UNDP expert decries dysfunctional Ghanaian economy, urges reform

UNDP expert decries dysfunctional Ghanaian economy, urges reform

African Human Development Expert with the United Nations Development Programme (UNDP), Dr Ishmael Dodoo, has said Ghana’s economic environment is dysfunctional in view of the fact that the key sectors of the economy are not growing properly.

According to him, given the dysfunctional nature of the Ghanaian economy, businesses both foreign and local are unable to thrive.

“The economic environment is dysfunctional, we are not creating wealth, we don’t know the poles where wealth should be created and none of the sectors are growing properly.

“So in a pure business decision terms, no business would want to do business in Ghana,” he noted.

“There is nothing happening in the country that is enabling the thriving of businesses,” he further stated speaking on the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Navigating The Business Environment in Ghana: Why Are Businesses Folding Up?” 

Ghana’s economy is faced with the persistence of issues such as corruption, high interest rates, persistent currency depreciation, overspending by the Government, and weak economic fundamentals which have led to the exit of several foreign businesses over the last few years.

The exit of multinational companies (MNCs) in recent years include; Glovo, Nivea, Jumia Foods, Lipton Tea, Dark and Lovely, Bet 365, Game, and Bic.

The exit of MNCs can have significant impacts on the economy, including job losses, decreased economic activity, reduced competition and innovation, decreased availability of products and services, increased prices for consumers, and struggles for local businesses to fill the gap.

Moreover, the exit of MNCs can also lead to a decrease in foreign investment, which can further exacerbate the economic challenges facing the country.

Speaking on the way forward for the economy and to facilitate the creation of a conducive economic environment for businesses, Dr Dodoo averred there should be national policies that ensure that businesses borrow at cheap rates, restrict imports of certain goods, and strengthen the fight against corruption.

“We should have a national policy that says we don’t have to import certain goods and let our indigenous companies produce them.

“We also need to have a national policy that allows businesses, particularly those in the agricultural sector to borrow at a cheap rate for massive agricultural production to create jobs,” he quipped.

“WA national policy against corruption that leads to a change in the behaviour of the political class is also needed,” he added.