Accra: Mr Peter Bismark Kwofie, the Executive Director of the Institute of Liberty and Policy Innovation (ILAPI), has highlighted the potential impact of global conflicts on Ghana's economy, specifically pointing to a possible decline in demand for key export commodities such as cocoa, gold, and timber. He expressed concern that such a scenario could lead to reduced foreign exchange inflows and increase pressure on the cedi.
According to Ghana News Agency, Mr Kwofie emphasized the importance of bolstering local manufacturing and industrial production to mitigate these risks. He urged the country to strengthen its factories and industries to decrease reliance on imports, thereby enhancing economic resilience.
Addressing the current Gulf Region crisis, Mr Kwofie underscored the need for strict fiscal discipline amidst global uncertainties. He noted that geopolitical conflicts often lead to cautious behavior from international investors. As a strategic response, he suggested that Ghana consider extending its International Monetary Fund (IMF) programme by an additional year to provide an economic buffer.
On the issue of security, Mr Kwofie dismissed concerns that Ghana could be targeted due to the presence of United States facilities in the country. He clarified that these facilities are not involved in intelligence interception or military operations linked to Gulf region conflicts, emphasizing that hosting U.S. facilities does not automatically make a country a target.
He advocated for Ghana to maintain a neutral diplomatic stance amid tensions between the United States and Iran, and to actively promote peace through international platforms like the United Nations. Furthermore, he encouraged Ghana and other African countries to remain calm and vigilant, focusing on economic strengthening.
Mr Kwofie concluded that with strategic policies such as industrialization, export diversification, disciplined fiscal management, and the development of strategic reserves, Ghana would be better equipped to withstand global economic shocks.