The recent surge in the value of the Ghanaian cedi against major international currencies has sparked a wave of political debate, with both the ruling National Democratic Congress (NDC) and the opposition New Patriotic Party (NPP) laying claim – or casting doubt – on the reasons behind the currency’s performance.
While the NDC touts the cedi’s appreciation as a direct result of its economic interventions, the NPP has dismissed this assertion as baseless.
The President of the Republic, John Dramami Mahama, is on record to have attributed the strength of the local currency to his administration.
But speaking at the Young Executive Forum in London – a key NPP Diaspora group,known for its financial support – NPP’s 2024 presidential candidate, Dr Alhaji Mahamudu Bawumia challenged the NDC’s claims.
As part of his UK “Thank You Tour,” Dr. Bawumia argued that the NDC has yet to implement any concrete policy capable of influencing the currency markets positively.
“If you ask the NDC to point out exactly what policy they have implemented that has led to the cedi’s appreciation, they cannot mention a single one,” Dr Bawumia asserted.
According to him, the NDC passed its maiden budget only in March and has yet to award or pay for any significant contracts that would affect macroeconomic indicators such as the currency’s strength. He described the government’s self-congratulations as premature and unfounded.
However, the Deputy Minister for Finance, Mr. Nyarko Ampem, swiftly rebutted Dr. Bawumia’s claims. In an interview on Accra-based Joy FM, the Deputy Minister accused the former Vice President of resorting to his familiar rhetoric without evidence.
“I’m not surprised by the statement made by the former Vice President. A man known for sloganeering during his time in office would naturally make such comments,” Mr. Ampem said.
He insisted that the NDC government is focused on delivering tangible results, not engaging in political showmanship. He outlined key interventions that have contributed to the cedi’s recent strength, citing the establishment of the Gold Board as a turning point.
“We told Ghanaians the Gold Board would make a difference. From January to April 2024, gold exports stood at around $860 million. Today, thanks to our structured approach, we’ve exported over $2.7 billion worth of gold. That is not talk – that is delivery,” he emphasised.
Mr. Nyarko Ampem also credited the revival of a previously stalled IMF programme with restoring investor confidence and macroeconomic stability.
He noted that borrowing has reduced and Treasury bill rates have consistently been declining since February 2024.
“These are tangible results, not slogans. And that is what is driving the growing confidence in our economy,” he added.
In a final swipe at Dr. Bawumia, the Deputy Minister urged him to reflect on the economic hardships Ghanaians endured during his tenure as Vice President.
“The difference is obvious. Lives are becoming bearable again and that is what matters most,” Mr. Nyarko Ampem concluded.
As political parties continue to debate the root cause of the Cedi’s strength, many Ghanaians are hoping that the stability lasts, regardless of who takes the credit.
Cedi Appreciates by 3.9% as at April 2025 -Mahama
In a related development, President John Dramani Mahama has announced that the Ghanaian cedi has appreciated by 3.9% against the US dollar by the end of April 2025 – a significant turnaround from the 19.2% depreciation recorded in 2024.
Addressing delegates at the opening of the 2025 Ghana-EU Business Forum in Accra, the President credited the Cedi’s recovery to “stronger forex inflows, improved trade balances and growing investor confidence,” further citing a broader trajectory of economic rebound following years of fiscal stress.
“When this Administration assumed office in early 2025, Ghana was emerging from a period of fiscal distress, high inflation, and declining investor confidence. We had to take urgent steps… These bold and targeted interventions are beginning to witness the early signs of economic recovery and renewed momentum,” the President said.
He noted that gross international reserves improved significantly from $8.9 billion in December 2024 to $10.6 billion by April 2025, representing close to five months of import cover.
The increase, he said, reflects enhanced export earnings, particularly from gold and non-traditional exports, alongside timely disbursements from multilateral partners.
Inflation, which had peaked at 25.8% in December 2024, fell to 21.2% in April 2025. “We are projecting to achieve the single-digit inflation trajectory by the middle of 2026,” the President affirmed.
He also pointed to resurgence in economic activity, with Ghana’s GDP growth reaching 5.7% in 2024 driven by mining, construction, and the service sectors.
The Real Composite Index of Economic Activity (CIEA) also recorded an annual growth of 2.3% in March 2025, up from 1.0% during the same period in 2024.
Speaking on fiscal discipline, President Mahama disclosed that Ghana reduced its fiscal deficit from 7.5% of GDP in 2024 to 6.4% in the first half of 2025, and is on track to meet the 2025 target of 3.1%. “These figures, though early in the year, are clear signs of a disciplined and inclusive economic recovery,” he said.
The President used the platform to encourage European investors to deepen collaboration in key sectors of Ghana’s economy under the Africa Continental Free Trade Agreement (AfCFTA).
He identified agro-industrial zones, green energy, pharmaceuticals, digital innovation, and transport infrastructure as critical areas for joint investment.
“With a population of over 1.3 billion people and a combined GDP of more than $3 trillion, the AfCFTA presents a historic opportunity. I invite EU investors to explore opportunities in agro-processing, renewable energy, pharmaceuticals, digital infrastructure and smart transport systems,” he said.
Emphasising Ghana’s readiness for business, the President assured investors of a transparent and predictable policy environment.
“We are restoring confidence in our public procurement systems, enforcing contract sanctity, and protecting investor rights,” he stressed.
The European Union (EU) Ambassador to Ghana, Irchad Ramiandrasoa Razaaly, also reaffirmed the EU’s confidence in Ghana’s economic prospects, declaring the country “ready for business again” and emphasised the EU’s commitment to deepening bilateral trade and investment partnerships.
Ambassador Razaaly described the forum as a meaningful “gesture” of the EU’s belief in Ghana and a platform to strengthen collaboration between businesses from both regions.
“This is a great gesture that we have both undertaken – from the European Union and the Ghanaian side – to create a space for fostering business conversations, encouraging deals and possibly creating more jobs, supporting economic growth and diversifying the Ghanaian economy,” the Ambassador said.
The EU envoy noted that the organisation of the forum was a direct response to President Akufo-Addo’s recent declaration that “Ghana is ready for business again,” adding that the EU not only believes in Ghana’s economic potential, but also has a growing appetite for collaboration across multiple sectors.
“Beyond trade and the economy, our partnership is anchored in shared values – our commitment to a rules-based multilateral order, regional security and stability, and the creation of new perspectives for the youth, especially Ghanaian entrepreneurs,” he said.
Ambassador Razaaly also acknowledged the strong support from the EU headquarters in Brussels, particularly the participation of Madame Ferrand, Deputy Director-General for International Partnerships, who he said symbolises the EU’s commitment to not just economic, but also security and development cooperation.
“This forum is not something we do every year,” the Ambassador noted. “It is a gesture that underscores our belief in this partnership – one that we are committed to nurturing.”
He also recognised the support of other diplomatic partners, especially ambassadors from the United States, whose collaborative efforts have helped facilitate stronger international ties and investment opportunities in Ghana.
By Richard Owusu-Akyaw & Jennifer Ambolley
