According to Dr. Nii Kwaku Sowa, Chairman, Economic Policy Committee, NDPC and Commissioner General for Securities and Exchange Commission (SEC), Ghanaians in the diaspora remitted about $3 billion home as at 2018.
Indicating that, though there is a huge flow of resources into the country, most of these go into construction and other consumption activities.
Meanwhile, financing experts have suggested the introduction of diaspora bonds as debt instruments by government to raise development finance from its diaspora communities as viable alternative to borrowing from the international capital market and multilateral development finance institutions (DFIs)
And also securing bilateral loans as the way forward as well suggesting that, the Securitization of remittances from Africa’s Diaspora can be another valuable source of development financing essentially as long-term funding through the sale of assets to a special purpose vehicle (SPV) that then could incur debts secured (remittances backed bonds) by the assets, which are collateralized by future income stream.
Dr. Nii Kwaku Sowa made these known in his key note address at
the 3rd National Development Planning Commission (NDPC) monthly Forum on Financing for Ghana @100 Development Agenda.
Speaking further, he indicated the need for finance flows where the market is fair and efficient; thus “no investor would give up his or her funds where there are doubts about recouping the investment when it is due believing it is important for government to establish credibility beyond doubts that it is managing it’s resources well”.
Therefore noted that in order to achieve a national innovative financing for national development plan for the next forty years, as a country, we must adhere to the following sources of non-fiscal financing; as in harnessing Resources from National Endowments as well use our natural resources effectively.
“Development projects are mostly of medium to long term projects; we should be borrowing from banks and the general public through the sale of Treasury bills, while a good way to plug a short-run budgetary gap, can be a costly way to finance a meaningful development projects” Dr. Sowa said.
He used the ocassion to appeal for the need to ensure significant improvement on the Ghana Stock Exchange, that is government deciding to off-load some of its shares in State-owned Enterprises and use funds to raise for development.
On his part, Prof. Emeritus Stephen Adei, Chairman of NDPC called on the need for public sector growth, to restore balance that is needed; explaining that, public sector expenditures/ wages must not go beyond certain limit stressing “we must go for long term financing, especially targeted at infrastructure development”.
Prof. Emeritus Adei noted that in order to achieve Ghana @100 development agenda, “we must tackle corruption more aggressively; passionately and whole-heartedly”.
“We must stop the importation of used clothes and food items; such as frozen chicken among others”, he opined.
Calling for the stoppage of financing public university education, but only concentrate on the science-based courses mainly on the (STEM) to achieve national development wholistically.
As well “ensure people pay for their wrong doings/actions” he noted.
The Forum was held under theme: Innovative Financing for the Ghana @100 Development Agenda.
Story By: Delali Gavor