The Flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has admitted that Ghana’s economy was on the brink of collapse under the NPP administration in 2022. During a media engagement on Sunday, August 25, he acknowledged that the economic fundamentals were weakened that year, with inflation and currency depreciation both exceeding 50%.
Dr. Bawumia revealed that he was deeply concerned about the situation, fearing that Ghana was approaching a scenario similar to Sri Lanka, where economic turmoil led to mass protests. The crisis in Ghana escalated when the international financial markets closed their doors to the country due to its unsustainable debt levels. Rating agencies downgraded Ghana’s credit status to junk, forcing the government to seek assistance from the International Monetary Fund (IMF) after initially resisting advice from civil society and other political parties to do so.
By the time the government decided to approach the IMF, the economic situation had deteriorated significantly, necessitating a debt restructuring programme. This situation has contributed to the high cost of living that continues to dominate public discourse in the country.
Dr. Bawumia credited his “Gold for Oil” policy with preventing a total economic collapse. He expressed his intention to institutionalize the Gold for Oil programme to ensure the stability of the Ghanaian cedi. Additionally, he plans to establish a “Gold for Forex” system, where companies seeking large quantities of U.S. dollars would instead receive the equivalent value in gold. This, he believes, will further stabilize the currency and strengthen the economy.
