As Ghana’s cedi sees a remarkable turnaround in its strength against the US dollar, financial analyst and banking consultant, Dr. Richmond Atuahene, is cautioning the government not to rest on its laurels but implement bold economic reforms that will sustain the gains.
Admitting that the recent momentum of the cedi is due to a combination of external and domestic factors, he says the government’s most important duty is not to celebrate the feat but to sustain the development with structural reforms.
In a comprehensive paper on the cedi’s stability, the financial analysts outlined a number of recommendations aimed at securing the cedi’s long-term resilience against major trading currencies.
Renegotiating Ghana’s Natural Resource Agreements to Increase Forex Inflows
Dr. Atuahene is urging the government to renegotiate mining and resource leases, taking inspiration from Botswana’s landmark deal with De Beers, where the country’s diamond revenue share will grow from 25% to 50% by 2030.
He describes Ghana’s current arrangement, where the country earns just a little as 13–15% of gold export proceeds, as economically unsustainable.
To him, Ghana’s mineral wealth is massive, yet the country reaps a fraction of its value. He cited the Auditor-General’s reports showing only US$6.4 billion in gold revenue out of US$43 billion in production between 2014 and 2022.
He believes renegotiating leases and prioritizing local refining and value addition will not only boost forex inflows but also create jobs and industrial linkages.
Agricultural Transformation: From Monoculture to Polyculture
Dr. Atuahene criticizes Ghana’s continued overreliance on cocoa and imports of basic food items like rice, tomatoes, and onions, despite the country’s vast agricultural potential. He advocates a shift to a polyculture model, similar to Côte d’Ivoire, and calls for massive investment in agriculture through private sector collaboration, credit access, and technological innovation.
“It’s shameful that Ghana imports onions and tomatoes when agriculture contributes over 50% of GDP,” he remarked.
Such transformation, he argues, will reduce import dependency, stabilize food inflation, and boost export earnings.
Export Diversification: Beyond Cocoa and Raw Minerals
Dr. Atuahene wants Ghana to aggressively diversify its export portfolio, moving beyond cocoa and unprocessed minerals to include finished products and services. He proposes a three-stage diversification model.
The financial analyst wants Ghana to shift from primary commodities to multiple commodities, from commodities to manufactured goods, and from goods to services such as banking, construction, and communication.
These shifts, he believes, would significantly reduce Ghana’s exposure to commodity price shocks and create more reliable streams of foreign exchange.
Fiscal Diversification and Discipline
To stabilize the cedi, Dr. Atuahene insists government must broaden its tax base through digitized property taxes, taxes on high-net-worth individuals, and environmental levies on small-scale miners. He recommends that Ghana learns from East African countries like Rwanda and Uganda that have achieved a tax-to-GDP ratio above 25% through such reforms.
He also emphasizes continued fiscal consolidation, tight monetary policy, and avoiding excessive deficits as cornerstones of sustained currency stability.
Import Substitution and National Buy-Ghana Campaigns
Calling for a strategic import substitution policy, he suggests the use of tariffs, quotas, and embargoes to encourage local production of basic goods. He proposes nationalistic campaigns such as “Buy Made-in-Ghana,” “Ghana in Me,” and “Friday Wear Promotions” to rally public support and reduce forex outflows.
Unlocking the Power of Remittances
Dr. Atuahene further underscored the importance of regulating remittances in anchoring the strength of the cedi. His analysis demonstrated that inward remittances outperform both cocoa and gold in forex inflows.
Between 2014 and 2023, Ghana received US$28.9 billion in remittances, which was higher than cocoa (US$18.7 billion) and gold (US$7.6 billion) combined. Yet, he warns of major discrepancies in reported figures between the Bank of Ghana, the Auditor-General, and the World Bank, estimating a gap of over US$8.5 billion.
“If Bank of Ghana and the 23 authorized dealer banks could trace and capture even 80% of remittances, it would significantly stabilize the cedi and improve our balance of payments,” he explained.
The Bottomline
Although the cedi’s recent gain is providing a breathing space, Dr. Atuahene believes now is the time to act boldly and structurally.
He is therefore challenging the government to move beyond short-term fixes and embrace deep economic transformation rooted in resource justice, agricultural revolution, fiscal prudence, and export diversification. For him, without a change in the fundamentals of the economy, the stability we are seeing today will be fleeting.
