An economist with the Institute of Economic Research and Public Policy (IRRPP), Dr. Kwasi Nyame-Baafi, has questioned the CEO of GoldBod Ghana and the Mahama government about the implications of building an economy on gold procured through illegal mining activities popularly called galamsey.
In a post made on his Facebook timeline, the development economist indicated that the adverse and long-term effects of building the economy on galamsey gold are dire.
“The Goldbod CEO claims the $214 million loss is insignificant, arguing that without the BoG–Goldbod arrangement the exchange rate would have crossed GHS 20 to the dollar, imposing a debt-service burden far exceeding $214 million. Very laughable” Dr. Nyame-Baafi stated.
He wondered if Sammy Gyamfi knows the negative consequences of artificially inducing the Cedi against the US Dollar.
“Does he understand the real adverse consequences of artificially propping up the cedi and, in the process, deepening Ghana’s import-dependent economy? Does he appreciate the long-term damage of building an economy that must rely on galamsey to survive? Does he recognize the implications of effectively mortgaging national resources to a single private interest?”
“Folks, we are killing domestic industries, worsening youth unemployment, shortening life expectancy through environmental degradation, and creating opportunities to milk the nation dry” he emphasized.
The IERPP Senior Research Fellow indicated that Ghanaians may not see the adverse effects of what the government is doing now but would certainly see them in future.
“Indeed, the $214 million loss is insignificant when compared to the billions we stand to lose in the long run” he concluded.
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