Audio By Carbonatix
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.
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 said 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 said 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 said it, that the current government has the platform, and the environment to make those structural changes,” he said.
Prof. Turkson stressed the importance of improving electricity supply and infrastructure to support businesses, particularly manufacturers.
“Another thing that is important is electricity. We need our businesses to be competitive,” he said.
He warned that when local companies cannot compete because of high production costs, Ghana’s dependence on imports increases, putting additional pressure on the cedi.
The economist called for investment in roads, rail networks and other infrastructure to reduce the cost of doing business and strengthen Ghana’s position as a regional economic hub.
“If we begin to reduce our reliance on imports, it’s a fundamental change that we need, and the import substitutes that we begin to produce would enable us to even begin to look at the West African market,” he said.
Prof. Turkson said Ghana needs more examples of industries producing for both local consumption and export markets as part of a broader economic transformation agenda.
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