Re: Cedi Appreciation – A Response to Dr. Mahamudu Bawumia

Dr. Bawumia recently questioned the NDC government's role in the cedi's appreciation. He noted they only passed their budget in March. He dismissed their early gains as luck without policy action.

Governance goes beyond budgets and contracts. It involves restoring confidence and setting clear expectations after years of economic mismanagement.

The Power of Confidence and Credibility

Markets respond to credibility, not just budgets. Since January, the new government has worked to rebuild market confidence through:
- Fiscal prudence and discipline
- Removal of punitive taxes
- A clear break from previous economic policies

Investors recognize this new chapter. The announcement of a competent team has shifted expectations positively.

Let’s Talk Lived Experience, Not Just Textbook Theory

Dr. Bawumia overlooks an important economic metric: citizens' experiences with the economy.
- Filling my tank used to cost ₵1,200; now it costs ₵1,000.
- A $1,000 plane ticket was ₵16,000; today it is ₵12,700.
- The e-levy on mobile money transactions is gone.

These changes are significant and cannot be dismissed as coincidence.

Bawumia’s Own Words Are Contradicting Him

Dr. Bawumia once said: “You can do all the propaganda in the world, but if fundamentals are weak, the exchange rate will expose you.”

Today, fundamentals are improving. The cedi reflects eight years of fiscal recklessness under the NPP era.

Why So Defensive?

If Dr. Bawumia is confident in his legacy, why downplay his successors' early wins? His record of economic collapse makes these wins more visible. When you inherit a burning house, putting out the flames is a miracle.

Policy Isn’t Always Loud But It’s Effective

Ending the e-levy is a policy change. Removing import taxes on key inputs is another policy move. Strengthening Bank of Ghana's independence shows commitment to fiscal discipline too. Choosing not to overspend in 100 days differs from past practices.

My brother's comments seem more like political lament than economic critique. As he once said, “the exchange rate has no party colours.” Right now, that exchange rate speaks volumes—quietly and confidently!

Regardless of our political views, when Ghana succeeds, we all succeed!

Written by Dr. Sangu Delle, Global Leader in Healthcare, Finance & Academia || CEO, Investor & Philanthropist