Innovations needed to tackle dollarisation challenges, says AGI

President of the Association of Ghana Industries (AGI), Dr Humphrey Ayim Darke, has called for innovative solutions to address Ghana’s persistent exchange rate volatility.

Speaking in an interview, he urged the incoming government to prioritise policies that stabilise the cedi and boost foreign exchange inflows.

“We’re looking for bold initiatives around exchange rate management,” Dr. Darke said.

“The dollarisation of our economy is a real issue. We need a clear strategy, and we need it now.”

He proposed several ideas, including leveraging remittances and tourism to generate foreign exchange. “Look at countries like the Philippines and India,” he said.

“They have well-structured remittance policies. Ghana can do the same by exporting talent and labour while creating clear frameworks to maximize remittance inflows.”

Dr Darke also pointed to the potential of tourism as a short-term revenue booster.

“Tourism could provide immediate relief,” he suggested.

“If we anticipate a $10 billion shortfall, a solid tourism drive combined with a remittance policy could potentially cover $4 billion of that gap.”

In addition to these measures, Dr. Darke advocated targeted support for existing export companies.

“Don’t start new initiatives that take years to bear fruit,” he advised.

“Focus on companies already exporting and provide them with the interventions they need to scale up. That will bring in money more quickly.”

He cautioned, however, that managing exchange rate challenges requires a holistic approach.

“It’s not just about plugging holes,” he said.

“It’s about building a resilient economy that doesn’t depend so heavily on foreign currency.”