Amid the changing economic and financial landscape of Ghana with increasing incomes, former Minister for Finance, Seth Terkper, says it is imperative for the country and other African countries to recalibrate their remittances ecosystem.
The current Presidential Advisor on the Economy has revealed that rising income levels of Ghana and other African countries, though good news, have downsides that demand immediate attention.
He noted that the increasing incomes are gradually weaning Ghana and other African countries off concessional loans and foreign grants.
Speaking at the launch of Region 17, held under the theme “Harnessing the Power of the Diaspora to Transform Ghana’s Future”, Seth Terkper underscored the critical role of diaspora financing through remittances in an era of declining concessional loans and grants.
He touted the potential of remittance financing for Ghana’s development and for strengthening the country’s economic transformation. Terkper drew attention to the changing economic circumstances facing Ghana and other African countries, particularly as nations transition into higher income classifications and gradually lose access to concessional financing and grants.
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He explained that as countries move up the income ladder, they must increasingly strengthen domestic revenue mobilisation and develop alternative sources of financing to fund national development.
He stressed the importance of looking more closely at the nature and impact of diaspora remittances. The Presidential Advisor noted that remittances do much more than support household consumption. They are also used to build homes, establish businesses, support investments and bring products, skills and value into the Ghanaian economy.
The former Finance Minister called for a more deliberate effort to channel diaspora resources into productive investment and national development. However, he acknowledged that Ghana’s debt challenges and subsequent defaults affected investor confidence, underscoring the need for policy consistency and credibility.
Drawing lessons from the emergence of the so-called African Lions, he noted that several African economies had demonstrated during periods of global economic difficulty that strong growth was possible even under challenging circumstances.
