Ghana could offer aid to the rest of the world - Professor Bokpin

Professor Godfred Bokpin, an Economist, says Ghana could offer financial assistance to the world in the next five years.

This was possible if governments commit to tackling corruption ruthlessly.

Ghana is presently implementing a US$3 billion loan-support programme with the International Monetary Fund (IMF) which is likely to attract an additional US$3.8 billion in financing assistance from the World Bank.

Meanwhile, a Joint Technical Committee established by the Ministry of Finance in support of the country’s Domestic Debt Exchange Programme (DDEP) has determined that Ghana may save some GHS83 billion through fiscal reforms.

It further said that privatizing some state-owned enterprises might save GHS20 billion while still generating GHS13.9 billion in revenue, which is lost through financial irregularities by Metropolitan, Municipal, and District Assemblies (MMDAs).

“If we can deal with corruption alone, in five years, this country [Ghana] will have enough money to give aid to the rest of the world, and we’ll preserve our environment,” Prof Bokpin said in an interview with the Ghana News Agency.

This follows the Finance Ministry’s announcement that the country risks losing US$3.8 billion in World Bank financing if the President signs the Proper Human Sexual Rights and Ghanaian Family Values Bill.

The Ministry warned that such developments could have a negative impact on the country’s foreign exchange reserves, exchange rate stability, and external support for the 2024 budget.

However, Prof Bokpin, a finance lecturer at the University of Ghana, said the Finance Ministry’s statement was meant to create fear and panic.

He noted that the country faced similar threats of financial losses and loss of reputation prior to independence, but the leaders chose self-governance rather than focused on the negative consequences.

Prof Bokpin said it was important for the country to look internally for more revenue, plug loopholes in the public financial system, saying, “Nobody will come and develop this country for us; if so, they would have done it long ago.”

“Whether we sign the anti-LGBTQ law or not, aid is not sustainable for any country in Africa. How much Ghana loses through corruption and illicit financial flows is far more than this aid that we’re talking about from the West,” he said.

He added that the World Bank and the IMF would not use anti-LBGTQI legislation as a ‘weapon of first resort’ against Ghana because the two development finance institutions continued to fund countries such as Egypt, Uganda, Tunisia, The Gambia, Zambia, and Chad, who have harsher LBGTQI punishments.

Last week, the IMF reached a staff-level agreement with Egyptian authorities under an Extended Fund Facility (EFF) and considered the country’s request for an increase in IMF support from US$3bn to $8 billion.

The Executive Board of the Fund also concluded the fifth review of Uganda’s Extended Credit Facility (ECF) arrangement last week, leading to the immediate disbursement of US$120 million to Uganda.

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