Economic Policy Advisor at the Office of the President, Seth Terkper, has warned that escalating geopolitical tensions in the Middle East could pose serious risks to Ghana’s fragile economic recovery if the country does not act proactively.
Mr. Terkper urged government and policymakers to take immediate steps to mitigate the potential impact of rising oil prices, currency pressure, and inflation triggered by unrest in global oil-producing regions.
“The most important thing is to prepare for a crisis like what we’re seeing in the Middle East. You don’t prepare during the crisis, you prepare before it hits,” he said.
Mr. Terkper, explained that instability in the Middle East has historically led to volatility in global oil prices, often resulting in higher import bills and exchange rate pressure for oil-importing countries like Ghana. With global markets already reacting to recent escalations in the region, he warned that Ghana must not be complacent.
“If global oil prices spike, we’ll see that reflected in fuel costs, transport fares, and the general price level. That puts strain on the cedi, increases inflation, and affects every household,” he noted.
To shield the country from such shocks, he advocated for the revival and strengthening of fiscal buffers, including the Sinking Fund and the Stabilisation Fund, mechanisms previously used to absorb economic shocks and manage debt sustainably.
“These funds are not luxuries but they’re economic shock absorbers,” he said, adding that their proper use during times of global uncertainty can help maintain macroeconomic stability and investor confidence.
Mr. Terkper’s remarks add to growing voices urging Ghana to adopt a forward-looking approach to economic planning, one that accounts for geopolitical risks and external vulnerabilities.
He also encouraged broader debate on how Ghana can reduce its dependence on imported fuels and strengthen local energy systems, including refining capacity and renewable alternatives.
With the global oil market under watch amid worsening tensions between Iran and Israel, his warning serves as a timely reminder that external events can quickly upend domestic stability. He stressed that while Ghana cannot control global politics, it can control its preparedness.
“The goal is not panic, but preparation, resilient economies don’t just survive shocks, they anticipate and absorb them,” he said.
