From Dr Kojo Asante of CDD-Ghana reading the speech
Accra, Ghana//-The Coalition for Democratic Accountability and Inclusive Governance (Citizens’ Coalition) has demanded long lasting solutions for Ghana’s current economic problems as the country’s economy is on its knees.
The demands which were presented by Dr Kojo Asante of CDD-Ghana at a press conference in Accra, could resuscitate the Ghanaian economy when implemented.
Economy
To address the unprecedented challenges occasioned by the rising inflation and cedi depreciation, he urged Ghanaians and the government to think outside the box to deal with the immediate symptoms of the problem, particularly food inflation and the rising cost of fuel, transportation, and health care.
The Citizens’ Coalition also called on the government to immediately work through the Ministry of Food and Agriculture (MoFA) to identify staples whose prices are driven by transportation costs and inefficient systems of delivery to urban markets from farm to market.
Dr Asante was quick to call on the Akufo-Addo-Bawumia-led government to immediately review the current policy to force the sale of foreign exchange from mining companies depriving commercial banks of forex for trading.
“Certainly, there is a need to have tighter controls on the use of forex at commercial banks, so it is not used to hoard dollars”, he told the journalists.
He strongly recommended that the government encourage public and private sector employers to return to the flexi working or work-from-home schemes deployed during the COVID-19 pandemic lockdown and after.
This, according to him, would help mitigate the pressure on particularly young people and those in lower income brackets to manage the cost of transport.
The Coalition which comprises Ghana Center for Democratic Development (CDD-Ghana), Media Foundation for West Africa (MFWA), IMANI Africa, African Centre for Energy Policy (ACEP), STAR-Ghana, and Trades Union Congress (TUC), individuals, among others should consider adding the supply of life-saving chronic medicines to the list of critical items that need forex from the Bank of Ghana.
“We strongly support ongoing talks between the government and banks to look at domestic debt restructuring.
We also strongly call on the president to, as a matter of urgency, address the nation on what it intends to do to address the worsening economic situation.
As the country wraps up a suitable IMF program, citizens need to be made aware of what lies ahead”.
As the country charts a way out of its economic woes through an IMF program, the government must ensure that whatever agreement will be tabled must be citizen-centered – one that reflects the people’s aspirations, he added.
Furthermore, the Coalition noted that there are important matters of policy and programs for the medium to long term that must be addressed courageously.
At this moment the right signals must be sent to appease citizens and assuage their fears.
“The President must listen to Ghanaians and lead the nation. His ministers and deputies must work to find short-term solutions to stem the tide of uncertainty and fear.
A national stakeholder forum can help to develop consensus on priorities for the medium to long term. We remain committed to our duty as citizens to ensure public power and resources are used primarily to benefit citizens”.
Coups and other forms of unconstitutional changes in government are never the answers to the country’s economic and governance woes which is why citizens and civil society exist to hold duty-bearers accountable.
The citizens who jubilated over coups in Mali, Guinea and Burkina and now experiencing the full brutality of military rule, it should be a lesson to us all, Dr Asante advised.
Addressing youth unemployment
In fact, addressing youth unemployment and the basic needs for young people’s survival demands a deliberate and concerted effort more than what has been seen so far.
This is an eminent threat to the country’s national security. Unfortunately, the government’s response has been woefully ineffective, members of the Coalition observed.
Governance
The Citizens’ Coalition also called on the government to address the challenges that confront citizens by cutting expenditure, plug leakages in government spending and tackle corruption.
To this end, Dr Asante and his Coalition endorsed the call by many citizens, the Majority of NPP MPs and many well-meaning Ghanaians who have asked for the dismissal of the Finance Minister, Ken Ofori-Atta and Minister of State In-charge of the Ministry of Finance at the Office of the President, Charles Adu Boahene.
“We commend the Majority MPs for taking this important step as his dismissal or resignation would restore some confidence in Ghana’s financial market. This should be done without delay”.
Reshuffle and reduce the size of govt
The President should urgently take morale boosting measures by reshuffling his ministers. Given what has transpired over the last year, it is evident that they have not been excellent, they said.
“Certainly, the team that led us to the current crisis cannot steer us out of it. The President should reduce the total number of Ministers and Deputies to no more than 70.
This will signal a clear commitment to reducing public expenditure as corroborated by the Majority Leader sometime in July”.
The Citizens’ Coalition welcomed the call by Occupy Ghana for a lean government. Based on the Professor Yaa Ntiamoah Baidu Presidential Committee on Emoluments Report of June 2020, the average monthly basic salary of a minister/deputy minister is GHS30,000.
Reducing the current 85 ministers and deputies to 70, particularly deputy ministers will save the taxpayer more than GHS5 million per year.
In addition, the state will save the cost of a fully furnished official residence or 20% of consolidated salary in lieu of housing, 24- hour security, one 4-wheel drive and one salon vehicle fuelled and chauffeured, medical and a gratuity of month’s salary per year of service for each minister/deputy minister.
The Government must urgently convene a national stakeholder platform for a discussion and citizens buy-in into the medium-term development plan for the country, the Coalition further demanded.
Energy and Natural Resources Governance
A significant component of the country’s national debt and current predicament arises from the governance of the energy and natural resources sub-sector.
CSOs have been raising concerns about the many anti-developmental policy decisions in the energy and natural resource sector, the recent one being the decision to give a mind-boggling ‘sweetheart’ deal to a single company, GENSER, with the risk of the country losing $1.5 billion while we desperately search for double this amount from international donors.
The energy sector remains key to the revival of this economy but the self-inflicted haemorrhaging and misgovernance of the sector must stop if we are serious about getting out of this mess.
The Citizens’ Coalition reiterates its call for the government to cancel or renegotiate the GENSER agreement.
In addition, the policy on who regulates the pipelines for transporting gas and who owns the infrastructure must be clarified and firmed up.
The Citizens’ Coalition remained also opposed to the AGYAPA Agreement. We consider it dead and buried, the Coalition stated.
Background
Worsening economic situation
Between July and now, the price of staples like kenkey have risen from GH₵2 per ball to GH₵3, GH₵4 and even GH₵5.
While a 5KG bag of rice has gone up from GH₵50 up to GH₵110 in some cases; a 25-litre of oil has gone up from GH₵600 to GH₵1,400, the general cost of water to drink (‘pure water’ sachet water), from 20 pesewas per sachet, with some going for three for 50 pesewas to 40, 60 pesewas per sachet.
This also means those who must buy water to bathe in the morning or use the public latrines face undignified choices.
Similarly, the cost of essential medicines, particularly those on chronic live-saving medicines, including senior citizens, are facing literally life and death situations if solutions are not found.
The cost of transportation has escalated- it now costs GH₵9 to travel from Kasoa to Accra, GH₵6.50 from Madina to Circle, GHS35 from Tamale to Salaga and GH₵25 from Bonsu Nkwanta to Asawinso just to mention a few.
Painfully, these fares are due for an additional 19% increase by next week. The price of petrol has also risen astronomically from almost GH₵12 in July to GH₵16 in October while diesel has moved to about GH₵16.
Lastly, the fast depreciation of the cedi means many people have already lost significant value on their savings and investments, and for those who have to service loans pegged to the dollar, particularly those who are trying to own a home as well as businesses who have to import essential goods, are facing unprecedented challenges.
African Eye Report
