Lusaka: President John Dramani Mahama has announced that Ghana aims to increase its foreign exchange reserves to more than $20 billion over the next three years. This initiative is part of a strategy to shield the economy from potential global disruptions, such as financial crises and pandemics.
According to Ghana Web, President Mahama discussed the importance of robust foreign reserves during an interview on the last day of his three-day State Visit to Zambia. He emphasized that strong reserves are crucial for developing an economy that can endure external shocks. Within the past year, Ghana's foreign reserves have risen from $8.9 billion to $13.4 billion, attributed to significant economic reforms implemented by his administration.
President Mahama underscored the inevitability of global shocks, highlighting the necessity for countries to prepare proactively. He reflected on the economic challenges faced by both Ghana and Zambia, such as debt restructuring and inflation, and noted that reforms are beginning to yield positive outcomes in both nations.
He further cited improvements such as reduced inflation, a stronger local currency, and burgeoning investor confidence as indicators of Ghana's economic recovery. Building foreign reserves is part of a broader strategy that also involves creating a business-friendly environment to enhance incomes and opportunities for citizens, thereby making them more resilient to economic disruptions.
President Mahama also advocated for heightened economic collaboration between Ghana and Zambia through a potential economic partnership agreement. He identified agriculture and mining as sectors ripe for cooperation, mentioning that Ghana already benefits from improved seeds imported from Zambia. Additionally, he shared that Zambian President Hakainde Hichilema had gifted him a tonne of maize seeds, which he plans to distribute to local farmers.
In conclusion, President Mahama asserted that a robust economy is essential for progress across various sectors, including education and agriculture, emphasizing that sustained economic growth is vital for the country's development.