Withdraw Stabilisation and Heritage funds from abroad, it’s giving us peanut – Economist

Economist Dr. Adu Owusu Sarkodie, is calling for the withdrawal of the over one billion dollars Heritage and Stabilisation Funds invested overseas.  

According to him, these funds have generated a paltry 2% return on investments, which he describes as not good enough.

Speaking to Joy Business, Dr Sarkodie said the funds should be invested in Ghana and the returns used to finance infrastructural projects.

“Per my checks, these two funds [Heritage and Stabilisation funds] have accumulated over $1 billion  and this amount of money have been invested outside the country earning only 2% nominal inflation rate. In cases where the inflation rate is higher than the 2%, it means we are earning negative real interest rate.”

“Meanwhile, the government of Ghana goes to the same foreign capital market to borrow at 7%, 6%, 8%, 9% percent”, he stressed.

He appealed to the government of Ghana and Parliament to revise the act of parliament and allow the government to bring these funds home for reinvestment.

“It is my humble appeal that the government of Ghana together with the parliament of Ghana to revise their notes and then pass a law or revise the act of parliament and  allow the government to withdraw the over one billion dollars Heritage Fund and Stabilization Fund to be brought home and it can be invested here.

He proposed ways that the funds can be invested including the government borrowing from that fund in dollars and paying 5% or 6% or an agreed rate and the investment in infrastructure such as highways and railways.