The President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has voiced concerns about the impact of an overly liberalised market on Ghana's economy.
During an interview on JoyNews' PM Express, Dr. Ayim-Darke expressed reservations about the current extent of market liberalisation, stating that the openness allowing anyone to import a wide range of goods has adverse effects on the country's foreign exchange reserves.
He argued that the unregulated influx of imports muddies the waters and sets off a chain reaction, significantly affecting foreign exchange rates and triggering confusion in the policy and lending sectors.
“We practice a liberalised market where the extent of the libralisation allows every Tom, Dick and Harry to import everything and anything into the country, therefore, they muddy the waters.
“And the cascading effect is that it has a significant impact on your forex and once that happens, it triggers your policy and lending rate and brings a total confusion,” he noted.
He further highlighted the potential consequences of a liberalised economy, emphasising that Ghana, as a middle or low-developing economy, should not adopt an approach where regulations are disregarded.
Drawing comparisons with more developed nations like the United States of America and China, he noted that even in those countries, regulations are not entirely abandoned, contradicting the current trend in Ghana.
The AGI President stressed that the prevailing situation in Ghana allows for individuals to import virtually anything without adequate controls, contributing to the challenges faced by the manufacturing sector.
He asserted that the unbridled free market has taken a toll on local manufacturing, hindering its growth and sustainability.
Advocating for a more controlled approach to imports, Dr. Ayim-Darke urged a reconsideration of the current liberalized economic model.
He suggested that a balanced and regulated system would better serve the interests of Ghana's economy, providing stability and support for the manufacturing sector to thrive.
Latest Stories
-
Internal struggle over who succeeds Mahama in 2028 has started – Afenyo-Markin claims
4 minutes -
NDC’s mischievous campaign and propaganda will soon expose them – Afenyo-Markin
25 minutes -
African banks to remain exposed to domestic, global operating environments risks – Fitch
27 minutes -
Premier League: Wolves agree deal for Pereira to become new boss
30 minutes -
Fitch expects outlook for sub-Saharan African sovereigns to be neutral in 2025
30 minutes -
NDC’s Joseph Yamin allegedly leads mob to seize bullion bars at PMMC Assay Centre
37 minutes -
Ghana’s external position moderately stronger -IMF
48 minutes -
Many NDC MPs will become redundant in the new parliament – Afenyo-Markin
51 minutes -
Maintain a tight monetary policy stance – IMF to BoG
55 minutes -
Ghana needs to ‘review’ Olympic preparations of its athletes – Patrick Boamah
56 minutes -
Charles Kumi wins 2024 Man Ghana Bodybuilding contest
59 minutes -
David Ocloo resigns as assistant coach of Asante Kotoko
2 hours -
Josh Acheampong to sign new at Chelsea until 2029
2 hours -
Akufo-Addo hails peaceful 2024 election as testament to the resilience of Ghana’s democracy
2 hours -
SIC Insurance Plc poised for success as it holds its AGM
2 hours