Dr Richmond Atuahene Recommends Creation of Remittance Unit at BoG
Dr Richmond Atuahene, a banking expert, has called on President-elect, John Dramani Mahama, to establish a remittances unit at the Bank of Ghana, highlighting the untapped potential of foreign remittances in stabilising the country’s economy.
In an interview on GHOne TV, Dr Atuahene pointed out that while Ghana receives billions of dollars annually in remittances, less than half of these funds are channelled through the formal banking system.
He argued that addressing this gap could reduce the country’s dependence on external borrowing.
“In 2023, the World Bank reported $4.7bn in remittances to Ghana, yet only $2.8bn was tracked through the banking system,” Dr Atuahene said. “This means $1.9bn went unaccounted for. If we implement a strong tracking system, we could significantly improve revenue management.”
He referenced Bangladesh, where 95 per cent of remittances flow through banks, compared with just 50 per cent in Ghana.
“By adopting a similar approach, Ghana could mobilise more resources domestically and avoid turning to institutions such as the IMF for loans,” he added.
Dr Atuahene also noted that better remittance management could play a crucial role in stabilising the Ghanaian cedi and mitigating inflationary pressures, two of the country’s most pressing economic challenges.
Tackling Public Debt
Dr Atuahene further stressed the importance of assembling a team of economic experts to address Ghana’s rising debt levels. He identified contractor arrears and energy sector liabilities as critical areas requiring immediate attention.
“President Mahama should prioritise appointing technocrats with a deep understanding of microeconomic issues,” Dr Atuahene said. “For instance, the government owes $31m to contractors. With a credible arrears repayment plan, these debts could be cleared within three to four years, provided no new liabilities are created.”
He cited the success of similar reforms undertaken in 2010 as evidence that an organised and disciplined approach could yield substantial results.
“Even without external assistance, properly tracked remittances alone could surpass the $3bn loan secured from the IMF,” Dr Atuahene remarked.
The comments come as Ghana grapples with ballooning public debt and a depreciating currency, fuelling calls for strategic economic reforms ahead of the incoming administration’s tenure.
