Tensions flared in Parliament on Monday as Members of Parliament from both the Majority and Minority sides fiercely debated over who deserves credit f
Tensions flared in Parliament on Monday as Members of Parliament from both the Majority and Minority sides fiercely debated over who deserves credit for the country’s recent economic rebound
The debate comes amidst positive indicators such as falling inflation and a stronger Ghanaian cedi, but opposing parties disagree on the sustainability and origins of these gains.
The debate was ignited by Eric Afful, the National Democratic Congress (NDC) MP and Chairman of the Committee on Economy and Development, who attributed the improvements to policy measures initiated under the leadership of President John Mahama and continued under his new administration.
He highlighted key statistics from the Bank of Ghana to support his claim.
“Headline inflation has fallen consecutively this year—dropping to 21.2% in April and 18.3% in May 2025. This has directly influenced the cost of goods and services,” Afful stated.
“Public debt has also declined as a percentage of GDP, with figures falling from 61.8% in December 2024 to 55% by March 2025.”
He further argued that the Ghanaian cedi’s renewed strength was the result of fiscal discipline, increased foreign exchange reserves, tighter monetary policy, and improved investor confidence.
However, the New Patriotic Party (NPP) fired back, accusing the Mahama administration of claiming undue credit.
Kojo Oppong Nkrumah, NPP MP for Ofoase Ayirebi and Ranking Member of the same committee, challenged the authenticity of the economic recovery, alleging that it was artificially engineered by the government through short-term fixes.
“It’s true the cedi has appreciated, but at what cost?” he queried.
“The government injected about $1.4 billion from our international reserves to shore up the cedi. That isn’t economic growth—it’s market manipulation.”
Kojo Oppong Nkrumah questioned the sustainability of this approach and suggested the reserves used were inherited from the previous Akufo-Addo government.
“The administration has not raised $1.4 billion on its own. It is merely drawing down on reserves we left behind,” he asserted.
On the matter of job creation and social programmes, he also cast doubt.
“They claim to have signed a contract to send 2,000 Ghanaians abroad for work. But where is the funding? There are no actual beneficiaries on the ground,” he said.
Adding nuance to the conversation, Energy and Green Transition Minister John Jinapor called for a more informed interpretation of the numbers.
He explained that while inflation is declining, this doesn’t mean prices are dropping—only that the rate of increase is slowing.
“There’s a lag in the economic transmission mechanism,” Jinapor said.
“Positive economic indicators like reduced inflation and a stable cedi must now be translated into job creation. That is the next task.”
But NPP MP for Walewale, Dr. Kabiru Mohammed, also cautioned against celebrating prematurely.
He accused the Bank of Ghana of artificially boosting the cedi and warned this was inconsistent with free market principles.
“This administration’s injection of dollars into the market gives a false sense of strength to the cedi,” he said. “Even the IMF has advised the Bank of Ghana to halt such direct interventions.”
Dr. Kabiru further argued that the improved debt-to-GDP ratio did not reflect sound economic management but rather stemmed from painful debt restructuring agreements initiated by the Akufo-Addo administration, including Ghana’s IMF bailout program.
“The government hasn’t cleared its debts. What it has done is suspend payments and restructure obligations,” he emphasized.
“The numbers look better not because of growth, but because of these tough decisions.”
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