President of the Association of Ghana Industries (AGI), Dr Humphrey Ayim-Darke, has expressed reservations about the adverse effects of an overly liberalized market on Ghana’s economy, particularly its manufacturing sector.
Speaking during an interview on JoyNews’ PM Express, Dr Ayim-Darke articulated qualms about the current extent of market liberalization, citing its detrimental impact on Ghana’s foreign exchange reserves.
He emphasized that the unregulated influx of imports, facilitated by the open market policies, is leading to confusion in the policy and lending sectors, thereby significantly affecting foreign exchange rates.
Dr Ayim-Darke warned that Ghana‘s adoption of an approach where regulations are disregarded, akin to more developed nations like the United States and China, is unsuitable for its status as a middle or low-developing economy. He highlighted the need for a more balanced and regulated system to support the manufacturing sector’s growth and sustainability.
The AGI President stressed that the prevailing situation in Ghana allows individuals to import virtually anything without adequate controls, posing challenges to local manufacturing. He argued that the unbridled free market has hindered the sector’s growth and advocated for a reconsideration of the current liberalized economic model.
In his call for a more controlled approach to imports, Dr. Ayim-Darke proposed that a balanced and regulated system would better serve Ghana’s economic interests, providing stability and fostering an environment conducive to the growth of the manufacturing sector.
The concerns raised by Dr. Ayim-Darke highlight the pressing need for policymakers to reassess Ghana’s economic policies, particularly in terms of market liberalization, to ensure sustainable growth and development for the manufacturing sector and the economy as a whole.