The Chairman of AB & David Africa, David Ofosu-Dorte has predicted that Ghana’s economy may pick up in the next couple of years, but eventually worsen if government does not change its ways.
Delivering a lecture on “The 1992 constitution – A fundamental Law for our Prosperity or a well-crafted guide for our economic doom,” Mr. Ofosu-Dorte said, for Ghana’s economy to be stabilised, government will have to be disciplined.
“Let’s remember that NDC had a haircut years ago for the banking sector only. This time round, there is haircut 2 which has affected other entities. We are likely to have a “head cut” the next time. Watch 2027 to 2029, if we continue what we are doing, we will be more broke than we are now.”
“The history is very clear, anytime you are declared the fastest-growing economy, five to seven years later, you will be back to the IMF. I do not blame the IMF for it. You will notice that it encourages borrowing, and it forces us to walk to the IMF for some discipline. The economy will stabilise by 2024, but if we keep doing what we are doing now, we will find ourselves in a situation where we are forced to borrow more.”
Government sought an IMF intervention to help restore the economy as the country battles its worst economic crisis in decades.
On December 5, 2022, the government launched a domestic debt exchange programme which is part of a key requirement for the government to obtain an economic programme from the International Monetary Fund.
Holders of approximately GH¢137.3 billion of principal amount outstanding of certain domestic notes and bonds issued by the Government were invited to exchange their Eligible Bonds for a package of new bonds to be issued by the Government.
