- Dr. Yamson reflects on how Ghana’s economy struggled after Nkrumah was overthrown.
- Despite challenges, He believes Ghana can avoid future IMF bailouts with the right changes.
- He warns Ghana to change its economic direction to avoid IMF bailouts
Ghana has faced financial difficulties, leading it to seek support from the International Monetary Fund (IMF) 17 times over its 68-year history. Dr. Ishmael Yamson, former Unilever Ghana boss, believes this pattern must stop.
In an interview on Joy News’ PM Express Business Edition, Dr. Yamson emphasized the need to avoid a dreaded 18th IMF bailout by changing the country’s economic course.
Reflecting on Ghana’s economic potential after independence, Dr. Yamson expressed regret over how the nation’s progress slowed after Kwame Nkrumah’s overthrow. He recalled how proud Ghanaians felt post-independence, noting that Africans in London would identify as Ghanaian, and the British assumed all Africans were from Ghana.
He also reminisced about the booming industrial scene in Tema during the 1960s, with factories operating and nearly 400 vertically integrated manufacturing companies set up under Nkrumah. He remembered buying his first Volkswagen, with tires made by Bonsa Tyre Factory, supplied by local rubber plantations.
Dr. Yamson believes Ghana’s economic decline began when many state-owned companies shut down after Nkrumah’s fall. “The moment Nkrumah was removed, everything went downhill,” he said, blaming the Bretton Woods institutions for pressuring the military government to close these factories.
While acknowledging that state-owned enterprises faced challenges under government control, Dr. Yamson criticized the way privatization was handled. “Divestiture wasn’t the problem, but we didn’t act wisely,” he said. Today, many of these enterprises are no longer operational.
He pointed out that, according to the Finance Minister’s presentation at the National Economic Dialogue, only two state-owned enterprises are profitable, while the rest are running at a loss due to political interference.
Dr. Yamson expressed concern about Ghana’s dependence on foreign aid, saying, “How can a country in 68 years go to the IMF 17 times? Let’s pray we don’t make it 18.”
Despite these challenges, Dr. Yamson remains hopeful. “The situation is difficult, but not hopeless. I still believe that if we truly follow through on the reset agenda we’ve proposed, we won’t need to return to the IMF,” he concluded.
