Cedi on course for long-term stability, more production for local consumption and exports expected says professor Isaac Boadi

The Ghanaian Cedi’s continuous depreciation has been attributed to the country’s inability to produce more locally and export them to other countries, according to Professor Isaac Boadi.

In a one-on-one interview on Kumasi-based Angel 96.1 FM on Wednesday, 24 July 2024, Professor Boadi indicated that our over-dependence on imported goods is one of the key causes behind the Cedi’s continued depreciation, and if we are to have a stable currency, much energy must be exerted in encouraging production for exports while reducing imports.

“For the Cedi to be stable, long-term measures must be implemented by the managers of the economy. We rely so much on importations, and that ought to be reduced considerably. We must encourage local production of goods. We must have substitutes for most of the imported products” he stated.

The Dean of Accounting and Finance at the University for Professional Studies, UPSA, said that though Nigeria and South Africa are far from getting out of the woods, measures in place to ban some imports have helped them a great deal.

“Nigeria and South Africa have banned rice imports, and this is helping their local farmers in that field. Ghana could go that way to ensure that we restrict the imports of some of the products that could be produced locally. That will not only create employment opportunities for farmers but also help in stabilizing the local currency since we will not need to use dollars to import such products’’ he advised.

“How can we import animal intestines from Europe when we have so many farmers rearing cattle who could produce them locally if we support them? Import restrictions on some of these products should be pursued by the government. We don’t need to import animal intestines when our farmers, especially in the North, have vast lands to rear these animals? Place a ban on many imports which can be substituted locally” Professor Boadi admonished.

The Government, through the Minister of Trade and Industry, K. T. Hammond, proposed import restrictions bill on 22 commodities to encourage local production and consumption.

In a press briefing, KT Hammond outlined the government’s plan to impose import restrictions on a range of products, including poultry, animal and vegetable oils, margarine, fruit drinks, soft drinks, mineral water, noodles and pasta, and ceramic tiles.

However, the opposition NDC, through the Members in Parliament, opposed the bill, saying it would lead to shortages of the products affected by the bill. The government had to put it on hold for further deliberations on the bill.

Professor Isaac Boadi, on his part, contends that until such bills are passed into law, we shall continue to see the local currency reeling under the major international currencies especially the US Dollar. Subsidies should be given to local producers of such products to boost production for local consumption and exports, he indicated.

On the state of the economy, Professor Boadi stated that though there are still challenges, economic indicators as put forward by the finance minister, show clearly that the economy is picking up momentum and we are out of the woods.

“What we need to do is to continue with the policies and programs of the government by the finance ministry. The economy is rebounding and if we continue on this trajectory, we shall get to our desired destination. The indicators are positive as we all saw and read when the finance minister read the review budget” he added.

Professor Isaac Boadi joins his colleagues, Dr. George Domfe, Dr. Frank Bannor and others in a symposium about the state of the Ghanaian economy on Thursday, July 25, 2024, at the Christian Service University in Kumasi.

Reporting by Wilberforce Asare in Accra

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