An economic policy analyst has urged Ghana to accelerate industrialisation and strengthen local manufacturing to protect the economy from potential global disruptions linked to geopolitical tensions.
Peter Bismark Kwofie, Executive Director of the Institute of Liberty and Policy Innovation (ILAPI), said global conflicts could reduce international demand for some of Ghana’s major export commodities such as cocoa, gold and timber.
He explained that declining demand for these products could reduce foreign exchange inflows and place additional pressure on the Ghanaian currency.
Speaking in an interview with the Ghana News Agency, Mr Kwofie emphasised that strengthening domestic production and industrial capacity would help cushion the country against external economic shocks.
According to him, Ghana must invest more in factories and local industries to reduce its dependence on imports and build a more resilient economy.
“We must strengthen our factories and industries so that we produce more locally instead of relying heavily on imports,” he said.
Mr Kwofie was reacting to the ongoing tensions in the Gulf Region, which he noted could create uncertainty in global markets and affect investor confidence.
He also recommended strict fiscal discipline during the period of global uncertainty, noting that international investors often become cautious when geopolitical conflicts escalate.
As part of precautionary economic measures, Mr Kwofie suggested that Ghana consider extending its programme with the International Monetary Fund (IMF) for an additional year to serve as an economic buffer.
He explained that ending the IMF programme immediately could expose the country to economic management challenges at a time when global tensions remain unpredictable.
On security concerns, Mr Kwofie dismissed claims that Ghana could become a potential target because of the presence of United States facilities in the country.
He clarified that such facilities were not used for intelligence interception or military operations connected to conflicts in the Gulf region.
He therefore advised Ghana to maintain a neutral diplomatic position in the tensions between the United States and Iran, while continuing to advocate for peaceful resolution through international platforms such as the United Nations.
Mr Kwofie further urged Ghana and other African countries to remain calm but vigilant and prioritise policies that would strengthen their economic resilience.
According to him, strategies such as export diversification, industrial expansion, disciplined fiscal management and the development of strategic reserves would help Ghana withstand possible global economic shocks.
