![]() This is the period during which Ghana-based multinationals repatriate profits. It’s at its worst between February to March. ![]() The depreciation of the cedi has always been seasonal. The retention law is not effective to restrain them from repatriating all their profits. The actual money is repatriated by the foreign companies that operate in the country. Sometimes, the country records a net gain with exports earnings exceeding import costs, but these are paper gains. Because of this, the country continues to buy foreign currency to meet its import demands, with less supply of foreign exchange from its exports. This is why, for a long time, Ghana’s cedi has been depreciating against the other major trading currencies. ![]() Ghana’s reliance on exporting raw materials and importing finished products contributed to the country’s persistent demand for, and less supply of, foreign currencies. It has since added oil and gas, and some non-traditional commodities. Ghana is Africa’s top gold exporter at 138.7 tonnes. Hence the moniker.Ī century later, cocoa and gold are still Ghana’s major exports. He designed an economy to focus on the export of raw materials and importation of finished goods. Sir Gordon Guggisberg was a British empire colonial administrator in what was then Gold Coast (1919-1927). It is still very much the Guggisberg economy. They often export primary commodities and import finished products. Most countries on the continent are still far from achieving these indicators of an economy with strong fundamentals. They are well-resourced and free from civil unrest.įor decades, African countries have chalked up successes but these have not been significant enough to transform their economies. The citizens of this kind of economy have good roads, good transportation, good health, and good educational systems. That kind of economy can mobilise resources domestically, without much reliance on external support, and can even borrow at a lower cost. An economy with strong fundamentals is one that is resilient, has a well-developed exports base, is industrialised, and creates jobs.
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