Chief Executive of Dalex Finance, Ken Thompson, has cast doubt over government’s ability to tackle the public debt in good time to the benefit of the economy.
As at July this year, the country’s total debt had hit GH¢110 billion, representing about 66 percent of Gross Domestic Product (GDP). Government has downplayed suggestions this is due to new borrowings.
It rather maintains these borrowed funds are invested in infrastructure projects that are self-financing and so should result in a significant reduction in the debt levels by the end of this year.
But Mr Thompson tells JOY BUSINESS, this might take a longer time given the projects in question.
“At over 70 percent our debt is considered to be unstainable. Government has done quite a few things, it says it has done projects and these projects are long term projects. You have to see whether or not these projects will provide a certain return to pay off these debts,” he said.
“These projects are in areas such as Education and a few roads. What I have said over and over again is that the investment should be in agriculture,” he added.
The Dalex Finance boss is urging government to stop all these investments and pump money into agriculture arguing building another 20 or 30 schools would help in paying the country’s debt.
“The investment should be in reviving the real sector of the economy which is the one that produces goods and services and the area that we are competitive is the area of agriculture,” he noted