‘Ghana’s Economic Stability Could Be Short-Lived Without Tough Reforms’

The Member of Parliament for Obuasi East, Kwaku Agyemang Kwarteng, has mounted a direct political challenge to President John Dramani Mahama, warning that the government’s much-touted economic stability is fragile and potentially cosmetic, unless backed by bold and politically costly reforms.

While acknowledging improvements in inflation and relative cedi stability, the former Deputy Minister for Finance said the Mahama administration has so far failed to demonstrate the political will required to fundamentally restructure Ghana’s economy.

Speaking on Citi FM’s Eyewitness News programme, monitored by The Chronicle, Mr. Kwarteng cautioned that Ghana is witnessing a familiar political pattern – temporary calm without deep reform, which has historically ended in economic relapse.

“I am not seeing the fundamental changes whether in our balance of payments, expenditure reforms, or revenue mobilisation – that will sustain this stability. That is why I fear this is just another short-lived episode.”

Ghana’s inflation in 2025 saw a significant decline, ending the year at 5.4% which marks the 12th consecutive month of decrease from a high of 23.8% in December 2024, driven primarily by easing food prices and improved macroeconomic stability.

Stability Without Reform a Political Risk

Mr. Kwaku Kwarteng’s comments strike at the heart of the Mahama administration’s economic messaging, which has highlighted macroeconomic improvement as evidence of effective leadership.

According to the Obuasi East MP, the current economic narrative lacks structural credibility, arguing that without politically difficult decisions, the stability being celebrated today could unravel.

“We have seen this before under various governments. Things look calm for a while, but because the hard reforms are avoided, the gains disappear,” he warned.

Although he praised government efforts to stabilise the economy over the past year, he stressed that such improvements alone do not amount to meaningful economic transformation.

“Yes, traders are more comfortable. Inflation is down. The cedi has stabilised somewhat. But that alone is not a reform – and that is the political problem,” he said.

Opposition Voice, National Concern

Quizzed by host Umaru Sanda Amadu on whether his comments reflected a desire for the economy to falter, Mr. Kwaku Kwarteng dismissed the notion as political dishonesty. “Why would I wish that? I am a Ghanaian,” he said.

Positioning himself as an opposition figure and a technocrat, the Civil Engineer and Economist insisted that his critique was grounded in policy reality, not partisan interest.

“If these gains were the result of clear policy shifts – expenditure discipline, revenue expansion and structural reform, I would be confident. But I am not seeing that.”

Mr. Kwaku Kwarteng stopped short of personal attacks on the Minister for Finance, Dr. Cassiel Ato Baah Forson, commending him for helping stabilise the system. “Whatever he is doing to bring us this stability is good and I commend him for it,” he said.

However, he warned that history shows that technocratic management without political reform has limits.

“Unless these gains are premised on stronger structural changes, they will be short-lived. That is the lesson Ghana keeps learning the hard way.”

Mahama’s Final Term Under the Spotlight

Turning to President Mahama’s legacy, Mr. Kwaku Kwarteng said the President’s final term presents a rare political opportunity to take tough decisions without electoral consequences, an opportunity he says must not be wasted.

“President Mahama has very little electoral risk for doing the right things. He is not coming back,” he noted.

According to him, the President’s experience gives him the authority to confront entrenched fiscal problems that previous governments have avoided.

“This is the moment for the heavy lifting. If not now, then when?” he asked.

Rejecting claims that harsh reforms are politically suicidal, Mr. Kwarteng argued that Ghanaian voters ultimately respect leadership that confronts difficult realities.

“The belief that enforcing tax compliance or cutting waste will cost government elections is exaggerated,” he said, adding “A government that is serious about reform earns credibility.”

Mr. Kwaku Kwarteng concluded with a stark warning, saying he has yet to see any meaningful policy shifts in major expenditure areas such as the public sector wage bill and interest payments.

“If we cannot point to clear policy changes in these big-ticket areas, then this is business as usual,” he said.

“Mr. President, you are not coming back. Please deploy the hard decisions this country has needed for decades,” he suggested.

 

 

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