President Mahama sets $20bn-plus reserve goal to shield Ghana from external shocks

Speaking during an address to Zambia’s National Assembly, Mahama framed the goal as a cornerstone of Ghana’s economic Reset Agenda, which prioritises fiscal discipline, strategic investment, and long-term growth.

He said stronger reserves would allow the country to meet its international obligations without excessive reliance on external financing.

“Building robust foreign reserves is central to safeguarding our national economy and ensuring we can meet our obligations without undue dependence on external financing,” Mahama told lawmakers.

The President argued that a healthier reserve position would help stabilise the cedi, protect the economy from volatility in global markets, and improve investor confidence, especially as many African economies remain vulnerable to tightening global financial conditions.

He added that tighter coordination between fiscal and monetary authorities will be key to ensuring reserves are built sustainably.

Beyond national measures, Mahama made a broader continental case for retaining African capital within Africa. He noted that a significant share of Africa’s foreign reserves remains parked in Western financial institutions, limiting the continent’s ability to finance its own development.

According to him, redirecting even 30 percent of Africa’s reserves into African financial institutions could unlock substantial capital for infrastructure, industrialisation, and economic transformation.

By 2029, Mahama said, Ghana’s reserve target would provide “security, stability, and a platform for sustainable growth,” underscoring the country’s push to pair domestic reforms with regional cooperation in a shifting global economy.