Allotey Jacobs, former Central Regional Chairman of the National Democratic Congress (NDC) has reacted to Ghanaian businessman and former President of AngloGold Ashanti Sir Samuel Esson Jonah, that Ghana is in a debt crisis despite having had significant amounts of debt cancelled a decade ago.
According to Allotey Jacobs, he disagrees with all the comments made by Sam Jonah and that he should learn from Nigerian billionaire Aliko Dangote by creating more jobs for the youth.
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“Though we cannot compare Sam Jonah to Dangote. Dangote is far richer than Jonah. He [Sam Jonah] became head of AngloGold Ashanti we all saw what he did. Dangote is making sure that Nigerians will not import rice again that’s why they closed all their borders. He is now producing over 2.3 million metric tons with Sonia farms. He is producing a lot of things in Nigeria to make sure the country is sufficient. Dangote is sponsoring many of the Nigerian youth, sponsors advert of the country on CNN and BBC. He [Sam Jonah] can also help Ghana by creating some of the jobs here.” he told Kwabena Don Prah on Happy FM’s Epa Hoa Daben show.
“Ghana currently doesn’t need criticism at this point, we must all come on board to help the nation. Even if you will criticize, it must be constructive you just don’t come and say it and later fly to South Africa. This is our country. We must all come together to help her flourish.
Sam Jonah should provide a better alternative that will make the country thrive rather than criticism. I respect him a lot but everything he said I disagree with him he supposes to help us than join us to complain,” he added
In a speech to Rotarians in Accra titled ‘Down the up escalator – Reflections on Ghana’s future by a senior citizen’, Sir Jonah stated that data available “for the first quarter of 2020, GDP grew at a rate of 4.6%, contracted to -3.2% for the second quarter and -1.1% for the third quarter, giving an average outturn of 0.2% for the three quarters of the year adding that the economy grew at the rate of 6%. At the end of the third quarter, the industry sector contracted at -3.1% while services grew at 1.9%.
“Only the agriculture sector…increased in its growth rate recording 4.5% at the end of the third quarter as compared to 3.7% for the same period in 2019.”
He stated: “This is telling us something, right? Even though government revenue exceeded the revised target for the year, expenditure also exceeded the revised target leading to the end-of-year fiscal deficit of 11.7% of GDP.
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“One of the most alarming aspects of our macroeconomic situation is the debt crisis.
“As of the end of 2020, total public debt reached GHC 291.6 billion representing 76.1% of GDP, Jonah said, adding: “A nominal increase of about GHC 149.3 Billion since January 2017.”
In 2018, he noted “the debt-to-GDP ratio was 59.1%, increased to 62.4% in 2019 and to 76.1% in 2020.
“New bonds have since been issued. The domestic debt component is 51.4% of total debt while external debt is 48.6%.”
“Of course, we all know the effect this has on access to credit by the private sector for investment. But the bigger question is how all these debts are going to be repaid,” Sam Jonah added.
Sir Samuel Esson Jonah, is the Executive Chairman of Jonah Capital, an equity fund based in Johannesburg, South Africa