The Bank of Ghana says it’s shifting focus from short term economic stabilization toward driving productivity led growth, as mounting evidence confirms that the country has emerged from its worst macroeconomic crisis in decades.
Speaking at the 14th Ghana Economic Forum in Accra on behalf of Governor Johnson Pandit Asiama, the Governor’s special advisor John Kwakye said recent data confirms the stabilization phase has largely been achieved, with inflation, exchange rates, and reserves all showing marked improvement.
“Just three years ago, inflation had soared above 50 percent, confidence had eroded, and the cedi was sliding,” Dr. Asiama noted. “Today, that tide has turned through credible monetary policy, fiscal restraint, and coordinated reforms.”
The numbers tell a compelling story of recovery. Inflation fell sharply to 9.4 percent in September 2025, well within the central bank’s target band for the first time in four years, down from over 54 percent in late 2022. The cedi, which depreciated 19 percent last year, has appreciated by more than 37 percent year to date. Gross international reserves have risen to $12 billion, enough to cover about four and a half months of imports.
Economic growth has also strengthened substantially. GDP expanded by 6.2 percent in the second quarter, up from 5.7 percent a year earlier, driven largely by services and agriculture. Non oil GDP grew by 10 percent, reflecting a broader recovery in domestic activity that extends beyond the extractive sectors.
“The evidence of recovery is not abstract; it’s visible, measurable, and real,” Dr. Asiama said. He added that the trade surplus had widened to $6.2 billion in the first eight months of 2025, nearly triple the level of last year, supported by higher gold and cocoa prices.
Beyond Stability to Production
The Governor stressed that the next phase of policy must go beyond stability to strengthen the economy’s productive sectors. This represents a fundamental shift in the central bank’s strategic focus, moving from crisis management to structural transformation.
“Stability without production or productivity is hollow,” he said. “A currency derives its enduring value from what a nation produces and sells to the world.”
Dr. Asiama pointed to the new Gold Board Act, which centralizes gold trading and exports, as an example of how natural resources can be linked directly to the reserve management strategy. He said the Act will help transform gold from a simple export commodity into a strategic reserve asset, deepening domestic value creation.
The Governor explained that when gold passes through official channels under the new framework, it strengthens reserves while ensuring proper valuation and traceability. This contrasts sharply with previous arrangements where much of Ghana’s gold left the country through informal channels, contributing little to national reserves or the formal economy.
Digital Innovation and Financial Inclusion
On financial innovation, the Governor said initiatives such as the e-Cedi pilot and expansion of digital payments infrastructure are part of the Bank’s broader plan to modernize Ghana’s financial system. These efforts, he explained, will reduce transaction costs, promote transparency, and bring more Ghanaians into the formal economy.
The e-Cedi, Ghana’s proposed central bank digital currency, is currently undergoing pilot testing with selected financial institutions and merchants. The Bank of Ghana views digital currency as crucial for improving payment efficiency, particularly for small transactions and cross border remittances that currently face high costs.
Dr. Asiama also emphasized that regulatory frameworks for fintech companies will be strengthened to balance innovation with consumer protection and financial stability. Ghana’s fintech sector has grown rapidly in recent years, with mobile money transactions now accounting for a significant share of the country’s payment ecosystem.
The Fiscal Discipline Challenge
The Governor warned that maintaining fiscal discipline will be crucial ahead of the 2028 elections. This represents one of Ghana’s most persistent economic challenges, as previous election cycles have often seen increased government spending that undermined macroeconomic stability.
“The temptation to ease fiscal controls is real,” he cautioned. “Fiscal slippage, no matter how well intentioned, could undo hard won confidence and put renewed pressure on the cedi.”
His warning echoes concerns raised by international partners and private sector analysts who’ve watched Ghana’s reform momentum falter in past political cycles. The 2020 election year, for instance, saw fiscal discipline weaken significantly, contributing to the 2022 debt crisis that required IMF intervention and painful debt restructuring.
Dr. Asiama called for stronger collaboration between government, banks, and the private sector to sustain the recovery through productive investment and innovation. He stressed that currency strength isn’t just about central bank interventions or foreign exchange restrictions, but fundamentally about what the economy produces and how competitive those products are globally.
“The transformation we seek is inherently collaborative,” he said. “Currency strength is as much about what we build together as what we regulate.”
Targeted Credit for Strategic Sectors
Dr. Asiama concluded that the Bank of Ghana’s focus will now be to translate stabilization gains into structural transformation through targeted credit support to manufacturing, agri processing, and green projects.
This policy shift suggests the central bank will work with commercial banks to channel more credit toward productive sectors rather than consumption or trading activities. Ghana’s banking sector has historically concentrated lending on short term trade finance and personal loans, with limited appetite for medium to long term industrial financing.
The Governor indicated that regulatory incentives and risk sharing mechanisms may be deployed to encourage banks to increase lending to manufacturers and agricultural processors. Green projects, particularly in renewable energy and climate adaptation, will also receive special attention given their potential to reduce energy costs and build economic resilience.
“With stability, production, and innovation as our pillars,” he said, “Ghana’s currency can once again be a source of national pride.”
The speech comes as Ghana consolidates gains from its IMF supported recovery program and prepares for life beyond emergency stabilization measures. Whether the country can successfully transition from stabilizing the economy to transforming it will likely determine if recent improvements prove temporary or mark the beginning of sustained prosperity.
The central bank’s pivot to production led growth acknowledges a fundamental reality: no amount of monetary policy tightening or exchange rate management can substitute for an economy that produces valuable goods and services the world wants to buy. Ghana’s challenge now is to build that productive capacity while maintaining the hard won stability that makes such transformation possible.
