Seth Terkper calls for greater use of diaspora remittances to drive Ghana's development

Presidential Advisor on the Economy and former Finance Minister, Seth Terkper, has called for a comprehensive assessment of diaspora remittances to ensure they play a more strategic role in Ghana's economic transformation and national development.

He said remittances from Ghanaians living abroad have become an increasingly important source of financing for the economy, particularly at a time when Ghana and many African countries are facing reduced access to concessional loans and grants amid changing global financing conditions.

Speaking at the launch of Region 17 under the theme, "Harnessing the Power of the Diaspora to Transform Ghana's Future," Mr Terkper noted that countries transitioning into higher-income status must rely more on domestic resource mobilisation and alternative sources of development financing.

He stressed that Ghana should move beyond viewing remittances solely as funds sent home to support families and instead recognise their broader contribution to economic growth.

"We need to diagnose the nature of remittances and how they can benefit Ghana's development," he said.

According to Mr Terkper, diaspora remittances already support key sectors of the economy through investments in housing, business development, entrepreneurship and the transfer of skills, knowledge and technology. He said with the right policy framework, these resources could make an even greater contribution to national development.

He explained that the evolving global financial landscape demands stronger domestic financing mechanisms, as countries can no longer depend heavily on external development assistance.

"As countries advance economically, they are expected to generate more of their own resources and establish sustainable systems for financing development," he noted.

Mr Terkper, however, acknowledged that Ghana's recent debt crisis and sovereign default had weakened investor confidence, underscoring the need for consistent economic policies and sound fiscal management to restore trust among both local and diaspora investors.

He also pointed to the experience of the so-called African Lions, saying several countries on the continent have demonstrated that sustained economic growth is achievable despite global economic uncertainties.

He expressed confidence that Ghana could achieve similar progress by effectively harnessing its human capital, expanding diaspora engagement and creating an enabling environment for investment.

The launch of Region 17 formed part of broader efforts to strengthen ties with Ghanaians living abroad and explore ways to leverage their expertise, networks and financial resources to accelerate the country's socio-economic development.