Economist and currency analyst at GCB Capital Limited Courage Boti is urging government to strengthen its industrialization policies as it moves to negotiate with China for debt forgiveness.
He demystifies perceptions that China may seize the opportunity to take over the local industries if the negotiations are successful.
However, Finance Minister, Ken Ofori-Atta, has disclosed that government’s planned high-level meeting with Chinese creditors over Ghana’s debt restructuring has been postponed to late March 2023.
Speaking to Citi Business News Economist Courage Boti argued that the perception of importation of inferior goods from China is subjected to the purchasing power of the importers.
“In a bargain, concessions must be made .I think at this point in time the most pressing issue is that our debt is not sustainable and we must find a way to return it to sustainable path. Negotiating with them will mean that we’re trying to get them on our side so that they could cooperate with debt restructuring,” he said.
“The question is, it will come at what cost? Will it mean dampening of Chinese goods?,” He quizzed.
Again the Chinese goods on our market on our market: the quality argument and associated perceptions, our traders decide what they bring in and so the quality we talk about are determined by what we are willing to buy,” he stated.
“Another question is, do we as a local economy immediately have capacity to produce the things that we ordinarily import from China? Our industrialization policies are not up and running. So I don’t see what China will demand from us differently from what we have in place”, he added.