Economist and Board Chairman of MTN Ghana, Dr Ishmael Yamson, has backed the government’s Gold for Reserves programme as part of the measures needed to protect Ghana’s recent economic gains.

He, however, admits the programme carries risks.

Dr Yamson said Ghana’s history of economic instability makes it difficult for investors to believe that the current improvements can be sustained.

“They’ve seen the history. They know what it is. We go up, we come down. We take three years to build, and we take another five years to destroy.”

But he believes the current situation is different. “If you ask me, I would say it is different this time.”

Dr Yamson said the government deserved credit for the economic improvements recorded in its first 18 months in office.

“First of all, let me congratulate this government for what it has achieved in 18 months. We haven’t achieved that level of economic stability before. It’s just dramatic, and it is worth commending them.”

He acknowledged that the IMF programme and debt restructuring may have contributed to the current stability.

“Well, it is possible. It is right to make those assumptions.” But for him, the bigger issue is whether the gains can survive beyond the short term. “You won’t get sustainability unless you build resilience.”

Dr Yamson said successive governments had largely focused on stabilising the economy without building the structures needed to preserve those gains.

“In the past, you would find that most of literally all our governments did what they could do in the short term to stabilise the economy. Didn’t go the next step to ensure that they create the pillars that will hold the economy into the longer period.”

He cited the Gold for Reserves programme as one such pillar.

“I know that everybody is saying this is ambitious, but the Gold for Reserves program, it has its risks. There’s no doubt about that. We can go through the risks and talk about the risks.”

However, he believes the programme could significantly strengthen Ghana’s economic resilience if it achieves its target.

“But if they achieve the 15 months cover by 2028, then I am very confident that we can sustain what, because that is the resilience you would have built to allow you to sustain the macro stability you are experiencing today.”

Dr Yamson also pointed to agriculture as another area where long-term investment could address persistent economic problems.

He said food inflation had remained a major challenge despite previous interventions.

“If you look at our inflation basket, the biggest problem has always been food. We spent millions of money on Planting for Food and Jobs, right? And yet, food inflation never responded.”

He said the government’s proposed investment in oil palm could address the problem more fundamentally.

“Now, if the government says, I’m going to invest in 250,000 hectares for oil palm plantation, and part of it will be for food production in plantation form. You are resolving a very fundamental issue on a long-term basis.”

For Dr Yamson, Ghana must convince investors that economic stability can last for decades, not just one political term.

“I think that if this government commits itself and actually sees through all the resilience initiatives that they have, you know, started, then I have no doubt.”

“I believe that unless we can demonstrate to investors that we can maintain stability for a minimum of 10 years, we will go nowhere.”

He said serious investors make decisions based on much longer time horizons.

“No investor comes to any country to invest money unless it is a briefcase investor who comes here, makes a quick buck, and runs away.”

“But if it’s an investor that means business, sets up a factory, employs people, he’s thinking 30 years, 40 years.”

“So, we need to create that mindset that our stability should not be four years. Should be five years.”