The Dean of the University of Cape Coast Business School, Professor John Gartchie Gatsi, has affirmed that the country’s economy is currently in distress, noting that Ghana is struggling to meet its fiscal ratio thresholds.
According to him, the new government’s resumption of external debt repayment has put significant pressure on the public purse, emphasizing that the debt burden will likely hinder rapid infrastructural development as Ghana is forced to allocate more resources to servicing existing debts rather than investing in development projects.
“We are committing more to financing our existing debt rather than committing more on infrastructure across board. That infrastructure affect education, health, energy, and every sector”
In an interview with GBC at the grand durbar of the 72nd anniversary of Keta Senior High Technical School last Saturday, Professor Gatsi noted that this challenge will have far-reaching implications for Ghana’s economic growth and development.
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However, he commended the government’s decision to adopt public-private partnerships as a strategy to fast-track development.
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He said this approach could potentially unlock new funding sources and expertise, helping to drive development projects forward.
“The economy, as you see, is in difficulty. The government is exploring other nontraditional areas of financing like Islamic finance getting into alliance with the Islamic Development Bank so that other developments can be achieved apart from the ones we are achieving from the African Development Bank and the World Bank.
“And so work is ongoing, even the educational stakeholders consultation; the national economic dialogue is aimed at getting more solutions for this economic issues”, he said