The Government of Ghana announced that it plans to borrow 10 billion Ghana Cedis from the Bank of Ghana to enable it to address the economic impact of COVID-19 on the country.
On Thursday, May, 28, 2020, the Minister of Finance, Ken Ofori-Atta explained that the Gh¢10 billion will support the national response in the fight against the coronavirus disease.
In relation to this, Lecturer at the University of Ghana’s Department of Economics, Dr.Adu Owusu Sarkodie, has said that Government must invest this money into local production to retain the money in the country.
In an interview with host Samuel Eshun on the Happy Morning Show, he explained: “What we must be careful about now is that we must ensure the local economy progresses to reduce foreign dominance. We can mention any amount but if that is not invested in local production, we will be at the same place”.
He noted that the COVID-19 pandemic has greatly affected the informal sector.
“The economic activities have gone very low because of the suspension of social gatherings. Some people’s work depends on the social gatherings of people at weddings and funerals. Vendors who sell during sporting activities have also been affected. This shows that the informal sector is heavily hit by the pandemic”, he said.
He, thus, advised that the Government should take advantage of projects such as the building of roads and the building of the eighty-eight district hospitals to improve the local sectors.
“Let’s make sure that the 10 billion is invested in local production and take advantage of the year of roads and the agenda 88 hospitals. The building materials for these projects can be locally sourced. Even if it is a foreign contractor how do we make sure that most of the workers are Ghanaians? When we do this we can still retain the money in the country”, he added.