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Implement growth-focused policies to attract private investment – World Bank to Ghana

David Malpass David Malpass, World Bank Group President

Thu, 21 Apr 2022 Source: www.ghanaweb.com

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President of the World Bank Group, David Malpass has called on the Government of Ghana to implement stringent policies aimed at attracting private investment from citizens and foreigners.

This approach, according to the Bretton Woods institution is rather key for countries such as Ghana in order to pave way for sustained economic growth from the fallout of the COVID-19 pandemic and the ongoing Russia-Ukraine conflict.

Speaking at a press conference to open the 2022 Spring Meetings of the World Bank and International Monetary Fund, David Malpass advocated for growth-focused policies that will woo key investors for Ghana.

“Countries should put in place policies that are strong that attract local and foreign investment. It’s very important for such policies to be growth policies. There’s been a tendency to have too much emphasis on government led investment which doesn’t add to the competiveness and productivity that is needed,” the World Bank president said.

“On Eurobonds, its important countries use proceeds effectively now after they borrow. The borrowed money needs to be used very effectively. And my worry is that hasn’t been the case in certain countries and they are left with unsustainable debt,” he added.

Meanwhile, Ghana is among many other developing countries which is currently dealing with the fallout from the COVID-19 pandemic, rising inflation figures and impact from the Russia-Ukraine tensions.

The ongoing conflict has resulted in food and fuel price hikes which have impacted significantly on the cost of living in Ghana.

Ghana’s increasing public debt stock which is now GH¢351.8 billion as at December 2021, coupled with the depreciation of the local currency, downgrades by rating agencies among others has left the nation in what some economists have described as economic distress.

But to mitigate this, government has introduced a number of revenue mobilisation measures and announced expenditure cuts to sustain the fiscal position of the country.

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Source: www.ghanaweb.com
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