Renowned Banking Consultant, Dr. Richmond Atuahene, has urged the incoming government, led by former President John Dramani Mahama, to prioritize the foreign remittance sector as a means of reducing reliance on international financial assistance.
Speaking on an Accra-based television station, Dr. Atuahene emphasized that efficient tracking of foreign remittances could provide the nation with substantial financial resources, potentially surpassing the $3 billion loan from the International Monetary Fund (IMF).
“The figures on Ghana’s remittances are significant, but the majority bypass the banking sector. For instance, in 2023, the World Bank reported $4.7 billion in remittances, yet only $2.8 billion was tracked through the banking system. This leaves $1.9 billion unaccounted for,” he noted.
Dr. Atuahene called for the establishment of a specialized remittance unit within the Bank of Ghana to address this issue.
He cited Bangladesh as an example, where 95% of remittances are processed through the banking system, compared to Ghana’s 50%.
“Creating a robust system to monitor and channel remittances will not only enhance the management of the economy but also stabilize the cedi and help control inflation,” he added.
In addition to remittance tracking, Dr. Atuahene highlighted the critical need for strategic debt management.
He urged the incoming administration to assemble a team of economic technocrats capable of devising a credible plan to clear the country's mounting debts, particularly the $31 million owed to contractors and energy sector arrears.
“The President must appoint individuals who understand microeconomic issues. A well-structured arrears repayment plan, similar to what was implemented in 2010, could clear these debts within three to four years without creating new liabilities,” he advised.
Dr. Atuahene emphasized that with the right expertise and effective systems, the Mahama-led administration could achieve significant economic milestones within four years.
“The challenges are high, but surmountable. With the right brains and technical support, the administration can achieve a lot in stabilizing the economy,” he concluded.
The call for strategic focus on remittances and debt management comes as Ghana continues to grapple with economic instability, including a depreciating currency and rising inflation.
Dr. Atuahene’s recommendations present a roadmap for leveraging domestic resources to mitigate reliance on external borrowing.
Story by: Joshua Kwabena Smith
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