The Alliance for Development and Industrialisation (ADI), a think-tank, has called on the International Monetary Fund (IMF) and the World Bank to channel their financial assistance for Ghana into the manufacturing sector of the economy.
That, it said, would help in the effort to find a lasting solution to the country’s industrialisation drive.
A statement issued in Accra and signed by the President of the think-tank, Richard Danso, said the current gross domestic product (GDP) growth depicted that the fundamentals were there for Ghana to structure and build a vibrant economy.
The recent figures released by the Ghana Statistical Service (GSS) depict that the economy expanded by 4.8 percent of GDP.
However, the manufacturing sector recorded a GDP growth of 8.8 percent by the end of the second quarter of this year.
World Bank project
According to the organisation, over the years, most of the World Bank’s project support had not helped enough to catapult the needed impact expected by the international development agencies.
It said the challenge had been that private participation had been lacking and that had not helped the country to record the needed growth.
The statement said the impact of the country’s industrialisation on the economy could be achieved if all donor support was focused on industrialisation and privatisation to ensure a sustainable social development.
“We believe that Ghana’s dependance on cocoa should be diverted for a multi-sectorial focus, for example, mango, avocado and coconut, among others. Our natural resources should be processed at an affordable price to take advantage of the Africa Continental Free Trade Agreement,” it said.
“The cedi depreciation gives Ghana the opportunity to trigger Africa’s industrialisation and export drive among member countries which would give the country the needed forex, improve our balance of payment, shore up our reserves as well as stabilise the cedi,” it said.
“We believe that notwithstanding the cedi depreciation with its profound advantage there is the need for a critical investment for the country to realise its returns,” it said.
The ADI urged the government to strengthen financial institutions so they could attract the needed investments, as well as foreign direct investment, flows into the country.
It advised the government to cut down on public service expenditure by introducing private sector participation to promote good performance and efficiency.