A senior lecturer and head of the Finance Department of the University of Ghana Business School (UGBS), Prof. Godfred Bokpin has said that Ghana needs to grow its economy if managers of the economy are keen on debt sustenance.
According to Prof. Bokpin, much as many may see the country’s soaring debt as a problem, a boost in the country’s economic growth will water down the effect of the debt situation. Speaking at a BTA Business Summit Wednesday afternoon, Prof. Bokpin added that there was nothing wrong with Ghana’s continuous reliance on borrowed funds provided managers of the economy invest the borrowed funds into self financing projects
“There is nothing wrong with having debt, countries borrow and countries will continue to borrow but Ghana’s problem is how we have invested the borrowings, therefore, ” he said.
“If you don’t invest the money very well then you are going to have challenges to generate the much need money either in cedis or foreign currency to be able to service it” he added.
Prof Bokpin also revealed that if the growth of real GDP supercedes the rate of increase in the country’s debt stock, Ghana will likely stabilize the debt situation with time, and even in the long run, record significant progress in that regard.
“Government must spend right and government must spend wisely and government must spend on priority areas” he advised.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
