IEA urges Ghana to harness natural resources for national benefit

The Institute of Economic Affairs (IEA) emphasizes the urgency for Ghana to assert ownership of its natural resource wealth to maximize benefits for the nation.

Dr. John K. Kwakye, IEA Ghana's Director of Research, conveyed this message during a press briefing analyzing President Akufo-Addo’s State of the Nation Address and the recent Monetary Policy Committee Decision by the Bank of

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President Akufo-Addo highlighted Ghana's status as Africa's leading gold producer during the SONA, but Dr. Kwakye pointed out that much of the revenue from gold production goes to foreign companies. He advocated for new contracts to ensure Ghana's ownership of its natural resources.

Furthermore, the IEA endorsed the development of a local gold refinery and urged similar initiatives for other commodities like cocoa, oil, bauxite, and lithium to capitalize on the value addition.

Regarding the Domestic Debt Exchange Programme (DDEP), Dr. Kwakye highlighted the challenges faced by bondholders and recommended imposing a debt ceiling of 60% of GDP in addition to existing deficit limits to ensure long-term debt sustainability.

On taxation, the IEA criticized the proliferation of taxes, including the E-levy and COVID-19 Levy, arguing that they are unjustified and burdensome. They stressed the need for equal efforts to reduce government expenditure alongside tax measures to achieve fiscal consolidation.

The IEA underscored the importance of balanced fiscal policies that prioritize national development and sustainability.