In order to strengthen the economy, former president John Mahama has advised the government to give agribusinesses top priority and help important stakeholders in the agricultural value chain.
He asserts that the best course of action is to boost the agriculture sector in order to decrease imports and strengthen the weakening cedi in light of recent downgrades by international rating agencies and the high rate of inflation in the nation.
He stated this in a Facebook post to commemorate National Farmers Day, which fell on December 2 this year.
“On this important occasion, I salute all farmers for their invaluable work feeding us and supporting our industry.
“This is the moment for government to start taking farmers and farming-related enterprises seriously,” he added. “Ghana’s economy is on the verge of collapsing, as demonstrated by Rating Agencies through their constant downgrades, and the pain it has brought to many homes.”
“This is the surest way we can cut imports, support the weak cedi, and save Ghana’s economy,” he concluded.
I implore the government to give agribusiness first priority and to provide farmers and other participants in the agricultural value chain with favorable financing.
In the meantime, Moody’s modified the outlook to stable and lowered the Government of Ghana’s long-term issuer ratings from Caa2 or further junk status to Ca.
The review for downgrade that was started on September 30, 2022, comes to an end now.
According to a statement on Moody’s website, “The Ca rating reflects Moody’s expectation that private creditors will likely suffer significant losses in the restructuring of both local and foreign currency debts planned by the government as part of its 2023 budget proposal to Parliament on November 24, 2022.
In order for the government to significantly improve debt sustainability, it is likely that there will be significant losses on both categories of debt given Ghana’s high government debt burden and debt structure.