Renowned economist and lecturer at the Ghana Institute of Management and Public Administration (GIMPA), Mr. Kwabena Ntiamoah has said that until Ghana adopts an Import Substitution Program to reduce the importation of goods and services, our currency will continue to depreciate.
Speaking in an interview with Nyankonton Mu Nsem, the economist noted, if Ghana adopts this program, we will not be able to boost domestic production.
Import Substitution Program is a trade and economic policy which advocates replacing foreign imports with domestic production.
This form of economic policy, is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products.
Mr. Kwabena Ntiamoah explained, Ghana have a competitive advantage especially on some of our natural resources including our cocoa which as a country we can take advantage of and produce it in different varieties for domestic consumption which can save government from importation.
He indicated, government can set up industries to manufacture or use our natural and raw materials which we have competitive advantage over, to produce our domestic needs.
Mr. Kwabena Ntiamoah added, we need a government with the commitment of adopting the Importing Substitution Program to cut on the dependence on foreign products.
Citing Ethiopia as an example, a country known for the production of strawberry, he said, they have taken competitive advantage of this commodity by manufacturing different forms of products which is domestically consumed, boosting the local economy.
He lamented over the way and manner in which the country diversified majority of its industries, stating that, it has affected the nation economically since these industries had gone in the hands of foreigners or had collapsed totally.
Mr. Kwabena Ntiamoah concluded, Ghana allowed itself to be deceived by our foreign partners in selling off our asserts to our own detriment but was hopeful that, if we maintain the ones we have and embark on industrialization, we will have economic stability and reduce our dependency on foreign materials.