Focus on Natural Resources, Not Borrowing, for Revenue – IEA’s Kwakye Advises Mahama

Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has urged former President John Dramani Mahama to prioritize leveraging Ghana’s natural resources as a sustainable source of revenue rather than relying on external borrowing if elected back into office.

Speaking on Ghana’s economic challenges, Dr. Kwakye noted that the country’s over-reliance on borrowing has led to unsustainable debt levels, placing undue pressure on the economy. He emphasized that Ghana is richly endowed with natural resources such as gold, oil, and cocoa, which, if properly managed, can significantly boost revenue and reduce the need for external financing.

“Ghana has the potential to generate enough income from its resources to fund development projects and stabilize the economy. The focus should be on adding value to these resources, promoting local industries, and ensuring efficient resource management,” Dr. Kwakye advised.

He also called for measures to curb wasteful spending and corruption, which undermine the effective utilization of resource-generated revenue. According to him, developing transparent frameworks for resource management is critical to ensuring that proceeds benefit all Ghanaians.

Dr. Kwakye’s recommendations come at a time when Ghana’s debt sustainability is a major concern, and economic experts are calling for innovative strategies to revitalize the economy. His advice underscores the importance of harnessing the nation’s abundant resources to build a self-reliant and resilient economy.