The Institute of Economic Affairs (IEA) has urged the government to complement the recent appreciation of the Ghana cedi with robust efforts to boost domestic production and export-led growth. The think tank warns that the cedi’s gains could be short-lived without necessary structural reforms.
Speaking at an IEA public forum titled “Trump Tariffs: Implications for Africa and Ghana,” Senior Fellow Dr. Vladimir Antwi-Danso cautioned that while the current stability of the cedi is positive, it does not offer a long-term solution to Ghana’s economic vulnerabilities.
“We must try and be an export economy, and that is the only way you stabilize your currency. That is the only way you make the other currency lower or stronger,” Dr. Antwi-Danso stated.
He further warned that without improvements in real sector performance—especially increased domestic production and exports—the appreciation of the cedi may soon reverse. “What we are doing is that we are not stabilizing permanently—we will relapse. By December, I believe we will relapse. And I’m saying this from a technical point of view, not as a political comment. What I’m trying to say is that it’s not yet ‘hooray’ for a cedi kind of appreciation,” he added.
The forum convened economists, policymakers, and members of the diplomatic and business communities to discuss the impact of global trade dynamics on Ghana’s economic future. The discussions emphasized the urgent need for sustainable economic strategies that reduce reliance on imports and build resilience through value-added exports and industrialization.
As the cedi enjoys temporary gains, the IEA’s call aligns with wider concerns among economists who stress that lasting stability requires deep structural reforms rather than short-term monetary fixes.
Source: Winston Tackie
