Thousands of skilled financial sector workers are now unemployed and facing poverty due to the government’s banking sector clean-up, according to former President John Mahama.
He made these remarks during the 9th Ghana CEO Network Business Cocktail on Thursday, December 7, 2023, emphasizing that the 24-hour economy is a crucial factor for the Ghanaian economy.
According to him, experiences from Ghana defy all the models and theories taught in Business Schools – because “if you have survived this economy since 2018, then you are a successful global case study.”
“Like my first participation, I have enjoyed your warm friendship and insightful conversations and shared great ideas with many of you here tonight. Of course, my determination to transform Ghana’s economy into a 24-hour working economy featured prominently in the conversations.
“But I cannot help but repeat the point made by one of the CEOs, with deep regret written on his face, that “we want to pay every legitimate tax, BUT the needless harassment from GRA must stop. Back-dated tax audits, re-audits and assessments based on the whims of the taxman are killing businesses”, he lamented,” the former President narrated.
Mr. Mahama claims that a lot of businesses are still negatively impacted by the current economic crisis.
Contrary to the Finance Minister’s claim, he said, “we have not turned any corner, and 2024 will be a very challenging year.” This is why.
“Many have shut down their businesses, and hundreds of thousands of laid-off workers are still at home. Businesses that moved headquarters from Ghana to our neighbouring countries have yet to return. The poorly thought-through banking sector clean-up has left thousands of skilled financial sector workers, jobless and impoverished.
“As I speak, the second tranche of the IMF’s Extended Credit Facility, due on the first of November, has still not been received because of a delay by our external creditors to sign off on our debt restructuring programme. Of course, the consequences of our debt default have also started manifesting. For the first time in thirty years, Ghana struggled to assemble a cocoa-syndicated loan, which had almost become routine on our financial calendar. Major infrastructure projects have stopped because lenders have cut funding as a direct fallout from our debt default.”