Executive Chairman of AB & David Law, David Ofosu-Dorte, has cautioned that Ghana’s ongoing economic improvements — particularly the recent appreciation of the cedi — could be undermined unless the nation addresses deeper structural and behavioral challenges.
Speaking on the Joy FM Super Morning Show on Tuesday, May 27, Ofosu-Dorte warned that while the cedi’s 22% appreciation against the dollar since January is encouraging, it may provoke unintended consequences, including a rush by financial institutions to offload dollar reserves.
“If the dollar goes below a certain threshold, we could see panic dumping by institutions sitting on large dollar holdings. That kind of destabilisation could unravel the progress we’ve made,” he noted.
But beyond the risks of market volatility, Mr. Ofosu-Dorte emphasized the need for a national mindset change, arguing that ingrained behaviors such as upward-only price adjustments — even when the cedi strengthens — reveal a more systemic problem.
“When the dollar rises, prices go up instantly. But when it drops, prices stay high. That’s not just economics — that’s a mindset issue,” he stressed.
He called for strategic reforms that go beyond reactive measures and short-term gains. “We need stability, yes — but also consistency in policy, a national plan for import substitution, and a framework that promotes discipline without relying on IMF bailouts every seven years.”
Commenting on former President Mahama’s recently outlined eight-point economic recovery plan, Ofosu-Dorte expressed disappointment at the lack of actionable detail, especially regarding Ghana’s persistent dependence on imports.
“Boosting exports and manufacturing is the right direction, but how exactly will that be done? Without clear strategies, we risk repeating old cycles.”
Economists have echoed his concerns, advising against abrupt dollar conversions and emphasizing the importance of policy clarity and investor confidence to sustain recent gains.
As inflation remains stubborn at 23%, and commodity prices show little sensitivity to exchange rate movements, analysts argue that Ghana’s path to lasting economic health must involve more than just fiscal fixes — it must reshape national attitudes and systemic foundations.
