Agricultural Economist and Economic Policy Expert, Peter Boamah Otokunor, has emphasized the need for an agriculture-driven economy to ensure sustainable growth.
Speaking on the state of Ghana’s economy on the keypoints with Alfred Ocansey, Otokunor critiqued successive government’s approach to economic development, arguing that merely citing GDP growth figures does not reflect the true impact on ordinary citizens.
“When you want to design your economic policy to respond to the needs of the people, you look at where it matters most, where it affects the people most,” he stated on March 1.
He highlighted that subsectors such as crops, cocoa, livestock, fishing, and manufacturing significantly contribute to employment and should be prioritized in economic planning.
Otokunor criticized the previous government’s spending habits, particularly in an election year, stating that the economic growth reported does not necessarily translate into improved living standards.
“If you say the economy grew by 6.3% GDP, and so you have done well, you would be performing an exercise of disingenuity because that does not really tell the story,” he asserted.
He pointed out that debt restructuring provided the government with fiscal space to make impactful economic decisions, yet many critical subsectors underperformed.
He also warned that the fourth-quarter economic figures might reveal the real cost of excessive spending by the previous government.
Citing personal experience, Otokunor expressed concern over high-interest rates, which make it difficult for businesses to expand.
He recounted his attempt to secure funding for his poultry farm expansion, where he encountered exorbitant interest rates.
“Last year, I wanted to expand my poultry farm, and I needed some funding… I was looking at an interest rate of about 39%. Now, if I’m going to borrow at 39%, considering all the other business factors, how would that business survive?” he questioned.
He welcomed the recent decline in Treasury bill rates and expressed optimism that economic policies under the new administration would create a more favorable business environment.
Otokunor commended President John Mahama’s vision of using agriculture as the foundation for economic growth.
He highlighted the “Agriculture for Economic Transformation” agenda, particularly the “Feed Ghana Programme,” aimed at increasing food production and reducing imports.
“Our food import bill is about $2 billion. Are you aware that we are spending $400 million every year to import only tomatoes?” he asked, emphasizing the need for a Vegetable Development Programme to cut down on food imports.
Additionally, he noted that Ghana spends $300 million annually on poultry imports, underscoring the necessity of policies like “Poultry Farm to Table” to boost local production and employment.