Dr. Bawumia recently questioned what policy actions by the new NDC government could possibly explain the recent appreciation of the Ghana cedi, given that “they only passed their budget in March.”
Thus, he dismissed the administration’s early gains as policy-free fortune.
But let us be clear: governance is not merely about the passage of budgets or the issuing of contracts. It is about restoring confidence, signaling credible direction, and resetting expectations after eight years of economic mismanagement.
The Power of Confidence and Credibility
Markets don’t just react to budgets; they react to credibility. Since January, the new government has begun to rebuild market confidence through:
Fiscal prudence and signaling discipline
Removal of punitive taxes
A clear break from Bawumia-nomics
Investors—both local and foreign—are not stupid. They understand that this is a new chapter. Just the announcement of a competent team with technocratic experience was enough to recalibrate expectations.
Let’s Talk Lived Experience, Not Just Textbook Theory
Dr. Bawumia’s analysis ignores one of the most important economic metrics: how citizens experience the economy.
I used to pay ₵1,200 to fill my tank; I now pay ₵1,000.
A $1,000 plane ticket used to cost me ₵16,000. Today, I pay ₵12,700.
I used to be charged e-levy on mobile money transactions. That draconian tax is gone.
You cannot dismiss that as coincidence.
Bawumia’s Own Words Are Contradicting Him
To quote the learned economist himself:
“You can do all the propaganda in the world, but if the fundamentals are weak, the exchange rate will expose you.”
Well, the fundamentals today are improving—and the cedi is exposing the eight years of fiscal recklessness, ballooned debt, and over-leveraged consumption that characterized the NPP era.
Why So Defensive?
If our former Vice President is so confident in his legacy, he wouldn’t be rushing to downplay early wins by his successors. The irony is, his own record of economic collapse is the very reason these early wins are so visible. After all, when you inherit a house on fire, simply putting out the flames is a miracle.
Policy Isn’t Always Loud, But It’s Effective
Ending the e-levy is a policy.
Removing import taxes on key inputs is a policy.
Strengthening the Bank of Ghana’s independence and rebuilding fiscal discipline is a policy.
Choosing not to overspend in the first 100 days (unlike predecessors) is a policy.
My senior brother’s remarks are less an economic critique and more a political lament. But as he once reminded us:
“The exchange rate has no party colours.”
And right now, that exchange rate is clapping back—quietly, confidently, and undeniably.
Regardless of our political stripes, when Ghana succeeds, we all succeed!
—
Written by Dr. Sangu Delle
Global Leader in Healthcare, Finance & Academia | CEO, Investor & Philanthropist
