Reckless Behaviour of Rating Agencies Caused Ghana
President Nana Akufo-Addo has said that Ghana’s recent economic crisis was worsened by the “reckless behaviour” of rating agencies that were downgrading the country’s economy and succeeded in shutting Ghana out of the capital market.
He described Ghana’s economic situation as one of the most difficult periods in its post-Independent history, which was almost destroyed as a result of the irresponsible conducts of these rating agencies.
“I can confidently say, as the AU champion for financial institutions and a leader of a country which recently has to deal with one of the most difficult periods in its post-Independent history; difficulties which were exacerbated by the reckless behaviour of rating agencies that engaged in procyclical downgrades; shutting Ghana out of the capital market and turning a liquidity crisis into a solvency crisis,” he said.
He commended the immeasurable role played by the Afrexim bank in the turbulent moments of the country’s economy, stating that their timely support helped Ghana to navigate.
“Afrexim bank under its countercyclical response mechanism provided a timely support to help Ghana navigate the macroeconomic management challenges worsened by Russia’s aggression of Ukraine in an orderly manner when suddenly we realised we were alone,” the President recalled.
President Akufo-Addo made this remark while speaking at the 30th Annual Meeting of the African Export-Import Bank (Afrexim bank) in Accra on Monday, June 19, 2023.
The 30th annual general meeting of the African Export-Import Bank opened in Accra on Sunday, June 18, with speakers highlighting the need for Africa to boost intra-African trade and integration in the face of the challenges resulting from the impact of the global COVID-19 pandemic and the adverse economic challenges due to the Ukraine crisis and other global conflicts.
The Afrexim bank annual meeting (AAM2023), which will end on 21 June, is also being held to celebrate the 30th anniversary of the establishment of Afrexim bank.
Afrexim bank is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa.
African Economies Not Transforming
In a related development, the founder and president of the African Centre for Economic Transformation (ACET), Dr. K.Y. Amoako, has said African leaders need to dialogue with their citizens, understand the issues and collectively proffer solutions selflessly.