June 15, 2024 8:45 am

Kwame Pianim calls for better structures to stabilise Ghana’s macroeconomic environment

Senior Economist and politician, Kwame Pianim, has said Ghana’s economy must be boosted in order for government to provide a conducive macroenvironment for investment.

According to him, the current macroenvironment is not an ‘enabler’ because prices are in the wrong direction, a situation he said has left the country in crisis.

He says creating an enabling environment will attract more investors to help boost the economy.

Speaking at a forum organised by the IMANI Centre for Policy and Education on the theme; ‘Ghana’s Macroenvironment, an Enabler or Hammer to attracting investment, Mr. Pianim underscored the necessity to make Ghana’s macroenvironment a relative, rather than an absolute, to sustain the GDP growth to ensure a friendly environment for investment.

“Your relative macroeconomic stability doesn’t have to be absolute. Your Cedis doesn’t have to be fixed, it can depreciate and if your Cedi is depreciating, it is likely better than domestic inflation then exporters will be happy. So, it has to be relative and not absolute” he stated.

He said an economy moving in a robust manner is a “necessary but insufficient condition for you to make social progress.”

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The Investment Banker therefore emphasised that these achievements have to be supported by increasing productivity in all sectors of the economy.

Mr. Pianim further explained that, an economy where incentive systems are structured to attract the best and the brightest into productive and regulatory sectors of the economy as its allied services to put competent people in positions to produce the necessary results is what Ghana needs to build a dynamic investment environment.

He reiterated that unlike a stable macroeconomic environment, an unstable one has the likelihood of eroding gains of investments in the country, the need therefore, for policymakers to do their utmost best to make the macro environment stable.

“More importantly, we should not waste crisis, we have a crisis now, maybe the time has come to cut our coat according to our cloth. Thus, cutting expenses, especially, demand for politicians expenditure to know whether it would be sustainable or viable.

“We need to have a government that is perceived to be catering for the needs of the disadvantaged many as opposed to pondering the greed of the rich few,” he concluded.

The IMANI forum, partnered by German Cooperation, GIZ Ghana and organised on Tuesday, April 5, 2022, centred on allowing relevant stakeholders in the economy to determine if government is providing a conducive environment for investment or otherwise.

Source: Samuel Nyarko//Ghanasonline.com



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