The Vice President of IMANI Africa, Selorm Branttie, has attributed the shrinking of Ghana's economy to a widespread lack of appreciation for value creation.

Contributing to a discussion on Joy FM's Super Morning Show on Tuesday, November 19, about the rising cost of food and services and its devastating impact on the citizenry, he emphasized that the health of any economy is directly tied to the value it can generate.

According to Mr Brantie, "Every economy thrives on how much value you are able to add to it. So, if you give me a 100 cedis and I am able to transform it to and add let's say 10 cedis to it, that is creating extra value. That value can have a multiplier effect because it can go on to do other things."

However, he lamented that, in Ghana, there seems to be a growing disregard for even the smallest amounts of value. "For many of us, we have realized that the little value we create is being eroded daily," he said.

He believes this erosion is compounded by a government policy focus that, in his view, keeps people in a state of poverty.

"There's a huge disregard for this kind of value because the government seems to be interested in making people so poor that any little populist freebie or giveaway should be something that should be valued".

The IMANI Africa fellow further explained that is worsened by the depreciation of the cedi, which has led to constant changes in the prices of everyday goods. "When the cedi loses value, the result is that by the time individuals manage to sell their products, their profits are insufficient to cover the initial capital spent, let alone the costs of restocking."

He pointed to the situation at the Abossey Okai spare parts enclave in Accra, where many spare parts dealers no longer maintain their inventory. Instead, they have become resellers for Chinese importers, unable to afford the direct importation of goods due to the rising costs.

As a result, these traders are forced to operate with much smaller profit margins, which further shrinks the market.

This ongoing cycle, according to Mr Brantie, is indicative of the broader economic challenges facing the country.

He concluded by stressing that the current hardships reflect a wider issue of value erosion, which ultimately stifles economic growth and development.