Ghanaian economist, Mr. Enoch Okonah, is proposing the introduction of an import levy specifically for rice and poultry.
He believes that if implemented effectively, it could contribute to the sufficiency of Ghana’s rice and poultry.
The economist expressed worry over Ghana’s imports of rice, poultry, and other basic commodities that we can produce in Ghana.
He said the greater proportion of our inflation growth or rate is as a result of the depreciation of our currency.
He explained that a rising level of imports and a growing trade deficit can have a negative effect on a country’s exchange rate and the local currency.
He also indicated that higher inflation can also impact exports by having a direct impact on input costs such as materials and labour.
He said that when there are too many imports coming into a country than its exports, it can distort a nation’s balance of trade and depreciate its currency.
He noted that the depreciation of the cedi can have a huge impact on the everyday lives of Ghanaians because the value of a currency is one of the biggest determinants of a nation’s economic performance and its gross domestic product (GDP).
To help address the challenge in the medium term, he advised the government to reduce our importation of commodities.
“Another thing we can do to help reduce our inflation is to reduce importations. We have to reduce imports and promote domestic production. If we produce and consume what we eat, it will reduce imports, which in turn will reduce inflation. Let’s tax rice imports to finance rice production. We should levy rice importation and establish the Rice Development Fund so the levy will be kept in the fund so rice farmers in Ghana will access the fund at cheaper rates to expand their farms. We should do the same for the importation of poultry. Introduce a levy on the importation of poultry to fund poultry farmers in Ghana. Over time, our cedi will appreciate.
The largest proportion of our inflation growth is as a result of the depreciation of the cedi. If we solve this problem, inflation will reduce,” he stated.
Speaking with Dr. Ren on Rainbow Radio 92.4FFM, he also advised the government to renegotiate its conditions with the International Monetary Fund (IMF), which has prevented the Bank of Ghana (BoG) from intervening in the forex market.
He suggested a potential agreement with the IMF to alleviate the situation and enable the central bank to intervene in the forex market.
By: Rainbowradioonline.com/Ghana
