Bank of Ghana Governor, Dr. Johnson Pandit Asiama, has urged global investors to assess Ghana based on its current reforms. He made this statement at the Ghana-UK Investment Summit in London. Dr. Asiama asked global investors to ignore the 2022 economic crisis.
He believes Ghana's current economic state is different due to many institutional reforms. The Governor acknowledged the country's painful Domestic Debt Exchange Programme (DDEX). That programme happened in 2022. It affected investor confidence significantly.
Dr. Asiama stressed that using a “crisis-era filter” does not show the true picture of Ghana today. Both monetary and fiscal bodies have worked hard to rebuild the economy. They have done this over the past few years. Amendments to the Bank of Ghana Act prove this change.
The revised law puts strict legal limits on the central bank's ability to fund government deficits. Funding deficits was a main cause of the 2022 crisis. These new fiscal rules and legal protections prevent past policy errors. “We are building back better. What happened in the past belongs to the past,” Dr. Asiama stated. He also highlighted that economic stability has returned. Ghana is now ready for long-term investments.
His comments align with the government's push for fiscal discipline since the 2022 crisis. Ghana's public debt-to-GDP ratio reached 88.6% in 2022. This prompted the government to seek an International Monetary Fund (IMF) bailout. The current reforms aim to prevent a return to such high debt levels. The mid-year budget review of 2023 showed efforts to curb government spending. These efforts included measures to boost revenue collection. Data from the Bank of Ghana shows a gradual recovery of the cedi. This indicates improved investor sentiment in recent months.
Dr. Asiama provided a clear view of external challenges. He noted that recent tensions in the Middle East have slowed Ghana's falling interest rates. Global energy shocks from these tensions have stopped the steady drop in borrowing costs. “But for the Middle East crisis, interest rates would probably have been below 10 percent by now,” Dr. Asiama revealed. He remains hopeful that rates will fall quickly once these external pressures ease. This shows the economy's sensitivity to global events.
He also shared an ambitious plan for Ghana’s financial sector. The country is using its stable economy to drive a complete economic change. It is actively seeking both local and foreign investments. A key part of this plan involves Ghanaians living in the UK. Dr. Asiama challenged them to invest more than just sending money home. He believes diaspora capital can attract more international funds. This indicates a focus on leveraging remittances for productive investments.
The Governor sees Ghana as an emerging economic power. He mentioned the country's skilled workforce and growing capital. New institutional rules also strengthen this vision. Dr. Asiama aims to establish an international financial services centre in Accra. This centre would emerge within the next few years. It would position Accra as a leading financial hub in Africa. This move would attract significant foreign direct investment. It would also create many jobs in the financial sector.