Former President John Dramani Mahama has taken on the governing New Patriotic Party (NPP) over what he calls a “total collapse of the economy”.
Mr. Mahama said President Nana Akufo-Addo and his head of the economic management team had failed to make pragmatic decisions aimed at salvaging Ghana’s fragile economy.
“President Nana Akufo-Addo and his Head of the Economic Management Team, rather appallingly, remain nonchalant in the face of this serious crisis and have limited their response to the imposition of very harsh and regressive tax measures, one of which is the E-Levy, which has been roundly rejected by the people of Ghana.”
He said the government had also “resorted to unhelpful political posturing over suggestions on how to stem the downward spiral, ensure discipline, and help the economy recover.”
The former President’s comment comes in the wake of Moody’s and Fitch downgrade of Ghana’s credit rating.
Moody’s downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa1 from B3, and changed the outlook from negative to stable.
It said the new rating reflects the woes of Ghana in fixing its liquidity and debt challenges.
The government has declared intentions of revitalizing the economy through the introduction of the electronic transfer levy.
The former President in a write up however said the e-levy is not a reliable means of generating revenue.
“Like one drowning and yet clutching at a mere straw to stay afloat, this government has banked all its hopes on the E-Levy, which, given the gravity and depth of the problems that have beset our economy, is neither adequate nor viable as a sustainable response to the crisis.”
“It is painfully obvious that beyond the ill-conceived E- Levy, the Akufo-Addo administration has no viable or credible plan of action to get us out of the current economic doldrums into which they have plunged us; meanwhile, there can be collective buy-ins from the Ghanaian people, development partners and the investor community that is being ignored.”
Mr. Mahama called on the government to devise urgent measures to revive the economy, rather than relying on the e-levy.
“The government must swallow what is left of its pride and create a platform for urgent and constructive dialogue among stakeholders with the view to fashioning out a robust set of policy responses to the economic challenges before we get to the point of no return.”