Ghana Must Ensure Macroeconomic Stability to Attract Investors – Prof. Gyeke-Dako
Prof. Agyapomaa Gyeke-Dako, Associate Professor of Economics at the University of Ghana, has emphasized the critical role of macroeconomic stability in attracting fresh investments into Ghana’s economy.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space discussion on the topic, “Ghana’s Investment Pitch: Are We Ready to Compete in the Global Market for Fresh Investments?”, on Sunday, she noted that investors prioritize economic stability, demand for their products, and the protection of their capital before committing resources to a country.
“This then makes the macroeconomic environment very important for investment,” she stated, adding that Ghana’s recent completion of the Domestic Debt Exchange Programme (DDEP) has left many investors cautious.
Prof. Gyeke-Dako speaking further during the X Space referenced sentiments shared by economist Dr. Theo Acheampong, who observed that investors are currently in a “wait-and-see” mode, closely monitoring the government’s policy implementation.
She stressed that while policies outlined in the national budget are essential, their successful execution is what ultimately builds investor confidence. “There’s one thing in stating something in the budget and another in ensuring that it materializes. Investors are waiting to see whether the commitments in the budget will come to fruition,” she said.
Touching on fiscal consolidation, she acknowledged the government’s ambitious target of a three percent deficit reduction and noted that achieving it is possible with the right measures. She also called for closer coordination between the Ministry of Finance and the Central Bank to prevent forex market volatility, which could deter investors.
“If there is no coordination, there will be pressure on the forex, and that would deter investors. Stability in exchange rates is a major determinant of attracting investors,” she cautioned.
Her comments come at a time when Ghana is seeking to position itself as a competitive investment destination amid ongoing economic recovery efforts.
