Professors of Finance have urged the Ghanaian government to diversify its financial sources and crack down on corruption and illicit financial flows. This call was made by Prof John Gatsi, the Dean of the School of Business at the University of Cape Coast (UCC), and Prof Godfred Alufar Bokpin from the University of Ghana, in an interview with the Ghana News Agency.
Their call follows reports of an internal memo allegedly from the Ministry of Finance, suggesting that Ghana could lose US$3.8 billion in financing from the World Bank if the President assents to the Proper Human Sexual Rights and Ghanaian Family Values Bill. The memo also warned of potential negative impacts on the country's foreign exchange reserves, exchange rate stability, and external support to the 2024 budget.
Prof Gatsi criticized the Finance Ministry's alleged memo, labelling it as a strategy to “blackmail Ghanaians” into supporting the President's decision not to sign the Bill. He emphasized that neither the International Monetary Fund (IMF) nor the World Bank had conditions related to the LGBTQ issue when extending loans to countries like Ghana.
Encouraging the government to explore alternative financing sources, including Islamic Banking, Prof Gatsi argued that such approaches would be sustainable for Ghana's development agenda. Prof Bokpin echoed this sentiment, suggesting that while there could be consequences to the President assenting to the bill, the Finance Ministry's statement was aimed at creating fear and panic.
Prof Bokpin highlighted that many countries with harsher anti-LGBQTI laws still had program arrangements with the IMF, emphasizing the need for Ghana to move beyond aid. He emphasized that aid was not sustainable and urged the country to block revenue leakages, utilize resources efficiently, and prioritize local development.
In response, the Ministry's memo emphasized the importance of fortifying local financial systems and strengthening African financial institutions to navigate international relations in line with the “Ghana Beyond Aid” agenda.
As Ghana faces potential financial challenges, these calls from finance experts underscore the importance of exploring diverse financial avenues and combating corruption to ensure sustainable development and economic resilience.