Audio By Carbonatix
Chief Executive of Dalex Finance, Ken Thompson, has cast doubt over government’s ability to tackle the public debt in good time to the benefit of the economy.
As at July this year, the country’s total debt had hit GH¢110 billion representing about 66 percent of Gross Domestic Production (GDP).
Government has downplayed suggestions this is due to new borrowings. It rather maintains these borrowed funds are invested in infrastructure projects that are self-financing and so should result in a significant reduction in the debt levels by the end of this year.
But Mr. Thompson tells JOY BUSINESS, this might take a longer time given the projects in question.
"At over 70 percent, our debt is considered to be unsustainable. The government has down quite a few things, it has said it has done projects and these projects are long term projects.
"We are yet to see whether or not these projects will provide certain returns to pay off these debts," he said.
According to Mr Thompson, investment in projects in sectors like Education and a few roads is not the same as Ghana investing in Agriculture.
"Stop everything and invest in Agriculture. I don't believe building another 20 or 30 schools is what is going to give us that income to pay for the debt that we have right now," he stressed.
He said the investments should be in reviving the real sector of the economy as this is the sector which produces goods and services emphasising that Agriculture is the area Ghana is competitive and attention must be paid to it.
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