Ghana risks continued currency weakness without ownership reforms - Joe Jackson
Joe Jackson, the Chief Executive Officer of Dalex Finance, cautioned on Wednesday in Accra that Ghana's currency will remain under persistent pressure unless the country undertakes bold reforms to increase domestic ownership of resources. He described the belief that the Ghana cedi weakened mainly because of excessive imports as "an Ananse story that hides the structural challenges confronting the economy."
Mr. Jackson said that although Ghana recorded a trade surplus of over US$5 billion in 2024, the cedi continued to depreciate because more than half of the value generated from exports did not remain in the local economy. He noted that gold exports were valued at about US$11.9 billion in 2024, but Ghana retained only 46 per cent of the value. He said Ghana retained about 35 per cent of oil and gas export value in 2024, resulting in an outflow of over US$2.5 billion.
Mr. Jackson urged policymakers to renegotiate resource contracts, strengthen local value chains and increase Ghanaian equity in extractive industries. He also encouraged businesses and citizens to understand that the depreciation of the cedi had rooted in structural weaknesses, not consumer choices.
Quick Summary
Dalex Finance CEO Joe Jackson says Ghana's currency faces persistent weakness. He suggests long-held beliefs about imports are misleading- hinting at deeper structural challenges.
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