Professor Lord Mensah, an Associate Professor in the Finance Department at the University of Ghana Business School (UGBS), has expressed doubts about the viability of the much-touted “Ghana Beyond Aid Agenda.
In an interview with Blessed Sogah on the Pulse on Tuesday, he explained that, given the state of the economy, it will be impossible for Ghana to thrive without external assistance.
According to him, the current Akufo-Addo administration will be unable to achieve the goal of complete self-sufficiency.
As a result, he advised that the “Ghana Beyond Aid” agenda be adopted as a longer-term future aspiration of the country that should not be limited to any particular regime.
“I’ve been saying that Ghana Beyond Aid is a project. We don’t have to look at it through the lens of a specific regime. Ghana, as a country, must view this as a project toward which we can work over the next 20 years. But, given where we are now, I don’t believe Ghana Beyond Aid is a viable option.
“Because right now, any free money that comes Ghana’s way, we’ll take it.” So I’ll say yes, it’s not possible at this time or in this regime, but we should treat it as a project,” he said.
The slogan ‘Ghana Beyond Aid’ became very popular in 2018 after President Nana Akufo-Addo rehashed it as his vision for the country. According to him, Ghana must excel on its own merits rather than relying too heavily on foreign aid or support.
Akufo-Addo stated in his foreword to a Charter and Strategy Document, which was later launched by the Presidency, that “the document also acknowledges that a responsive policy environment is required so that as we change our attitudes and values, we will not be confronted with the same old hurdles that inhibit our growth and development.”
That is why I applaud the commitment to reform and sustain a robust macroeconomic environment, increase government domestic resource mobilization, and pursue strategic investments that, among other things, will enable import substitution, particularly of food, clothing, and construction materials, in the shortest time possible.
The changes in values, mindset, attitudes, and behavior that I am advocating will complement the policy changes and reforms that are already in place. The two will reinforce each other as we march boldly and confidently toward Ghana Beyond Aid.”
However, Professor Lord Mensah, speaking at a discussion on Ghana’s economic outlook on Tuesday, said that given how the economy is doing, the government must devise effective mechanisms to salvage the situation, including accepting aid from external sources such as the International Monetary Fund.
The World Bank predicts tougher times for Ghana’s economy. This comes as the exchange rate continues to rise in the face of rising inflation and the rising cost of living, as well as an increase in the price of petroleum products.
The government is already having difficulty rallying support for the contentious E-Levy, claiming that it may not be able to meet some statutory obligations without the tax.
However, World Bank Country Director Pierre Laporte does not see an end in sight anytime soon.
“Right now, the situation is extremely difficult. Ghana faces a difficult road ahead to re-establish macro-sustainability,” he said.
He believes that the source of the country’s problems may be more than just stifled revenue generation.
Many Ghanaians have expressed concern about the impact of the situation on their lives.
The government has blamed the Covid-19 for exacerbating the economy’s problems.
However, World Bank President Jim Yong Kim insists that the warning signs were there long before the global pandemic.
