Former Finance Minister Dr. Mohammed Amin Adam Challenges Claims on Ghana's Economic Recovery

Strategic Insights -

The latest exchange in Ghana's economic debate has highlighted the divergent views on the current government's role in the country's economic recovery. Former Finance Minister and Ranking Member of Parliament's Finance Committee, Dr. Mohammed Amin Adam, has vigorously disputed claims by his colleague from the National Democratic Congress (NDC), Isaac Adongo, that the recent signs of macroeconomic stability are solely due to policies introduced by the new Mahama-led administration. Dr. Amin Adam attributes the country's ongoing recovery to years of structured economic reforms undertaken between 2022 and 2024, including fiscal consolidation, revenue mobilisation, and international negotiations to restore macroeconomic credibility.

Key Takeaways:

  • The former Finance Minister disputes claims that the current government's policies are solely responsible for Ghana's economic recovery, attributing it to reforms undertaken between 2022 and 2024.
  • Dr. Amin Adam highlights the International Monetary Fund's (IMF) recognition of Ghana's economic improvements in its April 2025 and December 2024 reviews, including stronger-than-expected growth, external sector resilience, and accumulation of reserves.
  • He cites the October 2024 Eurobond exchange, domestic debt restructuring, and bilateral debt negotiations that resulted in nearly $12.5 billion in debt relief and rescheduling, which were concluded before the new government took office.
  • The former Finance Minister points out that Ghana's debt-to-GDP ratio fell from 80.4% in 2020 to 53.7% in January 2025, with total public debt increasing by over GHS42 billion in just three months under the current government.
  • Dr. Amin Adam attributes the current foreign reserve level of nearly $9 billion to the former government, enabling the Bank of Ghana to intervene strongly in the forex market, and notes that inflation and high interest rates still signal fragility in the economy.
  • The former Finance Minister urged the government to move beyond claiming credit and focus on clearing arrears, restoring access to external finance, and launching its own economic plan to ensure sustainable progress.

Statistics:

  • Ghana's debt-to-GDP ratio fell from 80.4% in 2020 to 61.8% by December 2024, and further to 53.7% in January 2025.
  • The debt-to-GDP ratio rose to 55% under the current government after a three-month period.
  • The previous government concluded debt restructuring efforts, securing nearly $12.5 billion in debt relief and rescheduling.
  • The current foreign reserve level is approximately $9 billion, accumulated by the former government.
  • Inflation and high interest rates remain a concern in the Ghanaian economy.

Sources:

  • Dr. Mohammed Amin Adam's rejoinder to Isaac Adongo, issued on Sunday.
  • International Monetary Fund's (IMF) April 2025 review.
  • International Monetary Fund's (IMF) December 2024 report.
  • October 2024 Eurobond exchange.
  • Domestic debt restructuring.
  • Bilateral debt negotiations.