He said Ghana is at a crossroads and the need to institute major corrective measures cannot be overstated, adding that there is no shortage of solutions to our problems. It is the government’s indolence and greedy affinity for a cosmetic approach to governance that has brought the country to this point.
He said he believed that despite the current gloom, the country can turn things around and create a better future.
He listed 13 alternatives to the government to change the economic crisis.
- Mahama urged President Nana Addo Dankwa Akufo-Addo to sack Finance Minister Ken Ofori-Atta for plunging Ghana into an economic crisis.
- He urged the government to disband the current economic management team led by Vice President Dr. Mahamudu Bawumis and reconstitute a new one to help bring economic respite to Ghanaians.
- He urged the president to urgently reshuffle his cabinet. More than 5 years of administration without major ministerial reshuffles have calcified the management of ministries, departments and agencies. These MDAs and SOEs have become fiefdoms in which untouchable ministers and heads of agencies are now the monarchs of whatever they oversee.
- Mahama said the severity of the economic collapse must compel the government to unveil a clear and workable cause of action, emanating from wide-ranging reflection and consultation, rather than its current state of denial and erroneous causal attributions. This broad consultation should lead to a post-COVID economic recovery plan. A program that will focus our energies on building an economy whose fruits of growth will benefit all Ghanaians and give everyone a fair chance to succeed.
- There must be a clear and measurable reduction in public spending. While this is not an easy cause of action, it is nonetheless necessary. I’ll be the first to admit it after leading the economy to 0%, 0%, central bank financing in 2016.
- He said the government needs to drastically reduce and reduce its size, streamline and bring to reasonable levels the salaries of CEOs of state-owned enterprises, other senior civil servants and heads of state organizations.
- He also urged the government to drastically limit borrowing. If we all agree that we are in an economic pit, overwhelmed by the suffocating weight of unsustainable debt levels and at risk of default, then the wisest thing to do is to limit borrowing.
- The government must adequately signal to international lenders a clear effort to meet future obligations and the government must commit to using some of the windfall gains we have made from higher crude oil prices to revitalize the fund amortization in anticipation of future debt service.
- The government must also take immediate steps to restore credibility in the management of the economy. A contributing factor to falling investor confidence in our economy is the practice of under-reporting and concealing key economic indices like the budget deficit, government debt and net international reserves.
- Additionally, the government needs to clarify reports circulating in the investment community that it intends to use the Heritage Fund as collateral to raise a $2 billion loan from a consortium of banks.
- It is evident that the assumptions underlying the 2022 budget projections, especially in terms of revenue, are overambitious and unlikely to be achieved given everything that has happened since the budget was presented.
He instructed the government to return to more realistic goals and avoid creating new doubts in the minds of investors.
- He said it was time to change the structure of our economy by allowing Ghanaians to achieve General Acheampong’s popular mantra of “capturing the commanding heights of our economy”. We must increase the GNP of our country in proportion to our GDP.
- We must leverage our comparative advantage in agriculture by investing in agribusiness to complete the agricultural value chain in terms of marketing and processing our agricultural products.