A member of Parliament’s Finance Committee, Isaac Yaw Boamah-Nyarko, has called out government for failing to secure long-term economic stability despite recent gains in gold and cocoa prices.
The Effia MP, speaking on JoyNews’ PM Express on Monday, May 26, expressed concern over the lack of a strategic plan to grow the country’s reserves, especially its gold holdings.
“We’re selling gold but not saving it,” he declared, warning that Ghana risks wasting a rare economic opportunity.
He disclosed that by the end of December last year, Ghana’s gold reserves stood at 30 tonnes.
But just five months later, the country has sold almost 20 tonnes of gold, while its reserves have grown by less than one tonne.
“You ask yourself, if you go by this trajectory by the end of the year, how much reserve would you have built into your system?” he quizzed.
The NPP MP insisted that the NDC government’s current positive commodity price trend will not last forever.
“We are not going to get this gold price going on like this forever. We are not going to get a cocoa price rise like this forever,” he said. “So what is the government’s strategy?”
He revealed that Parliament will summon the Minister for Finance to provide answers.
“We’re going back to Parliament tomorrow to ask the Finance Minister to give us information as to government strategy and plan to consolidate this gain and also ensure that we build the buffers that will be able to stand the days of adversity,” he said.
Mr Boamah-Nyarko argued that while the government is quick to take praise when the economy shows signs of recovery, it has failed to make long-term provisions to sustain those gains.
“We are unable to plan well and unable to put in the necessary mechanisms which are more sustainable,” he said.
Citing the aftermath of COVID-19, he said Ghana’s weak fundamentals were exposed, and nothing substantial has changed since.
“We realised that our fundamentals are weak,” he noted.
The MP demanded that the Vice President, who chairs the Economic Management Team, publicly outline how the current gains are being translated into long-term buffers.
“We would want the Vice President… to assure us as a country, the kind of arrangement they are putting in place to make sure that all of these things are not just a nine-day wonder,” he said.
Mr Boamah-Nyarko also pointed out the stark difference between Ghana’s gold reserves and those of global economic powers.
“The US has over 8000 tonnes and the UK has over 2000 tonnes,” he said. “We must begin to ask ourselves where we are going.”
He stressed that boosting reserves is key to defending the currency in difficult times and stabilising the economy.
“If the government intends to use this rainfall to at least bring the cedi down, by so doing, we still make sure that we are building reserves,” he added.
Mr Boamah-Nyarko’s comments come at a time of renewed economic optimism. But for him, that optimism is hollow without a clear plan to preserve it.
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