Joe Jackson of Dalex Finance stated that Ghana is financially troubled, citing debt issues and inadequate resources for students. He criticized the previous administration’s management of the economy, while also noting some signs of recovery in the financial sector. Professor Khalid highlighted positive market responses to new government signals. President Mahama addressed the dire economic conditions and proposed measures for restoring fiscal stability amidst rising debt levels.
Joe Jackson, the Chief Executive Officer of Dalex Finance, has stated that Ghana is currently in a state of financial distress, which he attributes to the previous administration’s inability to manage its debts. This claim contradicts former President Akufo-Addo’s assertion that the country is not broke. Jackson emphasizes that the dire economic situation is further exemplified by the inadequate daily meal allowance for senior high school students, who receive less than 2 Cedis a day.
During a discussion on TV3’s “Key Points,” Jackson described Ghana’s economic condition, asserting, “Ghana is broke and we continue to be broke. If you can’t pay your debt, are you not broke? Anyone who disagrees is living in a different reality.” He criticized the handling of the cocoa sector, warning that previous actions may severely hinder efforts to stabilize the cedi in the future.
Despite the challenges, Jackson noted some positive indicators of economic recovery. He highlighted improvements in the financial sector, specifically mentioning the decline in Treasury bill rates, which he views as a favorable development for the overall economy. His observations were echoed by Professor Sharif Mahmud Khalid, an Economic Advisor at the Office of the Vice President, who remarked that the market is responding positively to recent governmental signals.
Professor Khalid explained that the current administration inherited an “overheated economy” from the prior New Patriotic Party (NPP) government but emphasized that economic indicators are trending positively as a result of government reforms. He praised the decision to reduce the size of the government, stating that it has significantly benefitted the economy.
In his State of the Nation Address, President John Dramani Mahama acknowledged the severity of Ghana’s economic troubles, which he described as dire and deeply rooted. He reported that the nation’s public debt has escalated to GH₵721 billion, with state-owned enterprises such as the Electricity Company of Ghana and COCOBOD heavily in debt. Mahama also noted that the energy sector faces a financial shortfall of approximately GH₵34 billion due to various inefficiencies and legacy debts.
The President revealed alarming debt servicing obligations, predicting that payments over the next four years will total GH₵280 billion. He reaffirmed his administration’s commitment to restoring fiscal discipline and economic stability, proposing measures to complete structural reforms and ensure sustainable debt repayment through corrective fiscal policies.
In summary, Ghana is currently facing significant economic challenges highlighted by substantial public debt and inadequate financial management under previous administrations. While Joe Jackson and Professor Khalid offer a glimpse of hope, citing positive trends in the financial sector, the overall outlook remains precarious. President Mahama’s acknowledgment of the economic plight emphasizes the need for immediate reforms and strategic measures to restore stability and fiscal discipline in the country.
Original Source: 3news.com
