Bawumia proposes solution to Ghana’s economic crisis

Dr. Mahamudu Bawumia, vice president, argues that in order for Ghana to address its current economic problem, it is critical to restore fiscal and debt sustainability, reduce reliance on imports, and keep a significant portion of her foreign exchange profits.

He claimed that one of the main concerns the government brought up in talks with the International Monetary Fund was the sustainability of the government’s finances and debt.

We must make courageous, challenging, and forceful decisions and respond to both internal and international reality if we are to confront the current economic crisis.

The Vice President made this statement during a keynote speech on Wednesday in Accra at the second annual Standard Chartered Digital Banking Innovation and FinTech Festival.

The Vice President emphasized the necessity for the country to be independent in terms of how fundamental consumer goods like rice, tomatoes, and toothpicks are produced, saying, “We have to lessen import dependency as a nation.”

“We need to tighten up our permissive foreign exchange regulation. The majority of our foreign exchange revenues from trade do not stay in Ghana, and as a result, we have been running a recurrent account deficit. As a result, we must modify the structure of production and trade services.

The two-day conference’s theme, “Towards a Digital Economy; Positioning Africa as a FinTech Innovation Hub,” drew businesspeople, government representatives, politicians, and financial and fintech specialists from around the world to discuss how to create vibrant digital economies.

To improve financial inclusion and benefit from the fourth industrial revolution, the vice president said it was also wise to digitize African economies.

He claimed that Ghana was setting the bar for economic digitisation in Africa and had matured in terms of access to financial inclusion.

According to Dr. Bawumia, “I was reading only this morning that Ghana has attained a mature stage in access to financial inclusion at the current MobileWorld Conference in Rwanda. Ghana scored 100% financial inclusion.”

He credited different digital infrastructure, the mobile money interoperability payment system, the universal QR code, the payment platform, and other policy interventions implemented by the government for the gains recorded in her journey toward financial inclusion.

Dr Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana, in an address, said the Central Bank in the past few decades had been at the forefront of implementing innovative policies to propel the country’s digital economy forward and promote efficient digital ecosystem anchored on robust interbank infrastructure.

He mentioned a number of legislative and regulatory initiatives implemented to advance mobile financial services, such as the 2019 Payment System and Services Act (Act 987).

In her opening remarks, Madam Mansa Nettey, the Chief Executive Officer of the Standard Chartered Bank, stated that digital banking was essential to ensuring effective and efficient services. She then listed the various interventions the bank had implemented to meet the banking needs of its customers.

She praised the Vice President Bawumia and the Bank of Ghana for their strategic contributions to the nation’s digital revolution.

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