Dr. Bawumia and his Economic Management Team have Damaged Ghana’s Reputation with International Creditors and Institutions

The IMF October 2023 Regional Economic Outlook Report for Sub-Saharan Africa showed that Ghana was left with 1.4 months of import cover. The ration is an indication that the level of Ghana’s foreign exchange reserves is relatively low compared to the value of imports. Given the fact that we have already defaulted on our external debt, the relatively low foreign reserves indicate potential vulnerability in our ability to finance import bills over an extended period. To date, Dr. Bawumia and his economic management team have failed to take the necessary measures to increase our foreign exchange reserves. Efforts to lobby for debt forgiveness or restructure our debt to favorable terms from the Paris club have yielded nothing.

Meanwhile, Dr. Bawumia NPP administration is unable to attract foreign investment either. Inflation continues to remain in a double digit due to poor and ineffective monetary policies. It is becoming increasingly difficult to attract investors because they are scared to do business with a country that has defaulted on its debt payment obligations. In a desperate effort to fix the economy, Dr. Bawumia introduced the gold for oil policy to stabilize the humpty dumpty fall of the Ghana cedi. This policy could as well be described as a poor economic policy scholarship. The policy is not an effective strategy to stabilize the cedi for several reasons. For example, gold as a commodity is subject to price volatility and that alone defeats the objective of Dr. Bawumia’s policy. Sadly, you have other PhDs who supported this poor policy due to blind loyalty. What I don’t even understand is how this policy could be possible if “98.3% of Ghana’s Gold Remains in the Hands of Multinational Corporations” (Celina Della Croce, Common Dreams, 2019).

Now Dr. Bawumia has lost his mojo on the economy. The economic policy lectures have now been replaced by lectures which tend to suggest to the international community that Ghanaians are fraudsters. When all is said and done, I must say Dr. Bawumia, and his economic management team have damaged Ghana’s reputation and relationships with international creditors and institutions. Ghana’s trust and credibility have eroded and if care is not taken, it is going to be difficult for the next alternative government to negotiate favorable terms for future loans.

By Ebenezer Ato Ntarkurfah Jackson
Cornell University-Johnson School of Management

MBA Class of 2015