Augustine Adongo, a former Chief Executive Officer of the Federation of Association of Ghanaian Exporters (FAGE), has called for a rethinking of Ghana’s economic challenges. In a thought-provoking article shared with The High Street Journal, he argued that the country’s overreliance on primary commodities and underdeveloped manufacturing and service sectors—known as the Guggisberg economy—continues to hinder progress, despite numerous policy interventions over the years.
Mr. Adongo emphasized that traditional approaches, such as adding value to raw materials, improving infrastructure, and boosting agricultural productivity, have failed to produce the desired economic transformation. To address this, he advocates for reframing the problem to better understand its root causes, similar to the story of an office building owner who installed mirrors by an elevator to distract people from its slowness.
He contends that Ghana’s economic problems stem not merely from exporting raw materials but from a rent-seeking mentality, where wealth is extracted without creating societal value. According to Mr. Adongo who is leading specialists on market systems development, transforming natural resources into manufactured products does not guarantee value addition when the underlying economic model remains unchanged. He proposes adopting a “value creation model” that focuses on delivering what consumers and investors want and are willing to pay for.
The former FAGE Boss also highlighted the need for connecting domestic agriculture to urban consumer demands through demand-driven value chains. He believes that creating sustainable wealth involves meeting market needs efficiently, a strategy that should be central to future agricultural policies.
Mr. Adongo urged the government and policymakers to adopt innovative economic strategies that go beyond the conventional methods, fostering a value-based approach to development. This, he says, will ensure a sustainable and transformative future for Ghana’s economy.
Mr. Adongo’s advice comes on the heels of the just ended two day National Economic Dialogue. The dialogue collated views from expects to guide government’s economic transformation agenda and views such as the one from the former FAGE Boss could enhance the approach to implementing the recommendations of the dialogue.
