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Weak infrastructure drives away investors – Minister

9/12/2015

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Source: Daily Guide Ghana - Ghana’s weak infrastructural systems, especially in the energy and transportation sectors, coupled with the ineffective public administration structures, undermine efforts to making investment in Ghana a worthwhile venture.
According to ISSER, such weak systems most often than not make it difficult for investors to make any profits as they end up spending so much on fuel to power their plants.

In its latest report titled the ‘State of the Ghanaian Economy 2014,’ the economic think-tank advised government to undertake a serious prioritization of its public finance.

“While increased efforts to mobilize revenue through an expanded tax base should be pursued, the main culprit for recent huge deficits is the expenditure by government, which should be reined in over the short-to-medium term.”

Employment creation

ISSER also advised government to pursue an employment-centred economic growth strategy that will ensure that employment expands along with production and that the benefits will be widely shared through better job opportunities and enhanced incomes, particularly for the growing unemployed youth.

“Labour productivity must also rise, commensurate with higher wages, especially for public employees under Single Spine Pay Policy.”

Furthermore, it called for an engagement in strategic infrastructural (physical, human and institutional) development, as well as the application of science, technology and innovation to enhance the creation of employment and income-earning opportunities for rapid and sustained poverty reduction.

“Physical infrastructural and human quality development should be accorded special priority in order to substantially increase absorption of the apparent over-supply of graduates from the various tertiary institutions.”

Inclusive growth

Calling for policies of inclusive growth with the objective of ensuring sustainable economic growth and human development, it said “these policies would entail a focus on the equitable participation of all including women, the youth and persons with disabilities in the economic growth process. Spatial inequality must also be tackled more effectively.”

Natural resource management

Furthermore, ISSER said government must ensure sustainability in the exploitation of Ghana’s natural resource endowments, including agriculture, minerals, as well as oil and gas, supported by strategic investments in human capital, infrastructure, science, technology and innovation.

Education

On education, it said given the present proliferation of private tertiary institutions, tighter regulation was required to promote quality education from such institutions.

“Meanwhile, the ongoing efforts to expand the public tertiary educational sector should cease, instead greater attention must be paid to enhancing the quality of the graduates from the public sector by allowing these institutions to raise the necessary resources for achieving that objective.”
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