President Mahama Links Stronger Cedi to Increased Local Production and Export Growth
Ghana’s ability to produce more of the goods it consumes and process more of its agricultural and natural resources will be central to efforts to build a stronger and more stable Cedi, President John Dramani Mahama has said.
He said expanding domestic production and diversifying exports would help increase foreign exchange earnings while reducing the country’s dependence on imported goods, easing some of the pressures on the national currency.
President Mahama made the remarks on Thursday, at the launch of the Ghana Cedi Heritage Series at the Bank of Ghana in Accra, where he outlined the Government’s economic direction under its New Economy Programme.
The President said the programme, which anchors the 2027 Budget, was a four-year, $10 billion initiative aimed at transforming the structure of the Ghanaian economy.
“We are working towards an economy that produces more of what we consume, it processes more of what we grow, and earns more from what we export to the world,” he said.
He explained that when local farms supplied domestic markets and factories converted Ghana’s raw materials into finished products, the country would create jobs at home and reduce the need to spend scarce foreign exchange on goods that could be produced competitively in Ghana.
“When Ghanaian farms supply our markets and Ghanaian factories turn our resources into finished products, we create jobs locally and reduce the need to spend scarce foreign exchange on goods that we can produce competitively ourselves,” President Mahama stated.
He said the relationship between domestic production and currency stability was direct, since increased exports could bring more foreign exchange into the country while local production could reduce demand for imports.
“Expanding and diversifying our exports can bring in more foreign exchange. Producing more at home can reduce our dependence on imports,” he added.
President Mahama noted that these measures would have to be supported by disciplined public financial management and credible monetary policies to create the conditions for a currency capable of withstanding external economic shocks.
“Together with disciplined public finance and credible monetary policies, these measures will help create the conditions for a stronger, more stable Cedi, better able to withstand any global shocks. That is the future my government is determined to build,” he said.
He stressed that the benefits of a stable currency must extend beyond economic indicators and be reflected in the everyday activities of households and businesses.
For traders, he said, a stronger Cedi should provide greater certainty when ordering supplies, while manufacturers should have more confidence when planning production. Families, he added, should be able to rely more confidently on their incomes and savings to meet their needs.
“The strength of our currency must be felt in the everyday lives of our people,” the President said.
He expressed confidence in the future of the Cedi, linking that confidence to the productive capacity of Ghanaians and the Government’s efforts to expand opportunities for local businesses and industries.
The President said the Heritage Series should therefore represent not only the history of the national currency but also the country’s determination to build a stronger economic future.
The launch formed part of the Bank of Ghana’s preparations towards its 70th anniversary of service.
