Professor Arthur Dissou Yarhands, a senior lecturer at Akenten Appiah-Menka University of Vocational Training and Entrepreneurial Development, urged President Akufo-Addo to apologize to Ghanaians for the mismanagement of the economy.
The speaker who spoke to Prince Minkah on Dwaboase on Power 97.9 FM on Monday August 8 lamented the posture of managers in the economy as rating agencies continue to downgrade the economy.
Last week, credit rating agency S&P Global Ratings lowered Ghana’s debt further into speculative territory, lowering the country’s foreign and local currency sovereign ratings to junk.
The economy was rated from B-/B to CCC+/C with a negative outlook.
The recent ratings come after Moody’s downgraded Ghana to Caa1 with a stable outlook in February this year.
According to S&P, the negative outlook reflects “Ghana’s limited trade financing options and limited external and fiscal buffers.”
The downgrade in the S&P C currently means the country is vulnerable to default and dependent on favorable business, financial and economic conditions.
The rating agency, however, said that the COVID-19 pandemic and the conflict in Russia have amplified Ghana’s fiscal and external imbalances.
“Foreign currency demand has been driven higher by several factors, including outflows of non-residents from domestic government bond markets, dividend payments to foreign investors, and rising costs of refined petroleum products,” did he declare.
S&P adds that Ghana’s inability to access Eurobond markets has affected the economy.
The country’s outstanding debt is nearly 80%.
According to the Bank of Ghana, the country’s public debt increased to 78.3% of GDP (393.4 billion GH¢) at the end of June 2022, from 76.6% of GDP (351.8 billion GH¢) end December. 2021.
Of the total outstanding debt, domestic debt amounted to GH¢190.1 billion (37.8% of GDP), while external debt amounted to GH¢203.4 billion (40 .5% of GDP).
It is for this reason that Professor Yarhands Arthur thinks the managers of the economy should apologize to the nation’s voters.
He said that Akufo-Addo in the run-up to the 2016 election ensured he managed the economy well unlike then President John Mahama.