In a pointed rebuttal to President John Dramani Mahama’s recent State of the Nation Address, former Deputy Finance Minister Abena Osei-Asare asserted that Ghana was on a clear path to economic recovery prior to the current administration and accused President Mahama of attempting to “rewrite history.”
Economic Recovery Indicators
Osei-Asare highlighted several key economic indicators from 2024 to support her claims:
- GDP Growth: Real GDP growth averaged 6.3% in the first three quarters of 2024, with the industrial sector leading at 10.4%.
- Primary Balance: Ghana achieved a positive primary balance of 0.4% of GDP as of November 2024, a significant improvement from the negative 1.4% recorded in 2016.
- Revenue Collection: Total revenue collection surpassed targets by 3.3%, indicating robust financial management.
Countering Claims of Mismanagement
Addressing President Mahama’s allegations that the previous administration “criminally handled” the economy, Osei-Asare refuted these assertions as baseless. She acknowledged that while Ghana faced economic challenges, the measures implemented laid a strong foundation for recovery before the transition of power.
In her detailed response, the Atiwa East MP criticized him for presenting what she described as an overly bleak picture of the economy without acknowledging the critical interventions that stabilized it before he took office.
“The NPP has never shied away from acknowledging the economic challenges that Ghana faced, but we took decisive and responsible actions to put the economy back on the path of recovery, culminating in the IMF giving the economy a clean bill of health,” she stated.
According to Ms. Osei-Asare, the financial sector was in a much stronger position at the end of the NPP’s tenure than Mahama suggested in his address.
“Depositors’ funds were protected during the financial sector clean-up, preventing the total collapse of the banking industry. The banking sector’s total assets rose from GH¢81.2 billion in December 2016 to GH¢367.2 billion in October 2024. Private sector credit increased by 28.8% in 2024, compared to negative 7.5% in 2023, showing strong financial recovery,” she noted.
She further dismissed President Mahama’s claim of scant reserves for debt servicing, highlighting that despite global economic pressures, Ghana’s Gross International Reserves improved from $5.9 billion in December 2023 to $7.7 billion in October 2024, representing 3.5 months of import cover.
“The cedi remained stable, moving from GH₵12.4 per dollar in December 2023 to GH₵14.50 per dollar in December 2024—a controlled depreciation considering external pressures,” she added.
In her critique, Ms. Osei-Asare pointed out that Mahama had failed to acknowledge that the NPP left behind resources for the new government to meet early 2025 debt service obligations, including the GH¢6 billion paid out to bondholders, which he proudly announced to Parliament.
“He was quick to highlight the $250 million in the sinking fund at the end of 2016 but conveniently ignored the $1 billion due for external debt repayments in 2017, which the NPP had to manage,” she remarked.
Rejecting President Mahama’s assertion that the economy was “criminally handled” by the NPP, Ms. Osei-Asare provided evidence of economic growth and stability before the change in government.
“Real GDP growth averaged 6.3% in 2024, led by Industry at 10.4%. We achieved a positive primary balance of 0.4% in November 2024 compared to the negative 1.4% of GDP in 2016. Total revenue exceeded its target by 3.3%. The signs of economic recovery were clear,” she asserted.
Ms. Osei-Asare also took issue with President Mahama’s introduction of ambitious social intervention programs without a clear funding strategy.
