The Ministry of Finance has downplayed fears that investors may shy away from investing in Ghana following the recent downgrade of the country by credit rating agency Moody’s.
According to Deputy Finance Minister Mona Quartey Moody’s downgrade of Ghana will not deter investors from coming to invest in the country.
‘It is one of the things investors will look at when they want to invest in the country, not the totality, but it is one of the things that gives them a fair idea because the rating agency would have sent their officials here to check out things. But before they would make any actual investments, they would have come here and also look at the measures we have in place and what we intend to do before they make decisions’.
Rating agency Moody’s last week downgraded the country’s credit worthiness to B3 from B2. Another agency Fitch over the weekend affirmed Ghana’s credit-worthiness at B, with negative outlook however Ms Quartey said the IMF program will help increase confidence in the economy.
‘We are going into an IMF program, so we are doing everything to achieve the upside. So that is the path, the trajectory that we are following towards achieving success. Success meaning stabilizing the economy so that we have a stabilize exchange rate, have a fairly low interest rate because we know where the inflation rate is and have a known and reasonably interest rate that private sector can borrow from and we can all enjoy from’.
She added that ‘we are on the up and the rating agencies recognize that as well and so I think these reports are to keep us on our toes so that we don’t go on the downside’.
Meanwhile, an economist and senior lecturer at the University of Ghana Dr. Ebo Tuckson insists government’s failure to quickly take drastic measures to restore confidence in the economy could shy away investors.
‘While we downplay it, we shouldn’t make it seem that it is not necessary because the ratings is something that investors look at and will always look at. Even though the IMF program will help allay any fears, because they know that with the IMF things are going to be done properly’.
Credit: citifmonline