Abena Osei-Asare rebuts President Mahama’s claims about Ghana’s economic management, asserting that the NPP had laid the groundwork for recovery before his term. She emphasizes the progress made in the financial sector, improved international reserves, and need for viable funding for social programs. Osei-Asare also critiques Mahama’s proposed economic dialogues as politically motivated, highlighting the importance of leadership aimed at future growth instead of retrospective analysis.
In response to President John Mahama’s recent State of the Nation Address (SONA), former Finance Minister Abena Osei-Asare criticized him for neglecting to recognize the economic recovery efforts made under the previous NPP administration. She accused Mahama of portraying a distorted image of the economy’s status while ignoring the key initiatives that contributed to its recovery prior to his term. Osei-Asare emphasized the importance of acknowledging the adaptive measures that had stabilized the economy before Mahama assumed office.
During her response, Osei-Asare noted that the NPP was transparent about the economic obstacles faced by Ghana, but employed decisive actions leading to a recovery endorsed by the IMF. She mentioned that, by the time the NPP administration ended, the financial sector was significantly stronger than what Mahama had depicted, with figures supporting this improvement.
Osei-Asare highlighted that the total assets of the banking sector had surged from GH¢81.2 billion at the end of 2016 to GH¢367.2 billion in October 2024. Additionally, private sector credit saw a substantial growth of 28.8% in 2024, contrasting a negative 7.5% in 2023, indicating a robust financial recovery. She emphasized the protective measures taken during the cleanup of the financial sector.
Rejecting Mahama’s suggestion of insufficient reserves for debt repayment, she pointed out that Ghana’s Gross International Reserves increased from $5.9 billion in December 2023 to $7.7 billion in October 2024, equating to 3.5 months of import coverage. Osei-Asare reinforced this by stating that, despite external pressures, the cedi depreciated in a controlled manner, moving from GH₵12.4 to GH₵14.50 against the dollar within a year.
Critically, Osei-Asare remarked that Mahama failed to recognize resources left by the NPP which were allocated for early 2025 debt obligations. Notably, she mentioned the GH¢6 billion distributed to bondholders, yet Mahama highlighted only the $250 million in the sinking fund accrued at the end of 2016. She asserted that the NPP faced a $1 billion external debt repayment in 2017, which Mahama did not account for.
Dismissing Mahama’s claims of poor economic management by the NPP, Osei-Asare presented data illustrating notable economic growth under the NPP, such as a real GDP growth of 6.3% for 2024. She noted achievements like positive primary balances and total revenue surpassing targets, further highlighting that signs of economic recovery were evident during their tenure.
Moreover, she criticized Mahama’s announcement of ambitious social intervention programs without accompanying funding strategies. Osei-Asare argued that responsible economic planning should take precedence, especially in an economy purportedly facing intense challenges. Instead, Mahama outlined various programs without clarity on their financial feasibility, raising concerns about fiscal sustainability.
Calling for cautious financial governance, Osei-Asare referenced the NDC’s prior excessive spending, which necessitated an IMF bailout in 2015, underscoring the need for prudent financial management. She urged that the current administration should focus on fostering economic confidence rather than embarking on large social programs without proper planning.
Regarding Mahama’s proposed National Economic Dialogue, Osei-Asare expressed skepticism, viewing it as a political tactic rather than a genuine commitment to stakeholder engagement. She asserted that effective government depends on decisive leadership and implementation of policies rather than excessive deliberation.
In her concluding remarks, Osei-Asare challenged President Mahama to prioritize Ghana’s future rather than dwell on the past. She expressed that Mahama’s address appeared to focus on grievances rather than solutions. Osei-Asare reiterated the NPP’s dedication to constructive discourse but warned against misleading economic narratives and urged for responsible governance prioritizing sustainable growth.
Abena Osei-Asare firmly disputes President Mahama’s portrayal of Ghana’s economic situation, asserting that the NPP’s previous actions laid a solid groundwork for recovery. She underscores the importance of responsible fiscal policies and transparent communication regarding the economy’s status. Osei-Asare calls for leadership focused on future progression rather than dwelling on historical mismanagement, advocating for clarity and accountability in governance. She emphasizes the necessity for sustainable economic strategies that empower citizens and support robust growth.
Original Source: www.myjoyonline.com
