Economist Professor Lord Mensah has expressed concern that ongoing developments in Ghana’s parliament could exacerbate investor uncertainty regarding the country’s economic direction.
He highlighted the importance of timely approval of critical fiscal policies, which could be delayed by the ongoing dispute between the National Democratic Congress (NDC) and the New Patriotic Party (NPP) over who holds the majority in parliament. According to Prof. Mensah, such delays could send negative signals to investors and businesses looking to operate in Ghana.
“Parliament plays a crucial role in approving expenditure and revenue lines. If the current political power shift results in delays or unresolved issues, the investor community will likely interpret it as a bad signal,” he cautioned.
Prof. Mensah emphasized that political uncertainty, which clouds the future economic outlook, is unsettling for investors. He noted that time is a key factor in investment decisions, and delays in passing fiscal policies could undermine investor confidence.
“Delays will impact their decisions on whether to invest in Ghana or look elsewhere. Under a democratic system, timelines are critical, and we are approaching November, when the budget for the coming year needs to be finalized,” he said.
Using the upcoming November budget as an example, Prof. Mensah warned that any delays in its presentation could negatively impact the next government.
“If the process is derailed, it could affect committee compositions and next year’s budget. From there, the uncertainty would only continue,” he concluded.
