Mahama’s economic stability built on $8.9bn reserves left by Akufo-Addo - NPP

Former Finance Minister Dr Mohammed Amin Adam has said the $8.9 billion gross international reserves left by the Akufo-Addo administration are sustaining the current government’s efforts to stabilise the cedi and control inflation.

Speaking at a press conference on Monday, March 3, 2025, Dr Amin Adam argued that President John Mahama’s administration is benefiting from the fiscal discipline and strategic planning of its predecessor.

“The exchange rate stability we are witnessing today is not due to any magic from the current government,” he said.

“It is the result of the reserves left by the Akufo-Addo government, which are now being used to support the cedi.”

Reserves and the economy

Dr Amin Adam explained that the reserves have played a major role in limiting the depreciation of the cedi, which had fallen by 50 per cent in 2022.

He noted that the current administration’s ability to maintain a relatively stable exchange rate is largely due to these funds, which provide a cushion against external shocks.

“When we left office in December 2024, we made sure the next government had the necessary tools to manage the economy,” he said.

“The current disparity between inflation and the rate of depreciation is evidence of heavy central bank intervention, made possible by the reserves we left behind.”

Inflation and economic pressures

Dr Amin Adam also addressed inflation, a major concern for Ghanaians, noting that despite global economic challenges, the Akufo-Addo administration was able to reduce inflation from 15.4% in 2016 to 54% at its peak in 2022.

“Even laypeople can understand the inverse relationship between inflation and the strength of a currency,” he said.

“The sharp depreciation of the cedi in 2022 naturally led to higher inflation. However, by reducing the rate of depreciation to 19% in 2024, we were able to limit its impact on inflation. These efforts should not be ignored.”

Debt relief and fiscal policies

The former Finance Minister also highlighted the $2.8 billion debt service relief secured through debt rescheduling with official bilateral creditors.

He stated that the agreement, which allows Ghana to defer payments until after 2026, was negotiated by the Akufo-Addo government and has given the current administration room to manage public finances.

“This agreement was not signed by the current government,” he said. “It was the result of careful negotiations by the previous administration. The savings from this arrangement are being used to support economic recovery, yet the president has failed to acknowledge this.”

Criticism of Mahama’s economic policies

Dr Amin Adam accused President Mahama of failing to be transparent about the true state of the economy.

He argued that the government is relying on fiscal buffers left by the NPP while failing to introduce policies for long-term stability.

“The president spoke about the sinking fund as if it were the only buffer,” he said.

“But we left multiple buffers, including the Eurobond proceeds account, the IMF proceeds account, and the treasury main account, which together amount to over GHS 5 billion. These resources are being used to manage the economy, yet the president has chosen to remain silent on this.”

Call for accountability

He urged the government to be upfront about its economic management and to build on the foundations laid by the previous administration.

He also called on Ghanaians to hold the government accountable for its promises on job creation, power supply, and fiscal discipline.

“We cannot afford to play politics with the economy,” he said. “We have made progress, but there is still work to be done. The current administration must rise to the occasion and deliver on its promises.”