A New Patriotic Party (NPP) legal team member has raised concerns about whether Ghana’s recent economic improvements under the National Democratic Congress (NDC) government reflect genuine policy success or artificially sustained gains.
Ishaq Ibrahim, a lecturer at the University of Professional Studies, Accra (UPSA) Law School, acknowledged the cedi has appreciated but said the measures behind the gains remain unclear during his appearance on The Forum on Asaase Radio on Saturday.
The legal scholar noted that comparisons with past governments, such as the 2016 NDC administration that sought International Monetary Fund (IMF) support, show new administrations often inherit economic gains, raising questions about the current government’s direct contribution.
“The cedi has improved greatly and there are no external exigencies affecting Ghana,” Ibrahim stated. He added that some economists argue these gains are being artificially managed using reserves, which may not be sustainable.
Ghana’s cedi posted exceptional performance in 2025, breaking a 30 year losing streak with a reported 40.7 percent appreciation against the US dollar, marking the currency’s first annual gain since at least 1994 when comprehensive exchange rate tracking began. According to Bloomberg data, the cedi was Africa’s best performing currency with almost 40 percent year on year appreciation.
Ibrahim stopped short of making definitive claims about the government’s economic management. “I am not sure if these analyses are correct, but if they are, then I can say the economy is being artificially managed,” he explained. “I will praise the government if it can sustain these artificial gains.”
Government Communications Minister Felix Kwakye Ofosu has declared that Ghana’s economic situation has improved significantly since the Mahama administration took office in January 2025, citing multiple indicators pointing in the right direction.
Inflation declined for 11 consecutive months from 23.8 percent in January to 6.3 percent in November 2025, representing the lowest rate since 2021. The government met its 2.8 percent budget deficit target for 2025 under the three billion dollar IMF supported programme, with plans to reduce it further in 2026.
The Gold for Reserve programme has transformed Ghana’s economic landscape by aggressively diversifying the nation’s foreign exchange buffers. Bank of Ghana gold holdings reached 38.04 tonnes by October 2025, a massive leap from 8.78 tonnes held in May 2023.
Analysts warn that the cedi’s strength is currently balanced on the price of gold, with concerns that if global tensions ease or central banks begin offloading gold reserves, a retraction in prices could leave Ghana vulnerable.
Ibrahim emphasized that genuine economic progress requires more than short term improvements in key indicators. While the government has made some progress, careful attention is needed to ensure that economic stability translates into real prosperity and long term growth for Ghanaians, he said.
His comments reflect broader debates within Ghana’s political and economic circles about the authenticity and durability of current economic trends. The NPP legal team member’s analysis suggests that the true test of the government’s economic management will be whether current gains can be maintained without depleting national reserves or relying on unsustainable interventions.
The Ghana cedi maintained its firm position against the United States dollar on Friday, January 2, 2026, with the central interbank rate holding around 10.45 cedis to one dollar, according to the latest Daily Exchange Rates published by the Bank of Ghana.
Ghana’s total public debt dropped from 726.7 billion cedis, representing 61.8 percent of gross domestic product (GDP) in 2024, to 630.2 billion cedis, equivalent to 45 percent of GDP by October 2025, according to the 2026 Budget Statement presented to Parliament.
The coming months will provide clearer evidence about the durability of Ghana’s economic recovery and whether the policies driving improvements can be sustained over the long term.
