Dr. George Domfe, Economist at the Centre for Social Policy Research, has described President John Dramani Mahama’s warning about the escalating US–Israel–Iran tensions as timely and in the right direction.
According to Dr. Domfe, Ghana’s economy has historically been vulnerable to external shocks, particularly due to its structure and dependence on imports.
He lamented Ghana’s long-standing practice of exporting crude oil while importing refined petroleum products, describing the situation as economically disadvantageous.
“We sell our crude oil and import finished products, which is very bad,” he stressed.
In a zoom meeting on Kessben TV’s Digest, the economist also expressed concern over what he described as the country’s failure to fully utilize its agricultural potential.
“God gave us fertile land to help us, but we are not making good use of it. We prefer helping foreign countries to develop and stabilize their economy to the detriment of ourselves,” he noted.
Touching on the possible impact of the ongoing Middle East conflict on fuel prices, Dr. Domfe warned that if hostilities persist into the next pricing window around March 15, the National Petroleum Authority (NPA) may have no option but to approve upward adjustments in fuel prices in agreement with Oil Marketing Companies (OMCs).
He emphasized the need for Ghana to strengthen local production and refine more of its petroleum products domestically to reduce exposure to global market volatility.
His comments come amid growing concerns that prolonged instability in the Middle East could trigger spikes in global crude oil prices, with ripple effects on oil-importing economies such as Ghana.
