The Civil Society Organisations (CSOs) Budget Forum has urged the government to introduce additional policy measures to stabilise the cedi and include a sunset clause in the Energy Sector Levy (Amendment) Bill, 2025.
This call comes ahead of the Mid-Year Budget presentation by the Minister of Finance, Dr Cassiel Ato Forson, on July 24, 2025. A sunset clause would set an automatic expiration date for the policy unless renewed.
Abdul Karim Mohammed of the Economic Governance Platform emphasised the need for a clearly defined sunset clause to ensure the levy was time-bound, promoting accountability and restoring public confidence.
The proposed levy aims to support the indebted energy sector by introducing a GH¢1 levy on every litre of fuel purchased.
A sunset clause is a legal provision that sets an automatic expiration date for a policy, law or contractual obligation unless it is renewed or extended through a formal process.
“We are calling for a clearly defined sunset clause that will ensure the levy is time-bound,” he said, adding, “This will help promote accountability and restore public confidence in the government’s management of the energy sector.”
The cedi, which has shown some relative strength this year, has recorded a year-to-date appreciation of 50 per cent against the US dollar, according to Fitch Solutions.
The local unit is currently trading at GH¢10.40 to the dollar on the interbank market, although retail market quotes remain significantly higher at over GH¢12.
Despite the cedi’s recent performance, Fitch Solutions projects the local currency will end the year at GH¢11.45 per dollar on the interbank market.
Beyond currency stability, the Forum also called on the government to introduce robust measures aimed at accelerating the downward trend in headline inflation, particularly food inflation, which continues to weigh heavily on low-income households.
Headline Inflation
Although headline inflation dropped significantly to 13.7 per cent year-on-year in June 2025 — the lowest since December 2021 — food inflation remains elevated. The Ghana Statistical Service (GSS) recorded food inflation at 16.3 per cent in June, down from 22.8 per cent in May.
The CSOs Budget Forum maintains that while recent macroeconomic trends offer some optimism, the government must consolidate the gains through prudent fiscal and monetary policy interventions in the upcoming budget review.
Meanwhile, Fitch Solutions, in response to the sharp fall in inflation, has revised its inflation forecasts downward. It now expects average inflation to reach 15.4 per cent in 2025 and 12.2 per cent in 2026, compared to earlier projections of 17.1 per cent and 13.9 per cent, respectively.