Senior Companion at AB & David, Dr. David Ofosu-Dorte, has referred to as on the federal government to reap the benefits of the nation’s present gold export growth, by establishing a number of sovereign wealth funds to assist construct a resilient and self-sustaining economic system.
Talking as a part of the Pleasure Enterprise Financial Discussion board, themed “Ghana at Threat: The Financial Fallout of a Distant Conflicts”, Dr. Ofosu-Dorte emphasised the significance of making monetary buffers in instances of financial windfalls. He suggested authorities to reap the benefits of Ghana’s place because the main exporter of gold, to get extra income from the commodity.
He urged authorities to strategically make investments the excess revenues into sovereign wealth funds that may cushion the nation throughout financial downturns.
“We’re doing effectively this yr so removed from all indications, it doesn’t imply it is going to all the time proceed. When you might have good moments, that’s really the time to make provision for the unhealthy moments that can inevitably occur,” he famous.
Dr. Ofosu-Dorte pointed to worldwide examples reminiscent of Norway and Singapore, which have efficiently remodeled their economies by means of the institution of sovereign wealth funds. He highlighted how Norway leveraged its oil growth to construct a sturdy and future-proof economic system, suggesting that Ghana might observe an identical path with its mineral wealth.
“Norway at present, from the time oil was booming, made funds obtainable from oil, they’ve over a trillion, and it is probably the most resilient economies on this planet. They do not should impose COVID tax,” he acknowledged.
Sovereign wealth funds, he defined, would allow the federal government to diversify nationwide revenue sources, help long-term improvement targets, and defend the economic system from exterior shocks.
As Ghana continues to realize from its pure useful resource exports, Dr. Ofosu-Dorte’s feedback add to rising requires extra prudent and forward-looking financial insurance policies to safe the nation’s monetary future.
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