{"id":31811,"date":"2024-12-19T06:32:33","date_gmt":"2024-12-19T06:32:33","guid":{"rendered":"https:\/\/sotnews.agency\/?p=31811"},"modified":"2024-12-19T06:32:33","modified_gmt":"2024-12-19T06:32:33","slug":"the-finance-minister-lied-through-his-teeth-when-he-said-npp-leaves-behind-a-resilient-economy-for-mahama","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=31811","title":{"rendered":"The Finance Minister lied through his teeth when he said NPP leaves behind a resilient economy for Mahama"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>5 Minute, 51 Second <\/div>\n\n <\/div>

If you listened to Finance Minister Dr. Mohammed Amin Adam\u2019s recent claims that the NPP is handing over a \u201cresilient economy\u201d to the incoming Mahama administration<\/a>, you\u2019d think Ghana has suddenly transformed into an economic paradise. <\/p>\n

Unfortunately, the Finance Minister\u2019s comments are not only disingenuous but a painful insult to the intelligence of the Ghanaian people, who continue to bear the brunt of years of economic mismanagement.<\/p>\n

Let\u2019s break down the fiction and the reality.<\/p>\n

1. Inflation is not under control<\/strong><\/h3>\n

The Minister boasts about reducing inflation from a peak of 54% in 2022 to 23% in 2024. <\/p>\n

What he fails to mention is the devastating impact that runaway inflation has already had on ordinary Ghanaians\u2019 purchasing power. Prices remain astronomically high, and even with a downward trend, Ghana still faces one of the highest inflation rates in Africa. Context matters.<\/p>\n

\"Dr.
Dr. Mohammed Amin Adams, tells a crooked lie about Ghana\u2019s economy with a straight face<\/figcaption><\/figure>\n

IMF reports confirm that inflation has declined slower than projected because of a weaker cedi and systemic structural failures in monetary management (IMF Report, 2024<\/a>). In fact, IMF data shows that inflation will remain stubbornly high until at least 2025, exposing the fragility of the so-called \u201cresilient economy.\u201d<\/p>\n

The Ministry of Finance\u2019s recent report titled \u201c<\/em>Ghana\u2019s Economic Surge: Q3 2024 Growth Outpaces Expectations<\/em><\/a>\u201c<\/em> tries to sell an overly rosy image of the economy. It claims a \u201c5.1% GDP growth in Q3\u201d and praises strong performance in construction, ICT, and mining. But the reality is far less glamorous. This growth is skewed heavily toward extractive sectors, with limited trickle-down benefits to everyday Ghanaians. Where are the jobs? Where is the relief for SMEs that continue to face exorbitant borrowing costs and limited access to capital?<\/p>\n

Moreover, the report glosses over the structural challenges that persist\u2014including energy sector inefficiencies and the weak agriculture performance caused by the recent dry spell, as highlighted in IMF assessments<\/a>.<\/p>\n

2. The Cedi is still in a free fall<\/strong><\/h3>\n

Despite claims of improved foreign reserves (now $8 billion), the cedi remains vulnerable to external shocks. Let\u2019s not forget that in 2023, the currency lost over 50% of its value at one point. Even in 2024, the IMF\u2019s third review report of Ghana\u2019s Extended Credit Facility (ECF) highlights that exchange rate volatility persists. Ghanaians can attest to this whenever they visit forex bureaus or see import-dependent goods skyrocket in price.<\/p>\n

While the Bank of Ghana has spent valuable reserves propping up the cedi, this is no permanent solution. Reserves are being used as a plaster<\/em>, not a cure.<\/p>\n

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A plaster covers the problem, but it doesn\u2019t cure it<\/em><\/p>\n<\/div>\n<\/div>\n

The Ministry\u2019s report claims \u201ca stable cedi in Q3 2024 (MoF Q3 Report<\/a>),\u201d but this narrative ignores the artificial measures propping it up. Without robust structural reforms and sustainable revenue growth, the cedi\u2019s stability remains temporary at best.<\/p>\n

3. Debt and IMF dependency paint a grim picture<\/strong><\/h3>\n

The NPP administration\u2019s appetite for borrowing has brought Ghana to its knees. Public debt currently stands at 78% of GDP<\/strong>, with domestic debt restructuring and Eurobond renegotiations barely providing breathing space (IMF Report, 2024<\/a>). The IMF has had to intervene to provide $3 billion to stabilize the economy, a move necessitated by fiscal recklessness.<\/p>\n

In an ironic twist, the Finance Minister claims victory because of Ghana\u2019s so-called progress under the IMF program. But let\u2019s be clear: the IMF bailout was the only<\/em> option after the NPP government plunged the economy into crisis. The same administration that borrowed excessively and spent wastefully now wants credit for securing a rescue package?<\/p>\n

4. The energy sector is still a fiscal black hole<\/strong><\/h3>\n

Dr. Adam conveniently sidestepped one of Ghana\u2019s biggest economic headaches\u2014the energy sector. <\/p>\n

The IMF reports that energy sector shortfalls are projected to hit 2.2% of GDP in 2024<\/strong>, largely due to poor governance, inefficiency, and costly liquid fuel procurement. <\/p>\n

The Electricity Company of Ghana (ECG) continues to accumulate arrears, undermining efforts to resolve the sector\u2019s legacy debts. This is not resilience; it\u2019s unsustainable chaos. And that doesn\u2019t even take into consideration the debt<\/em> owed Hubtel<\/a> \u2013 which they would surely come to claim despite all the issues surrounding the contract. <\/p>\n

5. Unemployment and poverty are worse than ever<\/strong><\/h3>\n

Ghana\u2019s economic woes have pushed many citizens into poverty. The IMF estimates that 29.5% of Ghanaians now live below the extreme poverty line<\/strong>, a stark increase from previous years. The government\u2019s flagship programs have failed to create enough jobs to match population growth, and the private sector\u2019s struggles further deepen the crisis.<\/p>\n

The Ministry of Finance\u2019s Q3 report ignores these glaring poverty numbers, instead touting a rise in employment in specific sectors like mining and construction. But these gains are highly localized and exclude the informal economy, where most Ghanaians work. People on the ground know the truth: poverty has worsened, not improved.<\/p>\n

On social media, people like Alfredo (@CallmeAlfredo<\/a>) and Jerome (@readjerome<\/a>) highlight the stark realities of hardship under the NPP. <\/p>\n

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You\u2019re handing over an economy that cannot pay its debts and has restructured debt that will be due during the next government\u2019s term. You\u2019re leaving behind an economy that uses treasury bills as the primary source of financing deficits. You\u2019re leaving behind significant debt in\u2026 https:\/\/t.co\/opWL5305NJ<\/a><\/p>\n

\u2014 Alfred (@CallmeAlfredo) December 17, 2024<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Alfredo rightly points out that economic recovery is cosmetic when the average Ghanaian cannot afford basic goods. Jerome calls out the administration for spinning numbers to paint a false picture of stability, despite the clear evidence of debt and inflation eroding livelihoods.<\/p>\n

I doff my hat to these two; they are doing a thankless job\u2014a job that should be done by us, the media\u2014but that is a tale for another day.<\/p>\n

6. The facts speak louder than propaganda<\/strong><\/h3>\n

The Finance Minister\u2019s narrative of a \u201cresilient economy\u201d is nothing but a rebranding exercise in damage control. The IMF, World Bank, and real-world indicators all tell a different story: Ghana\u2019s economy remains fragile, burdened by debt, inflation, unemployment, and structural inefficiencies.<\/p>\n

The Ministry of Finance\u2019s Q3 report is a prime example of cherry-picking statistics to paint an unrealistic picture \u2013 and Dr Amin Adam\u2019s comments in the media are surely supposed to serve as the cementing to hold that in place. But Ghanaians deserve transparency, not spin.<\/p>\n

The NPP administration leaves behind an economy on life support\u2014one that will require bold and responsible leadership to recover. It is dishonest to claim otherwise.<\/p>\n

And it is our solemn duty to challenge these false narratives and hold leaders accountable \u2013 after all, we are asked to be citizens and not spectators. Ghanaians deserve better than economic spin. They deserve the truth.<\/strong><\/p>\n

The post The Finance Minister lied through his teeth when he said NPP leaves behind a resilient economy for Mahama<\/a> first appeared on 3News<\/a>.<\/p>

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If you listened to Finance Minister Dr. Mohammed Amin Adam\u2019s recent claims that the NPP is handing over a \u201cresilient economy\u201d to the incoming Mahama administration, you\u2019d think Ghana has… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-31811","post","type-post","status-publish","format-standard","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/31811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31811"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/31811\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}