Kyerematen urges more private capital and lower rates for Ghana's economy

Pinned summary · as of 06:33

Alan Kwadwo Kyerematen, a former Minister of Trade and Industry, used a public lecture at the British Council in Accra to argue that Ghana should draw far more on private money to build infrastructure. He gave the address on Wednesday under a title that pointed from economic stability towards prosperity.

What we know

• Mr Kyerematen delivered a public lecture at the British Council in Accra on how the Ghanaian economy can move from stability to prosperity.
• In that lecture he pressed for a bigger role for private investors in the economy, including private funding for major infrastructure and other projects that can earn their own revenue.

What's disputed / unconfirmed

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  Kumasi Mail reported that the Center for Strategic African Development (CENSADEV) organised the lecture; no other report has said who hosted it.
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  According to Kumasi Mail, Mr Kyerematen said Ghana has no clear national performance targets for judging whether governments deliver on long-term goals, and that celebrating lower inflation and a steadier exchange rate is not enough without measurable aims. This has not been confirmed by other reports.
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  Kumasi Mail also reported his view that stability only counts if it turns into investment, industrialisation, jobs, stronger firms and better living standards, and that institutions in charge of development planning should coordinate better. Other reports have not carried these points.
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  Kumasi Mail reported that Mr Kyerematen wants borrowing costs cut, with a policy rate below 10 per cent as a long-term goal once inflation falls further, arguing that expensive credit holds back private investment. Only this publication has reported the call.
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  The Ghana Report reported that Mr Kyerematen criticised the plan to pay for the US$4 billion expressway planned between Accra and Kumasi with state money, saying private investors could finance, build and run a road that earns revenue and then recoup their outlay. This has not been confirmed by other reports.
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  The Ghana Report said he also proposed public-private partnerships to ease pressure on public finances, so that government could redirect funds to roads in communities across the country. Other reports have not confirmed this.
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  The Ghana Report noted that the government has said it plans to fund the expressway without borrowing, and that President John Mahama recently announced US$2 billion had already been raised inside Ghana. Both points come from that report alone.

Why it matters for Ghana

How Ghana pays for big roads decides how much is left for the feeder and community roads that farmers and traders use daily. The cost of borrowing also shapes whether small and medium businesses in Accra, Kumasi and elsewhere can expand and hire. The debate over private versus public financing of the Accra-Kumasi route will affect the public purse and, potentially, what road users are asked to pay.