Nothing is wrong with borrowing but … – Felix Kwakye-Ofosu justifies gov’t’s borrowing

• Posted on September 28, 2013
• by Nana Kwesi Coomson
• Comment

A Deputy Minister of Information and Media Relations, Felix Kwakye-Ofosu has justified government’s borrowing from the international community stating that “there is nothing wrong with borrowing in itself,” rather what the money is used for or invested into is what matters.

His comment comes in the wake of a series of statements describing the economy as fragile by institutions like the Institute for Statistical Social and Economic Research (ISSER), the International Monetary Fund (IMF) and the Minority in Parliament.

Speaking on the Citi Breakfast Show with Bernard Avle, the Deputy Minister explained that over the past few years, there has been a clear shift in paradigm, resulting in “borrowing that has gone to finance major projects that had the potential to finance themselves.”

“For instance, the gas plant that is coming up at Atuabo, all things being equal, within a matter of seven years, that project should be able to pay for itself, so that we take the $750 million that will go into it off the public debt. That will lessen our public debt situation but at the same time, it would have left us with an asset that can help produce gas which is a cheaper source of fuel for generating electricity,” he added.

In his opinion, “cheaper electricity means that institutions would be able to produce at a cheaper rate which means more profits, more profits means further expansion and more expansion means further job creation for the young people of our country.”

Meanwhile, a cross section of Ghanaians who called into the Citi Breakfast Show lamented over the country’s harsh economic conditions. 

According to them, the harsh economic condition is as a result of high utility tariffs among others imposed on the Ghanaian. 

“Things are very difficult. In fact, if you look at the petrol prices and recently the tariffs on our water and electricity, things are really difficult and Ghanaians are not just complaining; because, even at the time of Kufuor when price of a gallon of petrol was GhC3, Ghanaians were complaining so how much more now that it is GhC 10 and over. We have a reason and every right to complain” a caller lamented.



Winnifred P. Ndamse