Economist Prof. Festus Ebo Turkson says Ghana must use its current economic stability to undertake major structural reforms to strengthen the economy and make it more resilient to
The report indicates that economist Prof. Festus Ebo Turkson says Ghana must use its current economic stability to undertake major structural reforms to strengthen the economy and make it more resilient to future global shocks.
It further notes that according to him, external crises unrelated to Ghana often have serious consequences for the economy due to existing structural weaknesses.
Speaking on Joy News’ PM Express Business Edition on Thursday, Prof. Turkson stated Ghana needs to build resilience rather than relying solely on short-term stability.
“We are enjoying stability, and we need to build resilience. Resilience will come with a structural change,” he said.
He pointed to the commencement of crude oil supply from Ghana’s Jubilee fields to the Tema Oil Refinery (TOR) as an example of the kind of transformation needed.
“I was excited to see that TOR has received some oil from our Jubilee Fields to refine. That is a structural change. That is a change that is going to allow us to reduce our import of refined oil,” he said.
Prof. Turkson explained that reducing dependence on imported refined products could ease pressure on the local currency and create a better environment for businesses.
“That change will put less burden on the cedi. And if the cedi is relatively stable, inflation is low, the monetary policy rate is low, and interest rates are declining. That is a sort of environment that will allow businesses to expand,” he added.
The economist stated Ghana’s recent economic gains present an opportune moment for deeper reforms and warned against delaying the process.
“It is the change in the structure of the economy that will enable us to withstand some of these external shocks that this doesn’t come from us, but we fall the brunt of those shocks,” he said.
Prof. Turkson disagreed with calls for government to focus only on maintaining stability before pursuing major reforms.
“I do not entirely agree with Dalex Finance CEO, Joe Jackson, that we should think about stabilising and hold on a bit,” he said.
He argued that the current environment presents an opportunity for government to push investments that expand productive sectors.
“I’ve stated it, that the current government has the platform, and the environment to make those structural changes,” he said.
