Stability must last 10 years, not 4 – Dr Yamson challenges gov’t to make boom-bust economy last

Dr Ishmael Yamson, the Economist and Board Chairman of MTN Ghana, has urged the government to ensure Ghana's current economic stability lasts for a minimum of 10 years. He made this assertion during an appearance on Joy News’ PM Express, citing investor skepticism due to Ghana's history of economic cycles characterized by periods of growth followed by significant declines.

Yamson explained that investors have observed this pattern, expecting that current stability isn't sustainable. However, he expressed optimism about the current situation, commending the government for the remarkable progress made in the past 18 months. He noted that achieving this level of economic stability before is commendable, given Ghana's previous struggles.

While acknowledging the need for resilience to protect gains from future shocks, Yamson emphasized that past governments barely focused on long-term strategies to maintain stability. Instead, they prioritized short-term measures, often weakly constructed, which failed to provide a solid basis for enduring economic health. Yamson highlighted the Gold for Reserves program as one initiative that could bolster Ghana's economic resilience, but also recognized the associated risks.

He argued that attaining a 15-month reserve cover by 2028 would significantly strengthen the country's economic foundation, indicating a higher level of preparedness to sustain stability. Yamson suggested investing in agriculture as a means to tackle structural economic issues, specifically the persistent food inflation. He pointed out that despite previous interventions, food inflation has remained a major challenge.

Yamson proposed investing in 250,000 hectares for oil palm plantations, a move he believed would address fundamental economic weaknesses over the long term. Yamson stressed that merely controlling expenditure isn't sufficient for economic stability. He argued that creating long-term resilience is essential once short-term measures have stabilized the economy.

Yamson believes Ghana must not only achieve economic stability but also demonstrate its ability to maintain it for a decade or more to attract serious investors. He pointed out that investors plan their investments over decades, not just electoral cycles. Yamson used the example of Unilever, which has been operating in Ghana since shortly after Nkrumah's overthrow, to illustrate the long-term commitment required from both the government and investors.

To break Ghana's boom-bust cycle, Yamson believes a shift from focusing solely on short-term economic stabilization to building long-term resilience is necessary.