The High Street Business

Dr. John Kwakye Proposes ‘DOGE’ System to Curb Government Waste in Ghana

Head of Research at the Institute of Economic Affairs (), Dr. John Kwabena Kwakye, has called for the establishment of a Department of Efficiency (DOGE) in , similar to the model recently introduced in the United States under President ‘s influence.

In a post on X, Dr. Kwakye suggested that such a system could help Ghana tackle excessive government spending.“Maybe Ghana should establish the Trump/ type of Department of Government Efficiency (DOGE) to cut the huge waste in government spending,” he wrote.

What is DOGE?

The Department of Government Efficiency (DOGE) is a newly proposed initiative in the United States aimed at reducing wasteful government expenditures. The concept, strongly backed by tech billionaire Elon Musk, aligns with efforts to streamline public sector operations and eliminate inefficiencies. The underlying goal is to cut down government costs by reducing redundant roles, optimizing resources, and leveraging technology for improved service delivery.

However, the implementation of DOGE in the U.S. has sparked significant debate. Critics argue that while cost-cutting is essential, the approach could lead to mass layoffs and disrupt public services. Some government workers in the U.S. have already been asked to voluntarily resign in exchange for eight months of salary, a move designed to encourage workforce reduction.

Implications for Ghana

Dr. Kwakye’s call for a similar system in Ghana raises key considerations, particularly in the context of the country’s already high rate. Ghana has been grappling with rising joblessness, especially among the youth, and implementing a policy that prioritizes cost-cutting through workforce reductions could worsen the situation.

While government inefficiency remains a concern, with reports of bloated public sector employment and excessive administrative costs, any approach to streamlining operations must be carefully structured to balance fiscal responsibility with social impact. A drastic reduction in public sector employment without adequate measures to absorb affected workers into other sectors could exacerbate economic hardships. To reduce government expenditure, President has already put out a communique through Chief of Staff Julius Debrah, that ministers will not travel out of the country on first class, there has also been termination of appointments of people employed after December 7, which has already triggered heated arguments in country, with some questining the basis of the termination. Former majority leader of the (NPP), also added his voice to the argument, warning of impeachment over the dismissals.

Some sectors of public service like the sector, specifically nurses, affected by the dismissal are already hinting at a action.

DOGE’s reception however in the U.S.A, has been mixed, with concerns about its effectiveness and fairness. If Ghana were to adopt a similar system, it would need to tailor the model to suit the country’s unique economic and social landscape, ensuring that any reforms do not disproportionately affect the livelihoods of citizens.

A Balanced Approach Needed

Dr. Kwakye’s proposal reflects a broader discussion on the need for government expenditure control, but any attempt to introduce a DOGE-like system in Ghana must be approached with caution. While reducing wasteful spending is crucial, reforms should be structured to avoid deepening unemployment and worsening economic conditions. A comprehensive strategy that includes alternative employment solutions, retraining programs, and a phased approach to government restructuring would be necessary to ensure a sustainable and inclusive implementation.

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The High Street Business

African Leaders’ Spirited Demands for Reparative Justice from the West Faces a Pushback

The ongoing efforts by African leaders demanding reparative justice from the West has faced a pushback from a renowned Ghanaian economist.

The Director of Research at the (IEA), Dr. John Kwakye believes the spirited efforts for compensation from the West is a just a waste of time and resources.

This opposition from the economist was occasioned by ‘s latest call for African leaders to intensify actions in seeking for the reparation. Mr. Mahama who was speaking at the Opening Ceremony of the 38th Ordinary Session of the African Union in Ethiopia, Addis Ababa called for concrete steps and decisive actions to drive home the demand.

“The force extraction of wealth, including minerals, cash crops, and labor, deprived African nations of the capital and infrastructure needed for ,” argued at the AU session.

Originators of reparative justice believe that the injustices of the colonial era perpetuated by the West through the slave and other forms of exploitation are a robbery of the African continent. The forced extraction of natural and human resources and the disruption of social systems continue to have a lasting economic impact on African nations.

They therefore demand that Africans be compensated by the West citing payments made to the Holocaust survivors and victims as precedents.

The call for reparations has gained momentum in recent years, with leaders from the , the Caribbean, and other affected regions making formal demands for compensation. The CARICOM (Caribbean Community) has been actively pursuing legal avenues to secure financial restitution for the descendants of enslaved Africans.

Countries like Barbados and Jamaica have also demanded direct payments and cancellations as forms of reparative justice.

But Dr. John Kwakye believes the demands, especially by African leaders are a misplaced priority. Although he admits the exploitation and the harm committed by the West on Africa, he is convinced that the continent still has the opportunity to secure its economic future instead of waiting for compensation which may or may not materialize.

He is rather calling for the protection of the remaining resources from the West which is still being siphoned through multinational corporations.

“While colonization robbed Africa of huge amounts of resources, l don’t believe that we need to waste too much time on reparation. Let’s rather protect the equally huge resources that we have now from further foreign exploitation, which is still going on,” the economist who once worked with the () indicated in an post cited by The High Street Journal.

As discussions on reparative justice continue, Dr. Kwakye’s stance adds an important dimension to the debate. He is rather challenging African leaders to look inward and take control of the continent’s destiny rather than relying on restitution from former colonial masters.

Whether or not reparations are eventually granted, his stance underscores the urgent need for Africa to take decisive action in protecting and utilizing its resources for the benefit of its people.

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The High Street Business

No Extension for Now: President Mahama Commits to Completing Ghana’s $3 Billion IMF Programme

In a decisive move to maintain , President John Dramani has ruled out any immediate extension of Ghana’s $3 billion Extended Credit Facility (ECF) with the ().

Speaking at the Munich Security Conference in an interview with Bloomberg TV, the President reaffirmed his administration’s commitment to implementing the current programme as planned.

“We’ve not talked about an extension of the programme. We are determined to continue with this programme,” President Mahama stated. “If it’s necessary to look at additional funds or to extend the programme, we’ll look at it, but for now, we are determined to continue on this trajectory.”

His remarks underscore the ‘s focus on without seeking additional support in the interim.

During discussions with the IMF, the government emphasized rationalisation, management, and fiscal prudence as key priorities to sustain economic progress. President Mahama reiterated that these measures are essential for Ghana’s long-term economic stability, ensuring the nation reaps the full benefits of the ongoing programme.

Ghana’s $3 billion ECF programme, which began on May 17, 2023 under the previous Nana administration is designed to support economic recovery and over three years.

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The High Street Business

WAPCo Shutdown Causing Power Outages, Businesses Affected by Shortfall

The West African Gas Pipeline Company () maintenance shutdown is beginning to bite, leading to intermittent power outages that are disrupting business operations across the country. The routine maintenance, which started on February 5 and is expected to last until March 2, 2025, has left the country short of sufficient power to meet demand, particularly during peak hours.

A significant number of power plants that rely solely on gas have been left idle due to the lack of gas supply. ‘s checks reveal that the power supply shortfall amounts to about 1,400 megawatts, as gas-dependent plants such as Karpowership, Amandi, one unit of Asogli, Centi, and some plants owned by the Volta River Authority () are unable to generate power without gas.

WAPCo is currently undertaking maintenance on the gas pipeline that transports natural gas from Nigeria to . This routine maintenance had been delayed multiple times, but once it commenced, gas supply to thermal plants in Tema from Nigeria, along with the reverse flow of gas from Takoradi to Tema, ceased. As a result, the deficit in power supply has led to power outages, especially during peak times, affecting businesses’ ability to operate smoothly.

The Ghana Grid Company Ltd (GRIDCo) had previously assured the public that measures would be put in place to prevent widespread power outages, commonly referred to as “,” during the maintenance period. However, the reality has proven otherwise, as not all power plants can switch to alternative sources.

In a joint statement, GRIDCo and the Ltd () confirmed that, under the and ‘s leadership, significant volumes of liquid fuel had been secured to power key plants in Tema as a stopgap measure. However, the liquid fuel solution is only viable for some plants, leaving others that are solely dependent on gas unable to function, leading to a significant power supply shortfall.

Industry experts have expressed concern that the situation could worsen if the rains do not fall in sufficient amounts to replenish water levels at the Akosombo and Bui dams, which are key contributors to the current country’s power generation.

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