Business News Mon, 23 May 2022

Togbe Afede XIV advocates for change in the structure of economy to deal with inflation

Bank of Ghana veering off its mandate - Togbe Afede XIV

Inflation for April hits 23.6% - GSS

Key sectors of our economy owned by foreigners - Togbe Afede XIV

The Paramount Chief of the Asogli Traditional Area, Togbe Afede XIV has advocated for a change in the structure of the Ghanaian economy to deal with the increasing inflation rate.

He believes the situation has become a permanent feature of the economy which needs to be critically looked at and addressed.

Speaking during an engagement with board members of the National Petroleum Authority, Togbe Afede XIV also bemoaned the situation where foreign ownership has largely dominated the Ghanaian economy.

‘If you look at our economy, including the oil and gas sector, you will realize that the bulk of it, unfortunately, the most important sectors, are owned by foreigners. So, a huge chunk of our earnings accrues to foreigners," he is quoted by Citi Business News.

“Our mining, banking and telecoms sectors are dominated by foreigners. Thus, large movement of funds out of these sectors, for dividend payments, for example, wipe out our trade surpluses, and invariable, we suffer deficits, with adverse ramifications for the cedi,” he added.

He however called on the central bank to implement stringent measures aimed at stemming the country’s soaring inflation rate.

The Ghana Statistical Service recently announced that Ghana's inflation reached 23.6 percent for April this year from an earlier 19.4 percent recorded in March 2022 – the highest recorded in 18 years.

The rate has since the beginning of this year been surging significantly with monetary policymakers [Bank of Ghana] indicating they are baffled by this development while optimistic about addressing it.
Source: www.ghanaweb.com
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