Dr. George Domfe, Founding President of the Africa Policy Lens and Senior Research Fellow at the University of Ghana’s Centre for Social Policy Studies, has called on the Mahama administration to focus on boosting local production for export as a key strategy to sustain the Ghanaian cedi’s recent gains against the US dollar.
In a statement, Dr. Domfe cautioned that the cedi’s current appreciation is likely to be short-lived without targeted economic policies to reduce import dependency. He emphasized the need for a long-term approach that prioritizes local manufacturing and export diversification to secure foreign exchange inflows and reduce the pressure on the national currency.
“To keep the cedi continuously strong, we must consciously increase the production of goods for export. This is the only way to consistently bring in more US dollars and strengthen our foreign reserves at the Bank of Ghana,” Dr. Domfe noted.
He argued that without a deliberate shift towards export-driven growth, the cedi’s recent performance could be undermined, potentially leading to factory closures, job losses, and economic instability.
“If we don’t produce more for external markets, our economy will remain vulnerable to currency shocks, and local industries will struggle to compete with imported goods, which could push more people out of jobs,” he warned.
Dr. Domfe urged the Mahama government to enact policies that encourage Ghanaians to invest in export-oriented businesses, stressing that such a move would provide a more stable foundation for the cedi and help reduce the country’s trade deficit.
He further called for a national mindset shift, highlighting the importance of reducing import dependency to create jobs and foster sustainable economic growth.
Dr. Domfe’s comments come at a critical time as Ghana navigates a challenging economic landscape, with the government under pressure to stabilize the cedi and support local industries.
