Ofori-Atta Behind Ghana’s Economic Stability, Says Economist George Domfe

Development Economist and Senior Research Fellow at the Centre for Social Policy Studies (CSPS) at the University of Ghana, Dr. George Domfe, has attributed Ghana’s current economic stability to the bold policy choices made by former Finance Minister, Ken Ofori-Atta.

Speaking in an interview, Dr. Domfe, who also serves as the Founding President of Africa Policy Lens (APL), emphasized that the decision to implement a domestic debt restructuring program during Ghana’s economic crisis laid the foundation for the country’s recovery.

“One reason to praise Ken Ofori-Atta is the debt restructuring program,” he stated. “It significantly reduced outflows of foreign currency meant for external interest payments and amortization. These were critical steps that saved the future of Ghana’s economy. Ghanaians should celebrate him for such efforts.”

He noted that without the Domestic Debt Exchange Programme (DDEP) and other complementary fiscal measures introduced by the former minister, Ghana’s recent economic performance would not have been possible. He also highlighted the role of the IMF programme, particularly its impact on the Bank of Ghana’s (BoG) foreign reserves.

“The IMF programme helped boost BoG reserves, giving it the space to intervene in the forex market with nearly $1 billion in just two months,” Dr. Domfe explained. “The current exchange rate regime is managed floating, and BoG is now able to actively defend the cedi due to the stronger reserves—reserves which were built through the foresight and actions of Ken Ofori-Atta.”

On the ability of previous administrations to act similarly, he remarked, “The external environment at the time was not as supportive. Even when Dr. Ernest Addison said he could bring the dollar rate down to GHS10, the timing wasn’t right for such an intervention.”

Dr. Domfe further explained that current low demand for foreign currency is also helping the cedi’s performance. Factors contributing to this include a drop in global crude oil prices, lower government spending, and rising inflows from gold exports and remittances.

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He also pointed to the successful debt negotiations with bondholders, which led to a 37% nominal reduction in Ghana’s debt—approximately USD 5 billion—and debt service savings of USD 4.3 billion. Interest on bonded debt, he noted, has declined from an average of 8% to below 5%.

“This significant achievement positions Ghana for a brighter economic future,” Dr. Domfe concluded. “It enables the government to now focus on long-term sustainable growth and improved fiscal management.”