Mahama’s sinking fund, IMF commitment reasons behind economic stability not solely gold-for-oil - Veep's advisor
The assertion that Ghana's present stability in the economy is solely the result of the gold-for-oil initiative under the previous administration is not accurate, Professor Sharif Mahmud Khalid, an economic advisor to the Vice-President Naana Jane Opoku-Agyeman has said.
He said the Mahama administration had taken practical steps, including the servicing of the IMF loan and the activation of a sinking fund, to manage Ghana’s economic difficulties.
In a television interview on Channel One TV on Tuesday [May 20, 2025], Prof Khalid challenged former Vice President Dr Mahamudu Bawumia’s suggestion that the current administration has failed to stabilise Ghana’s economy.
Prof Khalid also challenged the view that the gold-for-oil programme was unique to Ghana or fully effective.
"It was not unique to Ghana. Most central banks in emerging markets adopted similar measures post-COVID to shore up reserves and stabilise currencies,” he said.
He added that during the period of implementation, the cedi still faced problems such as high inflation and volatility."
According to him, the programme also encountered what he described as transparency issues and operational weaknesses.
He said these problems were being addressed under the current administration through restructuring and better fiscal oversight.
Prof Khalid explained that recent improvements in the economy could be attributed to actions taken by the Mahama administration.
These include servicing Ghana’s IMF facility, continuing the domestic debt exchange programme inherited from the previous government, and reviving the sinking fund to meet debt obligations.
He described these as major steps that required coordination between the executive, the Bank of Ghana and the Ministry of Finance.
“The alignment has brought some level of discipline, which is helping with the cedi’s recent stability,” he said. He added that the budget presented by the government offered a path to reduce inflationary pressure and provide relief to Ghanaians dealing with high living costs.
Prof Khalid acknowledged the ongoing hardship, particularly for traders at places like Accra’s Makola Market, but expressed the view that the government’s actions are beginning to create the conditions for recovery.
He cited President Mahama’s announcement of a planned $10 billion economic stimulus as part of efforts to support growth.
Responding to Dr Bawumia’s criticism, Prof Khalid said, “If we are talking about government being a continuum, why is he saying we’ve done nothing?”
He noted that the administration inherited a public debt of GH¢721 billion and projected debt servicing costs of GH¢280 billion over the next four years.
According to him, measures are being taken to manage these pressures without making promises that cannot be met.
