John Alan Kwadwo Kyerematen, Executive Director of CENSADEV and Founder of the United Party, has called for a shift towards a private-sector-led economy to drive Ghana's economic growth. Speaking at a public lecture in Accra on September 24, he emphasized the need for private initiative and ownership, industrialisation, agricultural transformation, export expansion, and an enabling business environment. This, he believes, will transform Ghana's economy from stability to sustained growth.
Kyerematen, a former Minister of Trade and Industry, stressed that Ghana cannot build an enterprise economy when citizens and businesses are overly dependent on government. He stated that supporting private-sector growth would promote entrepreneurship, innovation, and risk-taking, which are essential for the country's economic transformation. According to him, this is the only way to save the country from its current economic challenges.
The former Minister also called for an institutionalised public-private dialogue mechanism to enable businesses to engage with the government on policies and regulations affecting their operations. This, he believes, will create a platform for the private sector to contribute to the country's economic decision-making process. Kyerematen's suggestions aim to promote a collaborative approach to economic development.
Kyerematen emphasized that macroeconomic stability alone is not enough to transform the economy, stressing the need for industrialisation. He cited the development history of major economies, which shows a strong link between industrialisation and economic strength. He identified strategic industries such as oil palm, cassava, garments, and textiles as having potential for employment creation and value addition.
The Executive Director also proposed increasing revenue from non-traditional exports to $25 billion by 2030, from the current level of just over $3 billion. He advocated for greater use of Ghana's natural resources, such as bauxite and iron, to produce aluminium and steel locally. This, he believes, can support the assembling of automobiles and other manufacturing activities, contributing to the country's economic growth.
On agriculture, Kyerematen called for an agricultural revolution based on mass participation by Ghanaians. He proposed that the government support citizens to own farms and operate them as businesses rather than solely for subsistence. This, he believes, will increase productivity and contribute to the country's economic growth. Kyerematen also suggested reforms in taxation and revenue mobilisation.
Kyerematen commended the government for reducing inflation and stabilising the cedi but cautioned against relying excessively on foreign-exchange reserves to sustain currency stability. He warned that speculators would take advantage of this approach and advocated for stronger exports and greater confidence in the economy for sustainable currency stability.
Key points
- Private sector leadership is crucial for Ghana's economic transformation.
- Industrialisation and agricultural transformation are essential for economic growth.
- Reforms in taxation and revenue mobilisation are necessary for sustainable economic development.
