The New Patriotic Party (NPP) has mounted a spirited defense of its economic record in government, maintaining that Ghana’s economy is on a strong recovery trajectory, countering criticisms from government of economic mismanagement.
Presenting what it calls “True State of the Nation,” the NPP argued that Mahama’s administration was misleading Ghanaians on the true state of the economy. Former Finance Minister Dr. Mohammed Amin Adam defended the previous government’s policies, stating that their economic strategies, including the banking sector cleanup, were designed to strengthen Ghana’s financial architecture.
A major flashpoint in the economic debate is the 2017-2019 banking sector cleanup, which led to the revocation of licenses of several banks and financial institutions. The Mahama administration has pledged to review and potentially reinstate some of these banks, arguing that the clean-up was mismanaged and resulted in mass job losses and economic disruptions.
Dr. Amin Adam, however, maintains that the cleanup was necessary to prevent financial collapse. “The banking sector cleanup was well-intended. Despite the effects of the Domestic Debt Exchange Programme (DDEP), our financial system is now stronger and more resilient,” he stated.
While the National Economic Dialogue promotes a vision of economic restructuring, the NPP insists that the Mahama administration’s borrowing and policy direction pose risks to Ghana’s debt sustainability and currency stability.
According to the NPP’s economic team, major economic indicators signal a rebound, with a notable decline in inflation, a stabilizing cedi, and improving investor confidence. The party’s economic assessment highlights inflation Drop, thus inflation, which peaked at over 50% in 2023, has now fallen to 23.5% as of February 2025 due to improved monetary policies and declining food and fuel costs.
Secondly the Ghanaian cedi, which depreciated significantly in 2024, has stabilized against the US dollar, easing concerns over exchange rate volatility.
According to the NPP, treasury bill rates have dropped from 28.34% to 20.79%, reflecting lower borrowing costs and increased investor confidence.
The government has reportedly rolled over 75% of maturing debts without default, alleviating fears of another economic downturn.
The NPP credits its economic turnaround to strategic policy interventions, including:
Fiscal Discipline: The government has tightened public spending and reduced excessive borrowing, aiming to keep the fiscal deficit within sustainable limits.
Industrialization and Local Production: Increased investments in agriculture, manufacturing, and local industries have boosted productivity and employment.
Energy Sector Stabilization: Measures to address power sector inefficiencies and payment structures have improved electricity supply and reduced state liabilities.
Private Sector Support: Tax reliefs and incentives for businesses have spurred growth and investment.
Despite the NPP’s optimism, economic analysts and opposition parties, including the ruling National Democratic Congress (NDC), have questioned the validity of the recovery claims. Critics argue that while inflation has declined, living costs remain high, business credit is still expensive, and the overall economic recovery has yet to be fully felt by ordinary Ghanaians.
The Bank of Ghana (BoG), under its new governor Dr. Johnson Asiama, has already suspended the Gold-for-Oil program, signaling a shift in foreign exchange management. The NPP argues that Mahama’s policy shifts could increase forex pressure and weaken investor confidence, despite government assurances that economic stabilization measures will bring long-term benefits.
The competing narratives present a crucial decision point for investors, businesses, and financial analysts. Will the National Economic Dialogue yield actionable reforms, or will Ghana’s economic debate remain deeply polarized along political lines?
As both sides present their economic blueprints, Ghanaians now face the challenge of discerning between policy reality and political rhetoric, a decision that will shape the country’s financial future.
