Former Trade and Industry Minister Alan Kwadwo Kyerematen has called for Ghana to ultimately bring the Bank of Ghana’s policy rate into single digits, arguing that expensive credit remains a major obstacle to private-sector investment and economic transformation.
Mr Kyerematen said the gains from lower inflation and improved macroeconomic stability would have limited impact on businesses if the cost of borrowing remained high.
He made the call on Wednesday at a public lecture organised by the Center for Strategic African Development (CENSADEV) at the British Council in Accra.
The lecture was held under the theme, “Transformation of the Ghanaian Economy: From Stability to Prosperity.”
According to Mr Kyerematen, Ghana’s economic recovery should move beyond improvements in headline indicators to creating conditions that allow businesses to expand, invest and create jobs.
He argued that further reductions in inflation should provide room for the monetary authorities to lower the policy rate, with a long-term target of bringing it below 10 per cent.
The former Trade Minister identified access to affordable finance as an important condition for private-sector-led growth.
He said Ghana could not achieve meaningful economic transformation if businesses continued to face high financing costs.
Mr Kyerematen’s argument formed part of his broader call for Ghana to move from macroeconomic stability towards productive investment, industrialisation and job creation.
He also called for greater private-sector participation in the economy, including the use of private capital to finance major infrastructure and other commercially viable projects.
Source: www.kumasimail.com
