By Charles Kwesi Mensah
Ghana stands at a pivotal moment in its economic journey. As a nation rich in natural resources and vibrant in entrepreneurial energy, we must now take bold and unified steps to preserve the strength of our local currency, the Ghanaian cedi. Central to this mission is full compliance with the Foreign Exchange Act, 2006 (Act 723), and a progressive review of all special retention agreements granted to exporters, particularly those in the natural resources sector.
Exporters, investors, and financial institutions, especially the Bank of Ghana, play an indispensable role in this endeavor. The practice of allowing certain companies to retain large portions of export proceeds abroad undermines our national economic resilience. In the face of global economic volatility, ensuring that export earnings return home is not only a legal obligation but a patriotic one.
A Fair Playing Field for All Exporters
While the rationale for retention agreements may lie in covering offshore liabilities and operational costs, this must be carefully balanced against national priorities. The Foreign Exchange Act was instituted to ensure transparency, economic stability, and growth through the prompt repatriation of foreign currency earnings.
Exporters must be assured that full compliance is not a disadvantage. Instead, it should be a cornerstone of trust, reliability, and a renewed commitment to Ghana’s economic sovereignty.
All exporters- namely; mining companies, oil companies regardless of size or sector, should be encouraged, and required, to bring home 100% of their proceeds within regulated timelines.
Investors: Join the Call for Economic Sovereignty
Investors benefit most when Ghana’s economy is stable, its currency is strong, and its regulatory environment is reliable. Supporting reform and compliance with the Foreign Exchange Act ensures a fair and predictable economic landscape. Retention arrangements that disproportionately favor foreign entities distort the market and increase pressure on the local currency.
We invite investors to support efforts that prioritize the return of capital into Ghana’s banking system. Investment should mean partnership, not only in profit but in responsibility.
The Role of the Bank of Ghana
The Bank of Ghana must continue to lead with courage and clarity. By reviewing and realigning all existing retention agreements, the central bank can ensure that exporters uphold the letter and spirit of the law. The LOC (Letter of Commitment) platform must be enforced more stringently, with transparent tracking and penalties for non-compliance.
A reformed, transparent framework will not only improve forex reserves but also boost investor confidence, attract capital inflows, and enhance national development efforts.
The Currency Is Our Collective Responsibility
Ghana’s future prosperity hinges on our ability to steward our resources wisely. This is a call to all stakeholders, exporters, investors, and the Bank of Ghana, to rally around the cedi. Let us save the local currency by adhering to our legal frameworks, strengthening our economic integrity, and forging a more resilient financial future.
The time to act is now. The currency is ours. Let’s protect it together.
Charles Kwesi Mensah is the Managing Partner at Trust Consult Limited.
