Government should reverse benchmark discount and support local industry, Economist
Reversal of discount would help local industries grow, Prof Osei-Assibey
The Dean of International Programmes at the University of Ghana, Prof Eric Osei-Assibey, has said government was wrong in deciding to suspend the reversal of the benchmark discount policy.
Speaking on Asaase Radio’s Townhall Talk show, Prof Osei-Assibey said reversing the benchmark discount policy and empowering local production of products under the benchmark was the best way to go.
This, according to him, would not only break the country's over-reliance on imports but would go a long way to stabilize the country’s currency.
“In my view, it is more beneficial for the country to restore this benchmark value policy and make sure that it empowers domestic production to produce these products, import-substitution, not only import substitution to reduce your import bills, but also having the capacity to export, to increase your foreign currency revenue to shore up your reserve,” he was quoted by asaaseradio.
The dean further stated that although stakeholders in the import value chain were complaining about the reversal of the discount, the benefits of removing the discount far outweigh the benefit of retaining it.
He, therefore, urged the government to, as soon as possible, re-implement the reversal of benchmark discount which it did on January 4, 2022, and later suspended after cries by some stakeholders.
“Removing it is almost like counterproductive. The other side will make noise, you will have immediate hike in prices, but that will not be sustained.
“So, the benefit is much wider than the noise that others are making that it is going to increase inflation, yes but inflation has to be persistent, the prices will increase but if you are able to produce the toilet tissue here and the prices are good, why will people go out there to import,” Prof Osei-Assibey said.
“Prices will reduce, we will generate employment for your people, you will generate revenue and your economy will be more prospering than kow-towing to this pressure, …because in my view it was uncalled for in the first place,” he added. Read Full Story
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