Dr. Frank Bannor, Development Economist and Head of Research at Danquah Institute
By Bright Philip Donkor
Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute has commended Vice President Dr. Mahamudu Bawumia for his exceptional economic leadership, following Ghana’s impressive 6.9% economic growth in the second quarter of 2024 – the fastest rate in five years.
Speaking during an interview on Movement TV, Dr. Bannor said this remarkable achievement highlights Dr. Bawumia’s unmatched expertise in economic management. “When it comes to economic management, no one can surpass Dr. Bawumia. His leadership has been transformative, and this growth rate is evidence of his visionary policies. His ability to navigate and manage the economy even during challenging times shows why he is an economic prophet,” Dr. Bannor stated.
Surpassing G-T economies
The Economist noted that the country’s performance stands out, particularly when compared to some of the largest economies both in Africa and globally. He mentioned that South Africa, often recognized as one of Africa’s leading economies, posted a modest 0.4% growth rate during the same period. Similarly, he cited global economic heavyweights such as the United States, Germany, and South Korea saw either slow growth or economic contractions.
“The U.S. had a growth rate of around 0.4%, while Germany and South Korea faced contractions of -0.1% and -0.2% respectively in the second quarter of 2024. Yet here we are, with Ghana surging ahead with 6.9%. This proves that Dr. Bawumia is doing something right,” he indicated.
Dr. Bannor, who is also a lecturer at GIMPA Business School, pointed out that this level of economic performance was a testament to the strength and foresight of Ghana’s economic policies, which had been focused on leveraging the country’s key sectors for sustained growth.
“Look at the global stage…These are major economies—countries that can’t be underestimated—yet none of them recorded growth above 2% in the second quarter of 2024. Ghana, on the other hand, is growing at a rate we haven’t seen in five years,” he added.
Drivers of the economic growth
Using data from the Ghana Statistical Service (GSS), Dr. Bannor outlined the critical factors behind Ghana’s economic performance. “Ghana’s industry sector recorded a robust 9.3% expansion, primarily driven by mining and quarrying activities,” he explained.
The mining sector, particularly gold, has been a cornerstone of Ghana’s economy. According to Dr. Bannor, the gold sector experienced its third consecutive period of growth, expanding by 23.6% during the quarter. He further noted that the first quarter of 2024 saw a growth rate of 6.8%, highlighting the sector’s consistent performance.
Dr. Bannor emphasised the importance of the industry sector in job creation, stating that it absorbs approximately 18.86% of the Ghanaian workforce. “Nearly 19% of Ghana’s employment is tied to the industry sector. So, when the sector is growing, it means that skilled laborers are finding jobs, which in turn helps expand the economy even further,” he noted.
Ban on mining?
However, Dr. Bannor also cautioned against calls to ban mining in Ghana, stressing that those advocating such a move do not fully understand the country’s economic structure. “Dr. Bawumia recognizes the significance of small-scale mining, which is the backbone of the economy. That’s why he plans to establish a Minerals Development Bank, should he be elected president in December,” Dr. Bannor said.
He explained that this bank would provide crucial financial support for mining projects across the country, ensuring the sector continues to contribute to Ghana’s economic growth. “Dr. Bawumia’s vision also includes addressing the issue of foreign mining corporations repatriating all of their earnings,” Dr. Bannor added.
He indicated the potential of Bawumia’s Gold Purchasing Programme, which aims to ensure responsible mining while helping to solve Ghana’s perennial exchange rate challenges. Additionally, Dr. Bannor pointed out the services sector as another major contributor to the country’s growth. The sector saw a notable expansion of 5.8% in the second quarter, compared to 3.2% in the first quarter.
“The services sector encompasses communication, online business, wholesale and retail, restaurants and hotels, banking, finance, insurance, real estate, and more. It is the largest employer in Ghana, generating about 41.39% of total employment,” Dr. Bannor mentioned.
Agric sector
He mentioned that the agriculture sector also showed positive growth, rising by 5.4% in the second quarter, up from 4.7% in the first quarter. However, Dr. Bannor highlighted a significant challenge within this sector—the ongoing contraction of the cocoa industry.
“The cocoa sector, a critical component of Ghana’s agricultural exports and a global leader in cocoa production, has now contracted for the fourth consecutive quarter, shrinking by 26.2%,” he said. This decline has been attributed to several factors, including the impacts of climate change, adverse weather conditions, and disease outbreaks affecting cocoa plants.
Despite the challenges facing the cocoa sector, Dr. Bannor lauded the success of the government’s Planting for Food and Jobs (PFJ) programme. “While cocoa production is dwindling, other PFJ crops such as cashew and rice are driving the agriculture sector’s growth. PFJ is a resounding success and continues to yield positive results,” he stated.
Dr. Bannor further expressed confidence in Ghana’s economic trajectory, forecasting a stable 5% general economic growth rate by the end of the year. “If we continue on this path, we will surpass the economic predictions made by the IMF, World Bank, and Bloomberg. Ghana’s economy is poised for sustained growth,” he added.
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