Thank you for supporting Mahama’s initiatives, but how will a two-month war affect Ghana? – Terkper Shades Bawumia

Former Finance Minister Seth Terkper has reacted to Vice President Dr Mahamudu Bawumia Thursday speech to the nation, accusing him of failing to plan for the future and blaming external forces for the country’s current economic situation.

 

Dr Bawumia blamed Ghana’s expanding debt stock on the COVID-19 pandemic and the banking sector clean-up during a presentation at a seminar hosted by the National Tertiary Students Confederacy (TESCON) in Kasoa in the Central Region.

 

“Ghana’s debt to GDP grew by 17.6 percentage points of GDP between 2019 and 2021. It’s worth noting that absent the $15.1 billion in special items — the financial industry, followed by energy and Covid – Ghana’s debt-to-GDP ratio would have been around 68 percent, rather than the present 80 percent,” he said. “The projects that we have undertaken from the loans over the years, you will see that we borrowed to build the University of Environment Science and Sustainable Development, that is part of the debt, the Pokuase Interchange is part of the debt, the Tema Mpakadan Railway is part of our debt, the Kumasi Airport Phase 2 is part of our debt, the Tamale Airport is part of our debt,” he said, justifying the money borrowed so far. Is Ghana Prepared for a Month-Long War?

The former finance minister also slammed the Akufo-Addo administration’s attempt to blame the economy’s problems and failings in the last four years on the Russia-Ukraine conflict, which only began around a month ago (in February).

 

He prayed for a swift conclusion to the fight so the government could sit up and clean up its act, as he was concerned about the impact of recent wars on Ghana’s economy.

 

“Reminder: the Russia-Ukraine war began in late February (one month ago) and is being blamed for the shortcomings of the previous four years? God forbid a long war, but are we prepared for its full impact in the coming weeks and months?”

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