Stop importing; focus on the fundamentals - Kwesi Pratt

Kwesi Pratt Jnr Masa

Sat, 1 Feb 2014 Source: peacefmonline.com

Managing Editor of the Insight newspaper has opined that if government will put emphasis on the ‘fundamentals’, the cedi will shoot up and the economy will be back on its feet.

“From 1983 to now, the cedi has devalued by more than 26,000%. Over the last one year, the cedi has moved from Ghc2 to Ghc2.40p and by the end of the year, I am sure it will get to Ghc3; and it will continue to fall no matter who is in power; if we don’t tackle the fundamentals (transacting business in cedis as well as reducing the rate of importation),” Kwesi Pratt said.

Kwesi Pratt Jnr was commenting on the downward trend of the economy as well as the devaluing of the cedi.

From the beginning of the year, the cedi has been losing its value to the dollar. In managing the situation, the Bank of Ghana injected $20 million into critical areas of the economy as part of efforts to shore up the cedi.

Commenting on this on Peace FM’s morning show ‘Kokrokoo’, Kwesi Pratt suggested that if government will stop companies in the country from transacting business in dollars, the cedi will appreciate.

“Most of our contracts are given to foreign countries and so even if they are paid in cedis, it will be changed into foreign currencies. With this, the economy does not benefit…why won’t the cedi devalue. If we keep importing things we produce in this country, the cedi will keep falling…those are the fundamentals we need to deal with” he pointed out.

Kwesi Pratt said another way to improve on the economy is to change the paradigm. According to him, ‘we need a paradigm shift otherwise the trajectory will continue’.

He added that, “we must find ways to boost production and productivity in the country” and avoid importing items like rice which can be produced in the country”.

Source: peacefmonline.com