Dr. Ishmael Yamson, Board Chairman of MTN Ghana, has challenged the government to ensure Ghana’s current economic stability lasts for at least 10 years. He states that investors need long-term certainty before committing significant capital to the country. This call comes amidst Ghana’s historical pattern of economic boom-bust cycles.
Dr. Yamson explained that Ghana’s economic history makes investors sceptical about the sustainability of current gains. He noted that the country often takes three years to build economic progress, only to destroy it over five years. This cyclical nature prevents serious investors from believing in lasting stability.
This perspective fits into Ghana’s broader economic narrative, where short-term political cycles often dictate economic policy. Previous governments have focused on immediate stabilisation measures without creating structures for sustained growth. The challenge is to break this cycle and establish enduring economic resilience.
Speaking on Joy News’ PM Express, Dr. Yamson commended the government for its progress over the past 18 months. He stated, “We haven’t achieved that level of economic stability before.” He acknowledged the dramatic improvement from Ghana’s previous economic position.
However, Dr. Yamson stressed that the real test lies in building resilience to protect these gains from future economic shocks. He argued that sustainability requires robust foundational pillars. Without these, economic stability remains vulnerable to external pressures and internal policy shifts.
He pointed out that past governments often stabilised the economy in the short term but failed to create long-term pillars. This oversight has perpetuated the boom-bust cycle. Ghana needs to move beyond temporary fixes to structural reforms.
Dr. Yamson cited the government’s Gold for Reserves programme as a potential initiative to strengthen Ghana’s economic resilience. He acknowledged the programme carries risks but believes it is vital. Achieving a 15-month reserve cover by 2028 would provide a stronger foundation for stability, he noted.
He also highlighted long-term investment in agriculture as another critical area for addressing structural weaknesses. Dr. Yamson observed that Ghana’s persistent food inflation shows the limitations of previous interventions. He mentioned that initiatives like Planting for Food and Jobs did not fully resolve the issue.
Investing in 250,000 hectares for oil palm plantations, including for food production, could address food security over the long term. This approach tackles a fundamental issue with a sustainable solution. It moves beyond short-term price controls to increase domestic supply.
Dr. Yamson emphasised that controlling expenditure alone is insufficient for lasting stability. He stated, “You can suppress expenditure now to bring stability, but you need to create pillars for resilience.” These pillars allow the economy to withstand future challenges.
He believes the government must successfully implement its long-term resilience initiatives to change Ghana’s economic history. Dr. Yamson stressed that Ghana must convince investors that its stability will survive political cycles. Serious investors make decisions based on decades, not electoral terms.
“Nobody builds a factory for five years,” he remarked, noting that major investments like Unilever have lasted for many decades. Investors establishing factories or plantations think decades ahead. Therefore, Ghana’s stability must align with this long-term investment mindset.
Breaking Ghana’s boom-bust cycle requires a shift from short-term economic stabilisation to building resilience that can survive successive governments. This strategic pivot is essential for attracting and retaining significant foreign direct investment. It will also foster sustainable domestic economic growth.