First 120 days of the NDC economic diet

By Joe JACKSON

Let’s talk about a transformation story – not the kind where I go on a Keto diet for 120 days, eat only goat khebabs and suddenly I look like a Mr Ghana.

No, this is about Ghana’s economy trying out its version of intermittent fasting, salads, and a strict no-junk-bonds diet – “The First 120 Days of the NDC Economic Diet”.

It’s been 120 days since the new NDC administration took over the economic kitchen, and boy, have they been cooking.

The recipe? A mix of global fortune, local commitment, and just a dash of IMF anxiety. So, what’s changed? Everything and nothing – but mostly everything if you look hard enough.

The BEFORE and AFTER Pictures (Numbers):

They say numbers don’t lie – though they do wink at you if you catch them at the right angle. In these 120 days, Ghana has flirted with economic prudence like a teenage girl pretending to enjoy a salad on a first date with a fresh ‘DadaB’ boy.

Gold is glittering more than ever. Investor panic (thank you, Trump’s Tariff Tantrum) has made gold the economic equivalent of comfort food – everyone’s hoarding it and the price is going through the roof.

And Ghana, not one to miss a golden opportunity, has increased its Bank of Ghana gold reserves and launched the GoldBOD, a strategy so shiny it would have made King Solomon jealous.

Meanwhile, petroleum prices globally decided to calm down, probably after seeing their pastor. The pastor prophesied lower global economic growth and has meant stable transport costs, less pain at the pump, and no need for prayer before visiting a fuel station in Ghana.

The Ghana cedi (GHS), usually the underdog in the ‘WrestleMania’ cage, pulled off an ‘Undertaker’ moment. It appreciated, making imports cheaper and reducing inflation pressure – at least long enough for us to enjoy a modestly priced tin of corned beef.

On the home front, the government got serious – or at least put on a very serious face. Borrowing costs were trimmed close to ‘Sakora’, public spending was reined in, and the MPC rate was kept high enough to scare away excess liquidity like a strict headmaster (Governor) at a Banking College disco.

Why this diet worked

Some might say it’s all global luck. Like getting fit because your car broke down and you had to walk more… But there was some real effort here too. Internally, ‘Uncre’ Cassiel Ato Forson flexed his fiscal muscles and whispered sweet ‘raps’ to investors.

There’s a genuine push to bring back belief in government bonds, though local investors are still eyeing the offering like suspicious meat at a roadside chop bar. And then there’s the Trump Factor.

Apparently, a former U.S. president throwing tariffs, like Oga spraying cash at a Nigerian wedding, somehow helped Ghana. The global economy sneezed, the US Dollar took a beating, and Ghana caught a blessing. Who would have thought?

Reversal risks lying in wait:

The Trump trade war could end, the USD could regain its mojo, and petroleum prices might rediscover their flair for drama. All of a sudden, the fuel station could go from a casual stop to an existential crisis again. Closer to home, there are some troublesome dark clouds.

T-bill auctions could start flopping like the Black Stars at the last AFCON. Medium Term Bonds may look like Manchester United’s 2024-25 League position… And let’s not even talk about the ever-hungry energy sector that eats up cash like a hungry weed smoker eats banku.

Then there’s the unpredictable Ghanaian weather – and not just the clouds. A poor harvest could mean soaring food prices. If tomatoes become more valuable than Bitcoin again, we’re all in trouble.

So, what now?

The economy, it seems, is like my ‘Obolo’ sister who’s finally going to the gym –wobbling, panting, but definitely moving.

The NDC administration has made some smart moves. But staying fit is harder than getting fit. One bad global event, one ill-timed domestic overspend, and it’s back to bloat and inflation-induced indigestion.

The key? Keep up the discipline, avoid the temptation to binge-spend before elections, and maybe say a little prayer that gold keeps shining, petroleum stays chill, and the cedi doesn’t sneak off for a nap.

Final Thoughts: From ‘Mayday!’ to ‘We dey manage’

120 days in, Ghana’s economic report card reads: ‘Trying. Shows promise. Needs consistency. Prone to distraction’. But compared to past years of crisis headlines and currency collapse panic, this is… hopeful.

‘If nothing else, we’ve proven that with a bit of global luck, local grit, and gold in the vault, we can keep the economic engine running – even if it occasionally coughs. So, for now, let’s give a cautious nod, tighten our fiscal belts, and whisper the national motto of resilience: “We dey manage.”

>>>the writer is the CEO of Dalex Finance and a Fellow of the Institute of Chartered Economists Ghana

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