A banking consultant, Dr. Richmond Atuahene, says the incoming President, John Dramani Mahama, must set up a remittances unit at the Central Bank to track Ghana’s foreign remittances.

Speaking on GHOne TV, Dr. Atuahene disclosed that the figures on Ghana’s remittances are significant, but very little passes through the banking sector.

According to him, if the incoming administration focuses on the remittance sector, the nation will avoid borrowing from the World Bank or begging the International Monetary Fund (IMF) for US$3 billion.

“The first thing I want to advise the incoming President is that he must strengthen the remittance system or even create a new unit at the Central Bank. For instance, Bangladesh tracks 95% of remittances through its banking system, while in Ghana, we only track about 50%. The other 50% does not go into the banking system,” Dr. Atuahene explained.

“In 2023, the World Bank reported US$4.7 billion in remittances, but we only tracked US$2.8 billion, leaving US$1.9 billion unaccounted for. Previously, when the total remittance was US$4.2 billion, we tracked only US$2.1 billion. Those funds are lost. However, if we implement a strong tracking system, we will be able to capture more of the remittances,” he stated.

Dr. Atuahene continued, “Once we are able to track remittances properly, it will help manage the economy, stabilize the cedi, and reduce inflation.”

The banking consultant also advised President-elect John Mahama to assemble a team of technocrats who will help devise strategies to finance the nation’s substantial debts owed to contractors.

“He must appoint people who understand microeconomic issues to help him. This will be a significant advantage for him. The next challenge will be financing the debts, including the US$31 million owed to contractors and energy sector debts,” he added.

“His Excellency must form a team like the one in place in 2010. They need a credible arrears repayment plan so that, within three or four years, the debts can be cleared, without creating new ones. If this is done, the challenge becomes surmountable. With the right brains and technical people, and if they are allowed to help, they can achieve a lot in four years.”

“Even remittances alone will be bigger than the IMF loan. If we track the remittances properly, we will not need to beg for US$3 billion,” Dr. Atuahene concluded.

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