The Presidential Advisor on the Economy and a former Minister of Finance, Seth Terkper, has called for a deeper assessment of diaspora remittances to ensure they contribute more directly to national development and economic transformation.
Mr Terkper said remittances from Ghanaians abroad have become an important source of financing for the economy, especially as Ghana and other African countries face changing global financing conditions and gradually lose access to concessional loans and grants.
Speaking at the launch of Region 17 under the theme “Harnessing the Power of the Diaspora to Transform Ghana’s Future”, Mr Terkper said countries moving into higher income classifications must increasingly rely on domestic resources and alternative financing options to support development.
He said Ghana must begin to look beyond the traditional understanding of remittances as money sent mainly to support families and examine their wider economic value.
“We need to diagnose the nature of remittances and how they can benefit Ghana’s development,” Mr Terkper said.
According to him, diaspora funds contribute to the economy in several ways, including housing development, business creation, investment activities and the transfer of skills and products into the country.
He noted that these resources could play a bigger role in supporting economic transformation if policies are designed to encourage more productive use of diaspora capital.
Mr Terkper said the changing global economic environment required Ghana to develop stronger domestic financing mechanisms as international support becomes less accessible.
He explained that as countries progress economically, they are expected to mobilise more internal resources and build sustainable systems for financing development.
The Presidential Advisor on the Economy, however, acknowledged that Ghana’s recent debt challenges and subsequent defaults affected investor confidence and highlighted the importance of maintaining policy credibility.
He stressed that restoring confidence would require consistency in economic management and policies that encourage both domestic and diaspora investors.
Mr Terkper also drew lessons from the rise of the so-called African Lions, saying some African economies had demonstrated that strong economic growth was possible despite difficult global conditions.
He argued that Ghana could similarly position itself for transformation by leveraging its human capital, diaspora resources and domestic economic opportunities.
The launch of Region 17 focused on strengthening engagement with the Ghanaian diaspora and exploring ways to use diaspora networks, expertise and financial resources to support national development.
