An Economist and Lecturer at the University of Ghana, Dr. Adu Owusu Sarkodie is urging the government to intensify efforts toward local production, reform the energy sector, and strengthen social protection initiatives to drive sustainable economic growth.
His comments come as the International Monetary Fund (IMF) projects Ghana’s economic growth rate at 4% by the end of 2025, a a decline from the 6% growth recorded in 2024.
Speaking to Joy Business, Dr. Owusu Sarkodie stressed the need for deliberate and strategic policies to transform the economy, especially in the face of fiscal tightening and increasing utility tariffs.
He commended successive governments for their commitment to protecting the poor and vulnerable through programs such as the Livelihood Empowerment Against Poverty (LEAP), National Health Insurance Scheme (NHIS), and free school feeding initiatives, despite fiscal consolidation measures.
Cautioning that rising taxes and tariffs on essential services like water and electricity could worsen, he highlighted the burden on low-income groups if adequate protections are not maintained.
On the projected decline in economic growth, he attributed the slowdown to stringent fiscal and monetary policies but noted that the 4% target remains achievable with the right interventions.
However, he warned, emphasizing that “unresolved issues in the energy sector could derail progress, pointing to the devastating effects of power crises, known locally as “Dumsor,” on small businesses between 2015 and 2016.”
He urged government to prioritize energy sector reforms to avoid a repeat of past power challenges and emphasized the importance of scaling up local production to build resilience against global economic shocks.
“The government must continue to protect the vulnerable, reform the energy sector, and pursue aggressive local production strategies to secure the country’s economic future,” he said.
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Source: Comfort Sweety Hayford/ATLFMNEWS