The Founder of the United Party (UP), John Alan Kyerematen, has called for a fundamental shift towards a private-sector-led economy to transform Ghana from stability to sustained growth.

The Executive Director of the Centre for Strategic African Development (CENSADEV) said the country’s economic transformation must be anchored on private initiative and ownership, industrialisation, agricultural transformation, export expansion, and an enabling business environment.

Mr Kyerematen was speaking at a public lecture organised by CENSADEV on the theme "Transformation of the Ghanaian Economy from Stability to Growth" in Accra last Wednesday, September 24.

Private sector

Mr Kyerematen, a former Minister of Trade and Industry, said Ghana could not build an enterprise economy when citizens and businesses remained overly dependent on the government.

“If we do not see private initiative and ownership at the core of what we are doing in Ghana, then forget it,” he stated.

He said supporting private-sector growth would promote entrepreneurship, innovation, and risk-taking, and added that “that is the only thing that can save this country.”

Mr Kyerematen also called for an institutionalised public-private dialogue mechanism to enable businesses to engage the government on policies and regulations affecting their operations.

Industrialisation

Mr Kyerematen said macroeconomic stability alone could not transform the economy, stressing the need for industrialisation.

“Apart from stabilising the macroeconomy, you need industrial transformation,” he said, arguing that the development history of major economies showed a strong link between industrialisation and economic strength.

He identified oil palm, cassava, garments, and textiles as strategic industries with potential for employment creation and value addition.

He also advocated greater use of Ghana’s bauxite and iron resources to produce aluminum and steel locally, saying the availability of such materials, together with locally produced plastics, could support the assembling of automobiles and other manufacturing activities.

He further proposed increasing revenue from non-traditional exports to $25 billion by 2030, from what he described as the current level of just over $3 billion.

On agriculture, Mr Kyerematen called for an agricultural revolution based on mass participation by Ghanaians.

“We need to have a mass participation regime for Ghanaians,” he said, and proposed that the government support citizens to own farms and operate them as businesses rather than solely for subsistence.

Revenue reforms

Mr Kyerematen also called for reforms in taxation and revenue mobilisation, including the consolidation of statutory charges at the ports.

He proposed that at least 40 per cent of shares in viable state-owned enterprises (SOEs) be listed on the stock exchange to enable ordinary Ghanaians to participate in their ownership.

On the macroeconomy, he commended the government for reducing inflation and stabilising the cedi but cautioned against relying excessively on foreign-exchange reserves to sustain currency stability.

“If we think that we can support our currency by pumping in our foreign reserves, then those who are speculators...will swallow it,” he cautioned.

He said stronger exports and greater confidence in the economy were necessary for sustainable currency stability.