The Minority in Parliament has challenged the rationale behind President John Dramani Mahama’s proposed New Economy agenda, describing it as a rebranding of the government’s 24-Hour Economy programme and questioning its capacity to deliver meaningful economic transformation.
The Minority argues that the administration is introducing a new policy identity without adequately accounting for the implementation of its existing commitments, particularly those made under the 24-Hour Economy initiative.
Member of Parliament for Ofoase-Ayirebi, Kojo Oppong Nkrumah, who led the criticism, said the proposed agenda raises fundamental questions about the government’s economic priorities, policy consistency and ability to translate favourable macroeconomic indicators into tangible improvements in the lives of Ghanaians.
He made the remarks at a Minority press conference on Tuesday, November 10, held under the theme, “Papar Economy vs Pocket Economy: The Ghanaian Expectation of the 2027 Budget.”
Mr Oppong Nkrumah argued that the government has received substantial public resources since assuming office but has failed, in the Minority’s assessment, to make sufficient progress in fulfilling its major policy promises.
He put the resources available to the administration during its first two years at approximately GH¢650 billion, insisting that Ghanaians deserved an account of how the funds had been utilised and what tangible outcomes has been achieved.
He questioned the rationale for introducing another major economic programme when, according to him, several commitments under the original 24-Hour Economy policy remains outstanding.
Mr Oppong Nkrumah accused the government of relying on new policy announcements and branding exercises to shift public attention from what he described as shortcomings in the implementation of its earlier commitments.
He identified three approaches which he alleged the administration has adopted in responding to criticism of its economic performance: attempts to intimidate critics, the presentation of economic statistics that do not adequately reflect conditions experienced by ordinary Ghanaians, and the introduction of fresh policy announcements whenever questions arise about existing promises.
He cited the proposed New Economy agenda as an example, arguing that it represents a rebranding of the 24-Hour Economy programme rather than a fundamentally new economic direction.
Drawing comparisons with the government’s gold purchasing initiatives and the transformation of the Precious Minerals Marketing Company (PMMC) into the Ghana Gold Board, he alleged that the administration is using new names and branding to give existing initiatives a fresh identity.
“The new economy is a scam,” he declared, maintaining that the government should first demonstrate progress on its existing commitments before introducing another flagship programme.
He also argued that the 2027 Budget, expected to be presented to Parliament on Thursday, November 12, would likely feature economic projections that might not adequately capture the financial difficulties confronting households and businesses.
A significant portion of the Minority’s presentation focused on the relationship between declining inflation, monetary policy and household purchasing power.
Mr Oppong Nkrumah questioned the government’s reliance on the reported inflation rate of 5.5 per cent as evidence of economic recovery, arguing that lower inflation did not automatically translate into increased disposable income, stronger consumer demand or improved business performance.
He attributed the decline largely to what he described as aggressive monetary tightening by the Bank of Ghana, rather than improvements in domestic production and the supply of goods and services.
Citing the central bank’s 2025 accounts, he claimed that approximately GH¢93 billion has been absorbed from the financial system as part of measures to manage demand.
He said the Bank of Ghana has acknowledged the demand-management approach during an engagement with Parliament’s Economy Committee.
According to him, the restrictive monetary policy has reduced the amount of money circulating within the economy, limiting the ability of consumers and businesses to spend.
He argued that although such measures could contribute to lower inflation, they could also suppress economic activity and create difficulties for businesses that depend on consumer spending.
The MP identified the financial cost of monetary tightening, declining business sales and persistent unemployment as three major consequences of the approach.
He claimed that the Bank of Ghana incurred approximately GH¢16 billion in costs associated with the tightening measures in 2025.
On business activity, he cited concerns about declining sales among traders in major commercial centres, including Mokola and Kantamanto, ahead of the Christmas season.
He also referred to reports from the Association of Ghana Industries (AGI) indicating a significant decline in sales among some businesses since early 2025.
According to him, liquidity constraints has weakened demand, forcing some businesses to reduce prices to clear their inventories and avoid accumulating debts.
He argued that the situation raises questions about whether improvements in headline inflation are being accompanied by a corresponding recovery in commercial activity.
The Minority also questioned the government’s employment record, particularly its promises to create jobs through flagship economic initiatives.
Mr Oppong Nkrumah referred to figures presented by the Ranking Member on Parliament’s Finance Committee, Dr Mohammed Amin Adam, and argued that the administration has yet to demonstrate sufficient progress towards its employment commitments.
He cited statistics which, according to him, places youth unemployment in the Greater Accra Region at nearly 50 per cent.
He said the figure highlights the difficulties confronting young people seeking employment, despite the government’s assurances about economic recovery and job creation.
The MP argued that economic policies should be assessed partly by their ability to generate employment and expand opportunities for young people, rather than relying solely on improvements in selected macroeconomic indicators.
Mr Oppong Nkrumah further challenged the government’s inflation narrative by highlighting increases in the cost of essential utilities.
He claimed that electricity tariffs has increased by approximately 28 per cent since the administration assumed office, while water tariffs has risen by about 13.3 per cent.
He contrasted these increases with the government’s 9 per cent salary adjustment for workers, questioning whether the earnings adjustment is sufficient to absorb the rising cost of essential services.
According to him, the disparity between the headline inflation rate and the increases in household expenses means that workers continues to experience significant financial pressure despite the reported moderation in inflation.
He maintained that the real test of economic recovery should be whether households could afford essential goods and services and retain sufficient income to meet their daily needs.
The Ofoase-Ayirebi MP also questioned the significance of declining interest rates, arguing that cheaper borrowing would have limited impact if businesses were unable to access sufficient credit to finance their operations.
He said the assessment of private sector financing should consider not only year-on-year growth in credit but also the proportion of Gross Domestic Product (GDP) represented by credit extended to businesses.
To support his argument, he presented figures indicating that private sector credit as a share of GDP stands at approximately 16 per cent in 2017.
He said the ratio declined to 13.7 per cent in 2018, 13.9 per cent in 2019, 13 per cent in 2020, 13.1 per cent in 2021 and 13.3 per cent in 2022.
However, he claimed that the figure has subsequently fallen to below 8 per cent under the current administration.
Mr Oppong Nkrumah argued that the development could restrict businesses’ access to financing for expansion, investment and employment creation.
He further questioned the financial implications of the government’s monetary policy interventions for the Bank of Ghana.
According to him, the central bank has recorded a comprehensive loss of approximately GH¢34 billion during the first year of the administration’s monetary policy interventions.
He said the figure has been acknowledged by the central bank during its recent engagement with Parliament’s Economy Committee, following earlier disagreements over the factors responsible for the losses.
The MP argued that the financial implications of the interventions should be considered alongside the level of credit available to businesses and the broader impact on economic activity.
The Minority also raised concerns about the government’s foreign exchange management strategy, particularly the sustainability of the cedi’s strong appreciation in 2025.
Mr Oppong Nkrumah argued that the currency’s performance during the period should not be viewed in isolation, insisting that substantial foreign exchange interventions has played a significant role in supporting the cedi.
He maintained that currency stability achieved through large-scale dollar injections could create vulnerabilities if the underlying economic conditions are not sufficiently strengthened.
According to figures he presented, the cedi appreciated by approximately 40 per cent in 2025.
However, he claimed that the currency has subsequently depreciated by approximately 9.5 per cent against the US dollar by September 2026, with the rate approaching 10 per cent by early November.
He said the development raises questions about the sustainability of the government’s foreign exchange management strategy.
Citing market reports, Mr Oppong Nkrumah claimed that the Bank of Ghana has supplied approximately US$9.2 billion to the foreign exchange market between January and August 2026, including about US$2 billion in June.
He further stated that the country’s gross international reserves has declined from approximately US$14.5 billion in February to US$11.1 billion in August, representing a reduction of more than US$3 billion within six months.
He also referred to an estimated GH¢8.3 billion loss recorded by the central bank in 2025 from exchange rate movements affecting its foreign assets and gold holdings.
The MP questioned why the cedi continues to face depreciation pressures despite the reported foreign exchange interventions.
Mr Oppong Nkrumah warned that movements in the exchange rate are creating difficulties for domestic manufacturers, particularly businesses that depend on imported machinery, raw materials and other production inputs.
He argued that the sharp appreciation of the cedi in 2025 has made imported goods relatively cheaper, placing local producers at a competitive disadvantage.
He cited domestic producers of rice, maize and other locally manufactured products as examples of businesses facing competition from imported alternatives.
He further argued that the subsequent depreciation of the cedi has created additional challenges by increasing the cost of imported production inputs and machinery.
According to him, local manufacturers are therefore facing pressure from both currency movements: cheaper imports during periods of strong appreciation and higher production costs when the cedi depreciated.
He warned that the situation could undermine domestic manufacturing, reduce the competitiveness of locally produced goods and affect employment opportunities.
The MP also raised environmental concerns, linking the country’s foreign exchange and gold production activities to the persistent challenges associated with illegal small-scale mining, commonly known as galamsey.
He argued that economic policies aimed at generating foreign exchange and stabilising the currency should not compromise the protection of the country’s water bodies and other natural resources.
The press conference forms part of the Minority’s broader scrutiny of the government’s economic management ahead of the presentation of the 2027 Budget.
Mr Oppong Nkrumah’s concerns follows criticism by Dr Mohammed Amin Adam, who questioned the government’s capacity to finance and implement its proposed economic initiatives while outstanding commitments under existing programmes remained unresolved.
The Minority is expected to use the budget debate to demand greater accountability regarding public expenditure, job creation, monetary policy interventions, private sector financing and the implementation of flagship programmes.
At the centre of its argument is the position that economic recovery should not be measured solely by headline inflation, interest rates and exchange rate movements, but also by improvements in household purchasing power, business performance and employment opportunities.
The 2027 Budget is expected to provide an opportunity for the administration to outline its economic priorities, funding arrangements and implementation framework for the proposed New Economy agenda.
The Minority, however, insists that the government must demonstrate how its new economic direction differs from previous commitments and provide evidence that its policies are delivering measurable improvements in the lives of Ghanaians.
By 1960news.com
