This is Tsatsu Tsikata’s bold solution to tackle cedi depreciation crisis

Ghanaian legal expert Tsatsu Tsikata has suggested a plan to address the ongoing cedi depreciation problems.

At the 14th Leadership Dialogue hosted by the Centre for Social Justice (CSJ), Mr. Tsikata introduced his “foreign exchange footprint” concept.

This approach aims to strengthen Ghana’s economy and reduce the impact of the Cedi’s devaluation by leveraging individual contributions to foreign exchange.

The former Chief Executive of the Ghana National Petroleum Corporation (GNPC) started his presentation by highlighting critical issues facing Ghana, such as brain drain and the ongoing depreciation of the cedi.

Regarding the cedi’s unabated decline over the years, Mr Tsikata highlighted that remittances from Ghanaians living abroad often exceed the revenue from mineral exports. This emphasizes the crucial financial impact of these global connections.

Tsikata’s proposal centres on changing how Ghanaians approach their consumption of foreign goods.

He introduced the idea of a “foreign exchange footprint,” similar to the concept of a carbon footprint.

“We need to assess our individual foreign exchange footprint,” he explained.

“By evaluating our reliance on imported products and finding opportunities to choose local alternatives, we can lessen our dependence on foreign goods and boost local production.”

The depreciation of the cedi increases inflation and diminishes business capital, which further deteriorates the country’s economic situation.

$1 currently sells for 16 Ghana cedis as of the close of business on August 30.

He pointed out that while many young professionals are moving abroad for better opportunities, this trend also offers an opportunity to harness the economic potential of the Ghanaian diaspora.

“The diaspora and indeed Africans beyond Ghana have a unique relationship with the country that can be economically beneficial,” Mr. Tsikata said.