Economic Mismanagement Under Bawumia Fueling Skilled Labor Exodus, Says Financial Expert

However, he emphasized that today’s exodus of skilled labor is driven by severe economic hardship, a significant departure from historical migration patterns.

Mr. Korsi Dzokoto, from Waxson Advisors, shared insights on the alarming trend of skilled labor migration during an interview at the Caucus For Democratic Governance, Ghana Public Forum in Accra. Themed “The Alarming Exodus of Skilled Labour from Ghana: Political and Economic Strategies Aimed at Trend Reversal, and Immediate Necessity,” the forum tackled the economic challenges prompting Ghanaians to seek opportunities abroad.

In his remarks, Mr. Dzokoto acknowledged migration as a natural part of life, with many Ghanaians moving within the country to cities like Accra. However, he emphasized that today’s exodus of skilled labor is driven by severe economic hardship, a significant departure from historical migration patterns.

“The rise in living costs is crushing families,” Dzokoto stated. “If you used to buy kenkey at one cedi, it now costs six, seven, or even eight cedis. Incomes aren’t increasing to match these prices, leaving the average Ghanaian struggling.” He attributed the current crisis to economic mismanagement, citing the government’s heavy borrowing, which has pushed Ghana’s debt-to-GDP ratio from 57% to over 100% in 2022.

Dzokoto quoted Dr. Mahamudu Bawumia’s remark, “When the fundamentals are weak, the exchange rate will expose you,” noting how the cedi’s depreciation, now at around 17 cedis to the dollar, reflects weak economic fundamentals. This situation, he added, has led to Ghana’s first-ever default on debt payments.

Dzokoto also challenged the President’s assertion that Ghana’s economic woes stem primarily from the COVID-19 pandemic and the Russia-Ukraine war. He pointed out that while Ghana’s inflation hit 54.1% in 2022, Africa’s median inflation rate was about 11%. He argued that poor economic management and over-borrowing, rather than external crises, were the primary causes of Ghana’s economic collapse, leading to the need for a debt exchange program affecting pensions and savings.

As a solution, Mr. Dzokoto referenced former President Kufuor’s advice: if the current leadership is delivering, re-elect them; if not, vote for change. “Ghana deserves better than what we have now,” Dzokoto concluded.

Source:dailydemocratnewsonline.com

GDPMr. Korsi Dzokotoskilled labor migration