Mahama government pounces on Bawumia for claiming credit for cedi appreciation 

Political Debate Over Cedi's Value

The Ghanaian cedi has recently appreciated against major currencies. This has sparked political debate. Both the ruling National Democratic Congress (NDC) and the opposition New Patriotic Party (NPP) are involved.

The NDC claims the cedi’s rise is due to its economic policies. The NPP, however, rejects this claim as unfounded. President John Dramani Mahama supports the NDC's view on currency strength.

At a Young Executive Forum in London, Dr. Alhaji Mahamudu Bawumia challenged these claims. He is the NPP’s 2024 presidential candidate and spoke during his UK “Thank You Tour.” He argued that the NDC has not implemented any effective policies for currency improvement.

Dr. Bawumia stated, “If you ask the NDC what policy led to this appreciation, they cannot name one.” He noted that the NDC only passed its first budget in March and hasn't awarded significant contracts yet.

In response, Deputy Finance Minister Nyarko Ampem dismissed Dr. Bawumia’s comments. He accused him of using familiar rhetoric without evidence during an interview on Joy FM in Accra.

Mr. Ampem emphasized that the NDC government focuses on real results rather than political showmanship. He highlighted key interventions like establishing a Gold Board as crucial for strengthening the cedi.

He reported that gold exports increased significantly from January to April 2024, reaching over $2.7 billion. Mr. Ampem also mentioned improvements from a revived IMF program that restored investor confidence.

He pointed out reduced borrowing and declining Treasury bill rates since February 2024 as tangible results driving economic confidence.

In a final remark aimed at Dr. Bawumia, Mr. Ampem urged him to reflect on past economic hardships under his tenure as Vice President.

As parties debate the reasons behind the cedi's strength, many Ghanaians hope for lasting stability regardless of credit attribution.

Cedi Appreciates by 3.9%

In related news, President Mahama announced a 3.9% appreciation of the cedi against the US dollar by April 2025. This marks a turnaround from a 19.2% depreciation in 2024.

Speaking at the Ghana-EU Business Forum in Accra, he attributed this recovery to stronger forex inflows and improved trade balances.

President Mahama noted that when his administration took office in early 2025, Ghana faced fiscal distress and high inflation levels.

He stated urgent actions were necessary to address these issues and initiate recovery efforts.

Gross international reserves improved from $8.9 billion in December 2024 to $10.6 billion by April 2025—covering nearly five months of imports.

The increase reflects enhanced export earnings from gold and non-traditional products along with timely disbursements from multilateral partners.

Inflation decreased from a peak of 25.8% in December 2024 to 21.2% by April 2025; projections aim for single-digit inflation by mid-2026.

Ghana's GDP growth reached 5.7% in 2024 due to mining, construction, and services sectors' contributions.

The Real Composite Index of Economic Activity recorded annual growth of 2.3% in March 2025 compared to just 1% during March of last year.

On fiscal discipline, President Mahama revealed a reduction in fiscal deficit from 7.5% of GDP in 2024 to an expected target of just over half that amount by mid-2025.

He encouraged European investors to collaborate with Ghana under AfCFTA across various sectors such as agro-industrial zones and green energy initiatives.

Ambassador Irchad Razaaly reaffirmed EU confidence in Ghana’s economy at this forum while emphasizing bilateral trade partnerships’ importance between regions.

This event symbolizes strong collaboration opportunities aimed at fostering business growth and job creation within Ghana’s economy.