According to the economist Stephen Adei, one of the most significant contributors to the country’s current economic predicament is the incessant borrowing of money without the ability to repay it.
This development, according to the former Chairman of the Board of Directors of the Ghana Revenue Authority, is what has become an albatross around the neck of President Nana Akufo-Addo.
“I believe the biggest mistake they made was borrowing beyond our capacity to service it,” he said. “I think that was the biggest mistake they made.”
These remarks were made by him in passing at the Kwame Nkrumah University of Science and Technology while the institution was hosting the Signature Market pre-launch campaign.
Prof. Adei explained that even though exogenous factors like the coronavirus pandemic and the Ukraine-Russia war played a role, overborrowing was the final nail that threw it entirely out of gear.
This is because overborrowing was the final nail that threw it completely out of gear.
“If you are a country and you borrow beyond your capacity, you will be in trouble. Of course, COVID-19 came in, and the Russia-Ukraine [war].” “If you are a country and you borrow beyond your capacity, you will be in trouble.”
However, the reason why things got worse is because of these fundamental errors that they made, and they are required to admit that they did so,” Professor Adei explained.
In the event that this was not the case, he stated to the press that “they will not be going to the IMF.”
Prof Adei strongly recommended that the government “learn from our past experiences and do not repeat them by going on a borrowing spree.”