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Ghanaian President John Mahama has hailed faster growth, lower inflation and a stronger currency as signs of recovery, using his first press conference since taking office to declare his “reset agenda” on track.
The briefing on Wednesday came hours after the national statistics agency reported that the economy expanded 6.3% in the year to August — the fastest pace in nearly a year. Inflation also fell to its lowest level in almost four years.
Since Mahama assumed office on Jan. 7, Ghana’s cedi has gained 21%, ranking among the world’s best-performing currencies.
“I take pride, not only in the clear signs of recovery and stability, but in the direct relief Ghanaians are experiencing,” Mahama said at the presidential villa in Accra.
Ghana is emerging from its worst economic crisis in decades, which saw it default on debt payments in 2022 and lose access to global capital markets. That collapse forced the West African nation to seek a $3 billion International Monetary Fund bailout and restructure more than $35 billion of public debt.
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While investor confidence has begun to return and the country is current on restructured obligations, Mahama signalled caution.
“I would not favor a quick return to the international capital market,” he said. “We should consolidate the economy first before considering external financing.”
The IMF program, due to end in December pending review, requires Ghana to swing from a 3.4% budget deficit in the first half of 2024 to a 1.5% primary surplus — a target Mahama said the economy is “sure” to achieve. The government also plans to resume domestic bond sales later this year to refinance existing debt.
Mahama, who won a decisive election on promises to “reset” the economy, enjoys strong legislative backing after his National Democratic Congress secured 67% of parliamentary seats.
Still, risks remain. Mahama acknowledged the cedi may not have found its fair value: “The cedi was undervalued at 16 (to the dollar) and is probably overvalued at 10, but somewhere between there we have the real value.”
He also confirmed that Ghana’s preferential trade agreement with the US under the Africa Growth and Opportunity Act (AGOA) is unlikely to be renewed. The accord, which granted duty-free access for some exports, expires this month after President Donald Trump’s administration imposed a 15% tariff.
“AGOA is technically dead,” Mahama said. “It’s an incentive for us to export more to the Chinese market.”
