Expanding domestic production key to reducing unemployment – IERPP
Kwasi Nyame-Baafi, Director of the Institute for Economic Research and Public Policy (IERPP), has called for greater investment in Ghana’s productive sectors, describing it as the key to sustainable job creation and long-term economic stability.
Speaking on GHOne TV’s State of Affairs programme, Dr Nyame-Baafi said expanding the country’s productive capacity in areas such as agriculture, industry, and exports was essential to tackling youth unemployment and supporting sustainable economic growth.
He warned that currency appreciation without corresponding growth in domestic production could negatively affect local industries.
Using poultry production as an example, he explained that a stronger cedi could make imported poultry products cheaper than locally produced ones, reducing demand for domestic goods and forcing local producers to scale down operations.
According to him, reduced production levels could eventually lead to job losses within the sector.
Dr Nyame-Baafi stressed that long-term economic stability should be driven by increased production rather than temporary monetary measures.
“We should be investing in the economy to make sure that our productive capacity is expanding, and that’s what will create the jobs for the youth,” he stated.
He also criticised policies that focus mainly on reducing inflation by suppressing demand, arguing that such strategies may provide short-term relief but are not sustainable over time.
The economist further cautioned against relying on measures such as selling gold reserves to stabilise the economy, warning that such interventions could not continue indefinitely.
“How many times can we keep selling our gold reserves? In about two or three years, there will be no more gold reserves to sell,” he said.
Dr Nyame-Baafi added that although some macroeconomic indicators may suggest stability, many Ghanaians continue to feel the effects of economic hardship, particularly through unemployment and the high cost of living.
He therefore urged policymakers to prioritise long-term structural reforms over short-term economic measures.
According to him, strengthening domestic production would not only create employment opportunities for the youth but also help reduce inflation gradually in a sustainable manner.
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