Seth Terkper calls for greater use of diaspora remittances to drive Ghana’s development

Seth Terkper, a Presidential Advisor on the Economy and former Finance Minister, has advocated for a strategic approach towards leveraging diaspora remittances to foster Ghana's development. He underscored that these funds, often sent by Ghanaians living abroad, are a crucial source of financing for many African nations grappling with dwindling access to concessional loans and grants due to shifting global financial conditions.

Addressing the launch of Region 17, Terkper suggested that nations aspiring to reach higher-income status must increasingly rely on domestic resource mobilization and innovative financing methods to sustain development. He cautioned against perceiving remittances merely as aid for families, instead urging policymakers to explore how diaspora inflows can be effectively harnessed to spur economic growth.

According to Terkper, remittances already bolster various sectors like housing, entrepreneurship, investment, and skill transfer, and could yield even greater benefits with the right policies. He also noted that the changing global economic landscape necessitates Ghana to bolster its domestic financing capacity, as countries with burgeoning economies are expected to rely less on external aid and develop resilient sources of financing.

Acknowledging the impact of Ghana's recent debt crisis and sovereign default on investor confidence, Terkper called for consistent economic management and credible policies to regain trust from both local and diaspora investors. He highlighted the examples of successful African economies such as the "African Lions," who have achieved sustained growth through sound policies and efficient mobilization of domestic and diaspora resources, even in a challenging global economy.