Minister for Government Communications Felix Kwakye Ofosu has declared that Ghana’s economic situation has improved significantly since the Mahama administration took office in January 2025, citing multiple indicators pointing in the right direction.
Speaking on TV3’s Hot Issues on January 4 during a review of President John Dramani Mahama’s first year in office, Kwakye Ofosu stated that any objective observer would agree the country is in a much better position than when the National Democratic Congress (NDC) assumed power.
The Minister emphasized that the economy was the single most important item for Ghanaian voters barely a year ago, making recent gains particularly significant. He argued that the government has acquitted itself quite well, with performance easy to measure by comparing where the country was a year ago to its current position.
Highlighting specific gains, Kwakye Ofosu pointed to a reduction in the cost of living driven largely by falling prices across several sectors. He also underscored improvements in the performance of the Ghana cedi, describing currency depreciation as a longstanding problem that had negatively affected the economy before the NDC returned to power.
According to the Minister, the cedi is projected to record an annual appreciation of close to 30 percent, marking the first time in many years that such gains have been achieved. He stated that this strong performance has contributed directly to easing inflationary pressures and lowering prices of goods and services.
However, verified data indicates the cedi’s performance exceeded even the Minister’s projections. According to Bloomberg, the Ghana cedi appreciated by approximately 41 percent in 2025, making it the best performing currency among 144 currencies tracked globally after the Russian ruble and marking the first annual gain in over 30 years since Bloomberg began compiling data in 1994.
The Bank of Ghana reported the cedi closed 2025 at 10.45 cedis to the US dollar on the interbank market, compared to approximately 14.70 cedis in January 2025, representing a gain of about 29 percent on the official market. Forex bureau rates showed appreciation from around 17 cedis to 12.30 cedis, reflecting a 27.75 percent gain in the retail market.
The cedi’s historic turnaround followed years of volatility that saw it ranked among the weakest emerging market currencies in the early 2020s. In 2024 alone, the currency lost nearly 24 percent of its value under the previous administration, making it the fourth weakest currency in West Africa according to the World Bank Africa Pulse Report.
Bank of Ghana gold holdings reached 38.04 tonnes by October 2025, a massive leap from 8.78 tonnes held in May 2023, while gross international reserves swelled by approximately 24 percent to about 11.4 billion dollars. The Gold for Reserves programme managed by GoldBod has been credited with providing the central bank with a hard asset buffer that reduces reliance on the US dollar.
Inflation declined for 11 consecutive months from 23.8 percent in January to 6.3 percent in November 2025, representing the lowest rate since 2021. The government met its 2.8 percent budget deficit target for 2025 under the three billion dollar International Monetary Fund (IMF) supported programme, with plans to reduce it further in 2026.
Ghana’s total public debt dropped from 726.7 billion cedis, representing 61.8 percent of GDP in 2024, to 630.2 billion cedis, equivalent to 45 percent of GDP by October 2025, according to the 2026 Budget Statement presented to Parliament. Finance Minister Ato Forson attributed the turnaround to fiscal discipline, prudent borrowing and a stronger cedi.
Ghana’s restructured dollar bonds returned more than 30 percent in 2025, ranking among the top performers across emerging markets. The IMF acknowledged the programme’s success in its Fifth Review completed in December 2025, noting that Ghana reached its 2028 reserve coverage target in 2025, three years ahead of schedule.
The World Bank stated that Ghana’s currency was strengthened by tight monetary and fiscal policies, increased export revenues buoyed by higher prices of gold and cocoa, and improved market sentiment. Forbes ranked the cedi as the fourth best performing currency in Africa, with a value of 10.93 cedis per US dollar.
However, analysts warn that the cedi’s strength is currently balanced on the price of gold, with concerns that if global tensions ease or central banks begin offloading gold reserves, a retraction in prices could leave Ghana vulnerable. Strategic pivots toward refining gold domestically rather than just exporting raw bullion are underway, with the commissioning of a new national refinery expected in mid 2026.
The Minister’s comments come as the Mahama administration marks one year of its second term, with government officials highlighting economic recovery and improved living conditions as key achievements. The performance represents a significant departure from analyst predictions, which had forecast the cedi would end 2025 between 15.30 and 17.70 cedis to the dollar.
