chain worsens,” he stated.
Mr Gabby noted that the discussion should not be what options are opened to government, but what option, if implemented will boost investor confidence in the economy.
He stressed that the E-levy that was supposedly going to support the country with some GHS600 million by now has only provided less.
“What options are opened to government? The question should rather be: what option, if adopted will reinject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m,” he shared on twitter.
What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022